Wednesday, December 1, 2010

Will WikiLeaks Spur the Government to More Aggressively Promote Dodd-Frank’s Bounty Provisions?

Guest Blogger - Victor Vital

Much has been written about the new bounty-provisions in the Dodd-Frank bill passed this summer. SEC-regulated companies are bracing themselves for an uptick in enforcement actions stemming from whistle-blowers. Also legal commentators and the compliance community are very concerned about the new bounty provisions that they fear will incentivize whistle-blowers to bypass compliance programs that companies have spent considerable sums of money and effort creating, partly in response to government regulation.

Now enter WikiLeaks. WikiLeaks is the topic de jour, with its market-moving impact demonstrated by Bank of America’s 3% stock decline in response to speculation that it is an imminent target of WikiLeaks. (see WSJ story - here). Of interest to readers of this blog is whether WikiLeaks will cause the SEC and the CFTC to become even more aggressive than they may have previously planned to be in encouraging whistle-blowers to come forward and in rewarding those whistle-blowers. Given the government’s great consternation at WikiLeaks’ disclosures, it seems natural that the government might step up its efforts to encourage whistle-blowers to disclose original information of corporate misconduct through government-sanctioned channels. Just something to ponder.

Victor Vital is partner at Baker Botts L.L.P. whose practices focuses on white collar criminal defense and complext litigation matters.

http://lawprofessors.typepad.com/whitecollarcrime_blog/2010/12/will-wikileaks-spur-the-government-to-more-aggressively-promote-dodd-franks-bounty-provisions.html

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Comments

Unfortunately, the real need to allow whistle-blowing to exist will get crushed by the powers that be under guise such as WikiLeaks debacles.

Our federal system of justice is flagrantly and blatantly applying the Law in an arbitrary & capricious manner. Even former AG Ashcroft rebuked cronyism and corruption within the federal systems of justice by both the Dept of Justice and the Courts (doing so at the Hague).

Where this great blog and others should be making note of the assaults upon our Constitution by public servants; it is forced to a decorum level that is disheartening and detrimental to the overall good of society.

You guys our our gate-keepers and our Democratic society is in more need of your Republic roots than ever before. Because the powers that be are stealing our American soul one liberty at a time - while your eyes are not staying wide open!

Posted by: Laser Haas | Dec 2, 2010 3:40:25 PM

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