One of the country's biggest managers of pension funds is concerned that corporate insiders might be getting a deal that's a little too good to be true, and has registered a complaint with the Securies and Exchange Commission.
According to the Wall Street Journal, the Council of Institutional Investors – a nonpartisan organization which comprises some $3 trillion in pension investments on behalf of public, private and union pension funds – asked the SEC in late December to consider the improprieties of executives who've profited rather heavily from trading their own stock in advance of big news about bad times for their own companies
The CII's letter, sent Dec. 28, asks interim SEC Chairman Elisse B. Walter to examine the potential misuse of trading plans that allow company insiders to trade their company stock without providing a 30-day notice, especially in cases of major business changes that could considerably raise the values of those shares.
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