Monday, September 1, 2008
SEC Subpoena
In February 2006, Greenberg and other journalists were served
subpoenas from the
Securities and Exchange Commission (SEC) demanding records of
phone and e-mail communications with sources for an investigation
of which the journalists were not the target. In a rare public
reprimand, SEC chairman Christopher Cox
said that he was not consulted prior to the issuance of the
subpoenas by the SEC's San Francisco office, and that the "subpoena
to a journalist which seeks to compel production of his or her
notes and records of conversations with sources is highly
unusual."
The subpoenas were harshly criticized by the media and by
First Amendment groups. In an editorial, The Wall
Street Journal said that "SEC scolds are harassing
journalists who report market-moving facts based on their daily
digging." The newspaper said "the journalists are suspected of
having sources who tell them things that they then share with their
readers or listeners. Where we come from this is called reporting,
or providing facts to investors who can then make more informed
decisions."[9]
Shortly after the subpoenas were disclosed, the SEC reversed course
and said it would not enforce them. The investigation concerned a
research firm called Gradient
Analytics, which was subsequently dropped.
Posted by Mahyar Hashemi, at 2:50 PM
