U.S. Probe Into Stock Options May Widen

[Rose Siding]

More than 2,200 U.S. companies may have manipulated the timing of stock option grants to executives between 1996 and 2005, said a study by researchers whose work set off the current wave of federal investigations.

The study, released Saturday, found that 23% of all option grants from 1996 to Aug. 29, 2002, when the U.S. Securities and Exchange Commission tightened reporting regulations, were backdated or timed to coincide with low share prices. That would enrich executives by creating a built-in profit on options. Since the new SEC rules were implemented, the study said, about 10% of grants were manipulated.

The findings might expand the biggest U.S. investigation of corporate wrongdoing since the probe into improper mutual-fund trading three years ago resulted in $4.3 billion in penalties.

http://www.latimes.com/news/nationworld/nation/la-na-options16jul16,1,7887667.story?coll=la-headlines-nation

[cornermouse]

1. Prediction.

Look for the widening probe into stock options to abruptly narrow early Monday morning soon after the CEOs in question pick up the phone and call their pals George and the republican Congress if not sooner.

This is not the type of news they want getting out about their shenanigans. I think they'll have George and buddies kill the probe.

[acmavm]

2. I agree. It will be as effective as the probe into whether or not the oil

companies are manipulating the cost of gasoline at the pump right now.

[deminks]

3. Please see this related post as well.

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=1642796&mesg_id=1642796

The WSJ specifically points out a large jump in the stock option grants immediately after septembertheeleventh.

[xchrom]

4. i gave it a recommend.