As yet another fraud investigation ramps up, and executives get fired, and indictments will soon get handed down, the WSJ deserves kudos for the entire backdating of CEO Options mess (See CEO Options: Luck — or something else?).

They broke the story, and started the whole ball of wax rolling . . .  Nicely done.

(Now please stop burying killer columns on Saturday)

>

UPDATE: May 19, 2006 5:23pm

In the comments, Microcap Speculator correctly points us to Professor Erik Lie of the University of Iowa as the originator of this research.

Nicely done, Prof!

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

21 Responses to “Kudos to WSJ on Options Investigation”

  1. emd says:

    Agreed… it’s a shame the WSJ has to do the job of the SEC and other regulatory bodies, but I guess it’s really no surprise.

    Nice job WSJ. I’m sick of CEO’s ripping off the shareholders.

  2. Bob A says:

    speaking of investigations, maybe they could have a little chit chat with that nice Fed governor lady who helped fluff the market a few weeks back.

  3. Sam says:

    Look at the August and November VIX calls trading 3 points below intrinsic value. Disgusting! The hucksters who market this crap should be shot.

  4. jim says:

    Options are basically a losing game. I was thinking yesterday of the credit spread players who must be getting killed in this big downdraft. You know, the bull puts where you pick up a couple hundred dollars premium but are on the hook for thousands if the trade gets away from you.

  5. Nona says:

    emd,

    This is (yet another) example of the private sector doing the better job.

    I could tell you stories….

  6. Actually WSJ just bootstrapped the work of U of Iowa professor Erik Lie, who published papers on this a year ago:

    http://www.biz.uiowa.edu/faculty/elie/backdating.htm

    He deserves the kudos.

  7. Nona says:

    Microcap: Thanks for letting us know — it’s important to ensure that the right people get the kudos they deserve — and for providing the link.

  8. Larry Nusbaum, Scottsdale says:

    I am having a terrible time of convincing my brokerage firm of back-dating my YHOO stock from January 3rd, 2000, when I meant to sell it at $496.

  9. Investigation

    Investigation Catalyst is a new genre of self directing, collaborative IF you can see this text, se…

  10. GG says:

    welcome to wow gold—-buy wow gold sell wow gold we guarantee the lower wow gold price in the market, please contact with our live support for further details.lowest price, live customers support, flexible payment methods and instant wow gold delivery are the reasons that make us different from others.

  11. 翻译公司 says:

    In better news they’ve tightened the standards making non-obviousness a higher bar. What effects these have in practice remains to be seen. oktrans.cn