Tuesday, January 3, 2012

Will 2012 be the year of the bounty hunter

The Economist has an interesting piece forecasting that 2012 will be the year of the bounty hunter.  I agree.  Here is an excerpt:
Governments, in a fiscal pickle after bailing out their banks, will devote more effort to stamping out the types of fraud that pillage the public purse (in Medicare, say, or military procurement). Financial regulators, having failed abysmally to root out wrongdoing before 2008, will increasingly look to outsource policing to corporate sleuths and insiders who are closer to the action. Tips are by far the leading source of fraud detection (see chart).
This will be most apparent in America. The Dodd-Frank Act, passed after the crisis, offers whistleblowers strong protections from retaliation and bounties of up to 30% of awards resulting from their tip-offs. The measures, which went into effect in August, “could be a game-changer because they turn everyone into a potential whistleblower,” says Gary Aguirre, who exposed the soft treatment by the Securities and Exchange Commission (SEC) of Wall Street bigwigs in an insider-trading case. All the SEC, which will administer the programme, has to do is “be patient enough to listen,” he adds.

No comments:

Post a Comment