Go After The Gatekeepers

For every commentator who believes that Congress has gone too far in passing corporate reforms, there is another who believes that Congress needs to take immediate additional action. In this column from CBS MarketWatch, the author argues that the PSLRA should be overhauled to make it easier for investors to bring suit and new reforms should be passed to address the failings of lawyers, accountants, and Wall Street firms to prevent fraud.

Quote of note: “The real problem is the lack of ‘vicarious liability,’ whereby institutional gatekeepers are held accountable for misdeeds as much as the organizations from which they supposedly protect the public.”