Reform Wall Street with a Whistle blower provision

The Wall Street reform bill has been signed into law by President Obama. Yet the vast majority of those who support the Obama administration’s call for tighter regulation of banking and investment are probably unaware of a whistle-blower provision, reports the Los Angeles Times. Private sectors could be responsible for catching any person who beaks the rules causing them to get 10 to 30 percent of fines or settlement fees that the government receives. Source for this article – Wall Street reform includes a new whistle-blower provision by Personal Money Store.

Ponzi and insider trading stopped with whistle-blower provision

As outlined by the Times, citizens will “provide the Securities and Exchange Commission with original info that reveals the fraud and leads to a successful recovery,” with the whistle-blower provision. Lawmakers hope this provision could be enough to help give strength to Wall Street although many see some difficulties with the plan. For instance, if an employee is more likely to go to the SEC instead of to internal management if they spot something suspicious, a potential climate of fear scenario could erode business acumen. There also could be a whole new slew of lawsuits that may have to be dealt with also. Walter Olson says that either way, a “society of paid informants” can be the result.

Trying to get ‘fast’ cash as a whistle blower

It would have been very interesting if this provision had been here while the SEC and Goldman Sachs settled for $ 550 million. If a whistle-blower had turned in the tip leading to Goldman Sachs’ censure, that whistle-blower would have made at least $ 55 million in cash until payday loan. Stephen Kohn of the Washington-based National Whistleblowers Center says the money gets back to all the taxpayers. We do remember that “quick cash” is relative mostly. Long legal proceedings will follow, but if whistle-blowers’ tips pay down, they’ll have their cash til payday when the government collects from the guilty corporation. $ 1 million could have to be recovered before the whistle-blower provision could be able to become an informant.

Additional information at these websites

Los Angeles Times
latimes.com/business/la-fi-reform-whistleblower-20100723,0,6099636.story
An example of whistle-blowing in high government
youtube.com/watch?v=xq8aopATYyw