Investors seeking redress from third parties accused of aiding companies to defraud shareholders suffered a blow on Wednesday when the Bush administration came down against the plaintiffs' bar and in favour of companies in a landmark case heading to the Supreme Court.This is quite a complicated issue but any company that helped another defraud the public should be held to account if it can be proved in a court of law. This decision makes Wall Street that much closer to Las Vegas.
The development is also a blow for Enron investors who have sued the defunct energy company's bankers - including Merrill Lynch, Barclays and Credit Suisse – for allegedly helping Enron executives carry out the accounting fraud that eventually destroyed the company.
It is an awkward development for Securities and Exchange Commission chairman Christopher Cox, who had urged the US solicitor general to side with investors in the case, known as Stoneridge vs. Scientific Atlanta.
Wednesday, August 15, 2007
Bush Administration Sides With Companies Over Investors
Is there anyone who still thinks the Bush administration cares at all about regular people?