Note that they pay modest fines compared to what revealing the information might cost. Very intelligent economic behavior.
FIRMS FINED FOR NOT FOLLOWING E-MAIL RETENTION SCHEDULE The Securities and Exchange Commission has fined five major brokerage firms (Deutsche Bank, Goldman Sachs, Morgan Stanley, Salomon Smith Barney, and U.S. Bancorp Piper Jaffray) $1.65 million each for failing to keep employee e-mail for the required retention period. The SEC examines such mail to find cases in which brokers have rated stocks positively and given it a "buy" recommendation to the public, while in private correspondence revealed complete contempt for the same stock. The commission says, "The record-keeping rules are a keystone of the surveillance of brokers and dealers by commission staff and the security industry's self-regulatory bodies." (San Jose Mercury News 4 Dec 2002) http://www.siliconvalley.com/mld/siliconvalley/4661957.htm -- Michael Perelman Economics Department California State University [EMAIL PROTECTED] Chico, CA 95929 530-898-5321 fax 530-898-5901
