But in this volatile market, virtually anything can be seen as material, from the health of the CEO to the chip sales in China. At better and more cautious companies, one result will be more strictures on the flow of information. And it's carved out an exception for the media covering business. The larger problem, however, is the temptation to think that by passing this rule, the SEC has finally leveled the playing field. In fact, it runs the risk of driving important communication underground, particularly in tough times.
Savvy analysts know how to pick up the mood and the tone of company executives.
And savvy executives know how to guide analysts without breaking the rules. Mr. Levitt, your proposal steps in the right direction. But no one should be fooled into thinking the problem of selective disclosure will go away. When investment banks and big institutional investors attend to the birth, marriage and divorces of public companies, nobody should be surprised when they retain an edge.