This case does not address fundamental questions of whether the aggrieved investors had (i) the right to obtain the information they requested and (ii) a legitimate expectation of receiving an honest answer. Another interesting question is whether the broker would be entitled to an honest answer if the broker had asked a customer, "How much are you willing to pay for these bonds?" The first question is important (whether or not the customers had a right to the information) because it goes to…

The departure of Commissioner Gallagher will be a loss to the financial markets. His practical understanding of how markets work has been invaluable. Most compelling was his  of the burdens that the Dodd Frank regulations imposed on the markets. That presentation provided evidence of the drag that the sheer volume of regulation (to say nothing of its "quality") imposed on the markets and the economy. See SEC Commissioner Gallagher Announces Updated Regulatory Chart (with Lofchie Comment…

It seems a bit odd that the United States appears to be so eager to share financial information with non-U.S. regulators. While there are certain reasons to share selectively, there are also reasons why it may be better not to share broadly.

To expand on Commissioner Giancarlo's remarks about government-created "risk": governments create problems for the markets partly because government action can take place on such a grand scale, so suddenly and with so little regard for ordinary economic considerations. One example that is relevant to today's news, regarding increased capital requirements for forex transactions, is the action of the Swiss government with respect to its currency, which precipitated the recent dislocation in…