today’s wsj reports over 1500 public corporations restated earnings last year and that we’re on track to beat that number this year. the article discussed how hard it is to get executives to return the bonuses.
too bad i cant ever get the SEC to listen to my proposal which would solve all this. i’ll restate it for posterity here:
create a new reg similar to the 13G short swing profit rule which would require insiders to disgorge profits earned during periods of significant earnings mis-statement. this would take the burden of proof away and simply require corporate insiders to return profits they never earned anyway.