SEC's Cox comments on reports of journalist subpoenas
Mon Feb 27, 2006 10:07 AM ET
By Karey Wutkowski
WASHINGTON, Feb 27 (Reuters) - The head of the U.S. Securities and Exchange Commission on Monday responded to reports that the agency had subpoenaed two journalists for information in a stock manipulation investigation, saying the issuance of a subpoena is highly unusual.
"Until the appearance of media reports this weekend, neither the Chairman of the SEC, the General Counsel, the Office of Public Affairs, nor any Commissioner was apprised of or consulted in connection with a decision to take such an extraordinary step," SEC Chairman Christopher Cox said in a statement.
"The sensitive issues that such a subpoena raises are of sufficient importance that they should, and will be, considered and decided by the Commission before this matter proceeds further," Cox said.
According to news reports over the weekend, the SEC issued subpoenas on Feb. 7 to columnists from two Dow Jones & Co. (DJ.N: Quote, Profile, Research) publications, asking for telephone records, e-mails and other documents related to online retailer Overstock.com Inc. (OSTK.O: Quote, Profile, Research)
The SEC's investigation involves accusations by Overstock.com that stock-research firm Gradient Analytics Inc. negatively adjusted research after a hedge fund betting against the stock requested a change.
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