vtec9

http://wikileaks.org/wiki/Whistleblower_ex...JP_Morgan?=dugg

News to anyone?

trainwreck

we can just tack that onto the long list in ways the ultrarich screw the small investor.

aklucsarits

The 10b5 plans are designed to allow company staff with large holdings of their companies shares or share options to set a predetermined share sale plan so that they can sell some (or even all) of their holdings to diversify their net worth. The sales are all planned and documented well in advance so that the share holder is relatively insulated from the claim or appearances of insider trading.

I don't understand what is so alarming about what's in the presentation you linked too. What is proposed in there that you think violates the letter or spirit of the 10b5 rules?

The most significant loophole in the 10b5 plans (something that link and the article does not mention) is that the plan participant can elect to remove themselves from the plan at nearly any time. So if 1 year ago, the holder had arranged to sell 100,000 shares in 2009 - but now the holder has information that leads them to believe that 2010 might be a great year for business, they can elect to pull out of the plan and hold those 100,000 shares through 2010. THAT is a loophole, albeit one that does not negatively impact other shareholders.

Andrew

sahtt

Sounds like insider trading to me, they use their knowledge to decide when to sell a position. I understand the concept on the surface-having too much of your investments in company stock is excruciatingly common and dangerous. But there are other ways to fix this by establishing penalties if say your 401k is over 33% the company stock. But they won't do that, it'll hurt THEIR stock prices.