Free Speech for Me, But Not For Thee

by | Nov 26, 2002

The financial media is in an uproar over proposed new New York Stock Exchange and National Association of Securities Dealers rules that would require stock analysts to stop talking to reporters who didn’t include mandated disclosures when the analyst is quoted in print. Regulations to rein in “tainted” Wall Street stock research — the very […]

The financial media is in an uproar over proposed new New York Stock Exchange and National Association of Securities Dealers rules that would require stock analysts to stop talking to reporters who didn’t include mandated disclosures when the analyst is quoted in print.

Regulations to rein in “tainted” Wall Street stock research — the very regulations that the media has been hollering for all — year have come back to bite them. The issue is simple. Under new rules put in place this year, stock analysts must disclose their own and their firms conflicts of interests in their reports.

Now the regulators are trying to close a loophole: talking the press is just another way of making research available to the public, so the same disclosure rules apply. The regulators are now saying that if a particular newspaper won’t print the disclosures, then the analyst can’t talk to that newspaper. Is that so different that saying that if a particular printer of research reports refuses to print the disclosures in the footnotes, the analyst has to find another printer?

But to the media it’s nothing less than an assault on the First Amendment. The New York Times‘ Floyd Norris broke the story on Friday with an an apoplectic column, writing,

“If a newspaper won’t print information that the New York Stock Exchange thinks investors should know, then perhaps that paper’s reporters should not be allowed to talk to analysts.

Don Luskin is Chief Investment Officer for Trend Macrolytics, an economics research and consulting service providing exclusive market-focused, real-time analysis to the institutional investment community. You can visit the weblog of his forthcoming book ‘The Conspiracy to Keep You Poor and Stupid’ at www.poorandstupid.com. He is also a contributing writer to SmartMoney.com.

The views expressed above represent those of the author and do not necessarily represent the views of the editors and publishers of Capitalism Magazine. Capitalism Magazine sometimes publishes articles we disagree with because we think the article provides information, or a contrasting point of view, that may be of value to our readers.

Have a comment?

Post your response in our Capitalism Community on X.

Related articles

Are the Democrats betraying Israel?

Are the Democrats betraying Israel?

Both Biden and his predecessor, President Barack Obama, promised that they had Israel’s back, but it now appears that they are painting a target on its back at a time of its greatest vulnerability.

Memorial Day: What We Owe Our Soldiers

Memorial Day: What We Owe Our Soldiers

To send soldiers into war without a clear self-defense purpose, and without providing them every possible protection, is a betrayal of their valor and a violation of their rights.

No spam. Unsubscribe anytime.

Pin It on Pinterest