SEC whistleblower program

[UK]

https://www.bloomberg.com/news/articles/2023-11-15/nate-anderson-carson-block-become-sec-tipsters-for-cash-payouts?srnd=premium-europe

 

The practice is widespread, with big-name short sellers Nate Anderson, Kyle Bass and Carson Block among the tipsters. If the SEC investigates and levies a fine, a short seller can collect up to 30% of the proceeds. That’s on top of any profit they might make by betting on the stock’s decline. The whistleblower program is open to all comers — including short sellers, corporate insiders and random internet investors — and the would-be informants can’t get enough of it. They’ve flooded the agency with over 18,000 formal tips in the 2023 fiscal year. For perspective, that 12-month tally is double the total of all SEC enforcement actions over the past 10 years.

[SharperDingaan]

It would a lot better if they also published a card deck; a named bounty on each card, and each card/suite ranked. Competition to rank well on the deck, individual incentive to move up by informing on the guy above, and collective incentive to greater fame by raising the bounties on all. Yes, ABC was scum; but his bounty was only 100M, whereas mine is 150M! Then .... just let the market do its thing ... 

 

SD 

[Morgan]

19 minutes ago, SharperDingaan said:

It would a lot better if they also published a card deck; a named bounty on each card, and each card/suite ranked. Competition to rank well on the deck, individual incentive to move up by informing on the guy above, and collective incentive to greater fame by raising the bounties on all. Yes, ABC was scum; but his bounty was only 100M, whereas mine is 150M! Then .... just let the market do its thing ... 

 

SD 

Now that would be something! 

[ValueArb]

On 11/15/2023 at 7:03 AM, UK said:

https://www.bloomberg.com/news/articles/2023-11-15/nate-anderson-carson-block-become-sec-tipsters-for-cash-payouts?srnd=premium-europe

 

The practice is widespread, with big-name short sellers Nate Anderson, Kyle Bass and Carson Block among the tipsters. If the SEC investigates and levies a fine, a short seller can collect up to 30% of the proceeds. That’s on top of any profit they might make by betting on the stock’s decline. The whistleblower program is open to all comers — including short sellers, corporate insiders and random internet investors — and the would-be informants can’t get enough of it. They’ve flooded the agency with over 18,000 formal tips in the 2023 fiscal year. For perspective, that 12-month tally is double the total of all SEC enforcement actions over the past 10 years.

 

They should give priority to tips from known short sellers. There are certainly cases where the short sellers are off base, but overall their record is impressive.