Manne on insider trading as compensation
Henry Manne has a new version of the arguments he’s been making for years for insider trading as an efficient compensation mechanism. It’s Entrepreneurship, Compensation, and the Corporation. Here’s...
View ArticleThe taste for insider trading law
Steve Bainbridge responds to my post about insider trading as compensation with a suggestion that rules against insider trading are an example of a case “where mandatory rules are appropriate.” I was...
View ArticleSEC dismisses the Gupta case
Amid yesterday’s market turmoil it’s easy to forget about Rajat Gupta. He’s the guy whose suit against the SEC led a federal judge to put the agency under judicial supervision. Now the SEC has...
View ArticleCan insider trading combat accounting fraud?
Last year I suggested that regulators would better fight corporate fraud by letting those in the know trade on the information than through the complex whistleblowing rules like those in Dodd-Frank....
View ArticleCongressional insider trading
CBS is all hot and bothered about insider trading by Congress. Steve Bainbridge is not so sure it’s illegal. Neither am I, and I question whether it should be on policy grounds (see here, first...
View ArticleWhy do insiders trade illegally?
Not, as economic theory would predict, because they need the money, according to Bhattacharya and Marshall, Do They Do it for the Money? Here’s the abstract: Using a sample of all top management who...
View ArticleLet Congress trade!
I have previously discussed here and here the policy arguments against a broad ban on Congressional insider trading (this is apart from Steve Bainbridge’s serious problems with the proposed...
View ArticleThe Twitter campaign for the STOCK act
Professor Bainbridge is urging his readers to pressure Eric Cantor into dropping his opposition to pending legislation that would ban Congressional insider trading. But before you Twitter Cantor,...
View ArticleA Decision-Theoretic Approach to Insider Trading Regulation
Regular readers will know that several of us TOTM bloggers are fans of the “decision-theoretic” approach to antitrust law. Such an approach, which Josh and Geoff often call an “error cost” approach,...
View ArticleContemplating Disclosure-Based Insider Trading Regulation
TOTM friend Stephen Bainbridge is editing a new book on insider trading. He kindly invited me to contribute a chapter, which I’ve now posted to SSRN (download here). In the chapter, I consider...
View ArticleAnabtawi on Spring-loaded Options
Over at Professor Bainbridge’s place, Iman Anabtawi has some thoughts on the granting of “spring-loaded” options, an option granted at a market price that does not incorporate some favorable non-public...
View ArticleJenkins channels Manne
Today’s WSJ has a great article by Holman Jenkins on reporting on the backdating “scandal.” Larry is, of course, on the case. I would also — modestly — point out that much of what Jenkins says in...
View ArticleRevisiting Two Classics as the New Semester Begins
Last Friday was the first day of my Business Organizations class. We began with two articles that have profoundly influenced my thinking about the world in general and the business world in particular....
View ArticleInsider Trading: Sin or Crime? (or None of the Above?)
R. Foster Winans knows insider trading. A former author of the Wall Street Journal‘s Heard on the Street column, Winans was a key figure in an insider trading case that went all the way to the U.S....
View ArticleThe Nacchio Trial Begins
The insider trading trial of former Qwest CEO Joseph Naccio began yesterday. I’ve posted a couple of times (here and here) on Nacchio’s innovative defense, which the WSJ labeled a “black box” defense....
View ArticlePIPEs
I recently posted on SSRN one of the two articles I have committed to write for the Entrepreneurial Business Law Journal. It’s entitled PIPEs (note that I went with a “micro-title†and...
View ArticleSome Thoughts on the Nacchio Decision and Insider Trading
On the flight back from my spring break ski trip, I had a chance to read the recent Tenth Circuit opinion reversing the insider trading conviction of former Qwest CEO, Joseph Nacchio. Mr. Nacchio had...
View ArticleVerret on the Self-Defeating Bailout
My colleague JW Verret has an interesting take on the bank bailout at Forbes.com: This deal was intended to bolster public confidence in banks, while at the same time minimizing the cost of the bailout...
View ArticleLearning to Love Insider Trading
Today’s Wall Street Journal includes a terrific article explaining why insider trading should be deregulated. Following up on last week’s high-profile insider trading charges, George Mason economist...
View ArticleThe Collected Works of Henry G. Manne
I’m delighted to report that the Liberty Fund has produced a three-volume collection of my dad’s oeuvre. Fred McChesney edits, Jon Macey writes a new biography and Henry Butler, Steve Bainbridge and...
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