SEC Refuses Grassley Request

June 16th, 2011
in econ_news

magnifying glass Econintersect:  According to a letter released last Friday by the SEC (Securities and Exchange Commission), the agency has declined a request from Sen. Charles Grassley (R-Iowa).  In May Grassley had requested the SEC records of how they handled information received about 20 instances of suspicious trades at SAC Capital Advisors.  The SEC cited confidentiality.  In dispute is the handling of referrals regarding SAC trading that were made by FINRA (Financial Industry Regulatory Authority), which is a self-regulation entity for Wall Street firms.

Follow up:

From the Wall Street Journal, quoting a letter from Robert Khuzami, director of enforcement at the SEC to Sen. Grassley:

"In order to protect confidential and nonpublic investigative information, we generally do not comment on the status of investigations or related referrals and, in turn, are not providing information concerning the specific Finra referrals you identified."

Grassley issued a statement in response, saying the SEC tresponse was not acceptable.   From the Wall Street Journal:

"I'm looking for the SEC to explain how it handled specific referrals. Did the agency review them and find no credible evidence of wrongdoing? Or are they sitting in a drawer because the agency ignored them?" the senator said in a statement Friday.

"My staff continues to analyze the referrals involving SAC Capital, and I'll continue to ask for answers from the SEC," he said.

From GEI News on June 7:

It now is reported by Thompson Reuters that the recent investigation of insider trading by SAC Capital Advisors, being conducted by Senator Charles Grassley (R-Iowa), is actually focused on the SEC.  Previous reports by Reuters had implied that Grassley was investigating the activities at SAC. 

Sources:  Wall Street JournalGEI News and Business Insider

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