Taking 503 words to say nothing
On October 3, I wrote about Jonathan Schwartz's letter to the SEC regarding an update to Reg FD (Regulation Fair Disclosure). In a letter to SEC Chairman Christopher Cox, Sun's CEO made a compelling case for updating the guidelines in light of technology advances in recent years. It took a month, but Schwartz finally got a response - sort of.
Cox posted his response on Schwartz's blog yesterday and it is classic bureaucratic jive. Cox uses 503 words to say absolutely nothing - he thanks Schwartz for the letter and acknowledges that the world is changing. Wow, stop the presses! He never says "yes" or "no" to whether or not Reg FD should be changed. Deep in the fourth paragraph he does say if the rules are to be changed it will need to be determined if effective means exist "to guarantee that a corporation uses its website in ways that assure broad non-exclusionary access." Of course those means exist - we don't need an expensive, taxpayer-funded blue ribbon panel to figure that out. Just as the original law made very clear what communication channels constitute fair disclosure, an update could make equally clear how corporations would be required to maintain open access to all material information.
Cox offers one other question to be answered - he'd like to know "the extent to which a determination that particular methods are effective in that regard depends on the particular facts." Huh?!! This reminds me of a bit from comedian Kathleen Madigan - she once pointed out how Ross Perot would utter some bizarre, indecipherable phrase during a debate - this would bring everyone's brain to a screeching halt. Cox and Perot have alot in common.
Posted by John Moran on November 4, 2006 at 4:13 PM
