Holder’s Whistleblower Proposal Omits Key To SEC’s Success


Eugene Goldman, a former SEC enforcement director, said any amendment to the FIRREA (Financial Institutions Reform, Recovery and Enforcement Act) whistleblower provision, as proposed by the Attorney General, should include deterrents against « false and reckless accusations, » given that some whistleblowers might « seek awards beyond the current cap.” Noting that the cap didn’t necessarily need to be increased, Mr. Goldman added, « I think the jury would be out that a $1.6 million cap is insufficient if FIRREA’s anti-retaliation provision is viewed as effective.”