When the SEC subpoenas journalists’ sources
By Felix Salmon
Henry Blodget, like all other right-thinking individuals, is appalled at the SEC recapitulating its David Einhorn let’s-shoot-the-messenger errors with its subpoena of 37,000 documents from Sam Antar. But at the same time, Blodget doesn’t seem concerned about the way in which the SEC has included emails to journalists among the documents it’s asking for:
Importantly, however — and to the SEC’s credit — the SEC is NOT trying to obtain those emails by subpoenaing the reporters themselves. The SEC is instead attempting to retrieve the emails to journalists from the targets of the investigation themselves…. more here.
Blodget seems to think that the only good reason to keep journalistic communications from the SEC is to prevent journalists from having to give up their anonymous sources. But in fact there are lots of other good reasons to keep journalistic communications some kind of privileged status, as the SEC itself recognizes:
Freedom of the press is of vital importance to the mission of the Securities and Exchange Commission. Effective journalism complements the Commission’s efforts to ensure that investors receive the full and fair disclosure that the law requires, and that they deserve. Diligent reporting is an essential means of bringing securities law violations to light and ultimately helps to deter illegal conduct…
Subpoenas should be negotiated with counsel for the member of the news media to narrowly tailor the request for only essential information…
