Senate votes to limit STOCK Act’s web-based publication of employees’ financial information
On Thursday, April 11, the Senate voted to roll back
the STOCK (Stop Trading on Congressional Knowledge) Act, limiting the
web-based publication of government employees’ personal financial
information. This action comes in response to a federal court ruling
that such publication violated employees’ right to privacy and a
critical report by the National Academy of Public Administration. “The court recognized that the federal employees have a
legitimate right to privacy regarding their personal financial
information and ruled that the federal government failed to identify a
compelling government interest that would justify posting that personal
information on the internet,” says Kathleen Clark, JD, government ethics
expert and professor of law at Washington University in St. Louis.
Controversial Sarbanes-Oxley provision important part of corporate reform
ParedesWith the final provision of Sarbanes-Oxley now in effect, lawyers are required to report corporate wrongdoing. Although many lawyers are concerned that this may breach attorney/client privilege, Troy Paredes, associate professor of law at the Washington University School of Law, says, “The requirement that lawyers report ‘up the ladder’ if they are aware of a material violation is an important part of the Sarbanes-Oxley reforms.” Paredes notes that lawyers are an important gatekeeper that the market depends on to help oversee management.