39-year old David Einhorn runs a hedge fund with assets under management of $5 billion, but he isn't content with that. Today's Wall Street Journal reports (subscription required) on his new book, Fooling Some of the People All of the Time: A Long Short Story, detailing his public crusade against Allied Capital (NYSE: ALD), which he has accused of fraudulent accounting. Mr. Einhorn is short the stock.
In the book, he also lashes out at the SEC, which has been the target of criticism from fraudsters, fraud-busters, and the anti naked short selling baloney brigade.
Einhorn told the Journal that "The SEC is run by a corporate advocate, not an investor advocate, so investors are getting a false sense of security."
That's a pretty serious criticism, but it seems to be supported by some of the commission's recent actions, including its decision to make it even tougher for investors to hold underperforming directors accountable.
I ordered a copy of the book a few days ago and will post a review as soon as possible.
David Einhorn lashes out at the SEC
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Reader Comments (Page 1 of 1)
4-28-2008 @ 3:53PM
B. Harrison said...
Well, hasn't that been a criticism of the SEC for quite some time. The American stockholders need to pressure their Congressmen to get these matters resolved.
We're being taken to the cleaners on a daily basis by unscroupulous corporate managment and Congress doesn't do a darnthing about it; they have oversight and control over the SEC.
5-03-2008 @ 7:01PM
Al Swearengen said...
I'm 3/4 of the way through his book, and I've now begun researching various names from within...especially a certain professor from Harvard Business School.
Anyone who is serious about investing should read this book!