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SEC Chief Mary Schapiro says the explosion of social media has complicated the ability of regulators to successfully bring insider trading cases.At a recent gathering of reporters hosted by the Christian Science Monitor, Schapiro indicated the agency was sometimes stymied in its investigations by the fleeting nature of conversations on social media.
The ability to reach millions quickly, cheaply and easily “creates opportunities for mischief,” she said.
And apparently with impunity.
“Because we are very reliant when we do investigations on documentation, on e-mails, on telephone calls that might be taped by trading desks or by others, to the extent some of this [social media communication] is very ephemeral it makes it harder, I think, to build cases,” she said.
This would seem to belie the point of the Library of Congress’ decision in 2010 to archive ever Tweet ever, but maybe we’re missing something.