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.”