Prospect of WikiLeaks Dump Poses Problems for Regulators
I wonder if the US public’s view will change with the release of the bank cables?
Prospect of WikiLeaks Dump Poses Problems for Regulators
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You’d think that bank executives would be quaking in their Gucci loafers.
But guess who may be even more nervous about the possible data dump?
Regulators in Washington.
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Of course, no one knows what information Mr. Assange actually has or how damaging it could be to any financial firm. In truth, it is hard to believe any e-mails could be that shocking. The scuttlebutt is that WikiLeaks will reveal documents in which bankers discussed how they duped a client, how they dressed up their numbers or even how they tried to pull one over on regulators. Sadly, perhaps cynically, that’s almost to be expected.
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Another difficult issue for regulators will be what to do if damning information is released. Can the S.E.C. or the Justice Department use WikiLeaks as a source to build a case?
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Legally, the government is allowed to use any publicly available information — as long as the government wasn’t involved in illegally obtaining the information itself. So prosecutors could potentially use any WikiLeaks information to subpoena bank documents and build a case around them.
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“It puts them in a terrible bind,” said Mr. Mintz. No matter how the government reacts, “there would be an appearance of a profound inconsistency. It’s less of a legal matter than it is an appearance issue.”