Who Is Rep. Grimm Trying to Protect? Certainly Not Whistleblowers

By Joe Newman

It's always fun to break down political spin. Take Rep. Michael Grimm (R-NY) on his proposed bill to gut the whistleblower protections that were included in the Dodd-Frank financial reform law. Here's Grimm's spin, according to Marketwatch:

The Dodd-Frank Act allows a whistleblower to go directly to the SEC without the company being notified and provides the employees with financial incentives, Grimm said.

“The Dodd-Frank law disincentives employees from reporting fraud internally,” Grimm said.

So under Grimm's bill, an employee who has knowledge or evidence of a firm's criminal activity should bring their information first to their company's own internal investigators before notifying the Securities and Exchange Commission. But Grimm's bill goes even further in intimidating whistleblowers and bending the rules in Wall Street's favor: after a whistleblower informs the SEC or the Commodity Futures Trading Commission about illegal activity, the SEC and the CFTC would have to notify the implicated firm before beginning any enforcement action.

Seriously? We can hear those paper shredders revving up right now. POGO wrote a letter to the Subcommittee on Capital Markets today outlining its concerns with Grimm's draft bill.

Can you imagine if these rules were in place, for say, organized crime? How many informants would come forward if the FBI was required to tip off the crime boss before beginning its investigation?

So who is Grimm looking out for?

“Rep. Grimm is doing the bidding of Wall Street lobbyists who want to get rid of the whistleblower programs entirely,” POGO Executive Director Danielle Brian said. “Taxpayers, investors and shareholders are the ones who will suffer if whistleblowers are kept from exposing wrongdoing on Wall Street.”

Joe Newman is POGO's Director of Communications.

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Comments

[Peter]

Money, Money, Money.....

Two freshmen from the nation's financial capital, New York, were appointed to the committee as well. Rep.-elect Michael Grimm, who won election from Staten Island, raised $222,350 from the finance sector. This amounted to 24 percent of the total money that he raised for his campaign, the largest percentage from the finance sector of all newly appointed members. Grimm defeated Democrat Michael McMahon, who also sat on the Financial Services Committee. Rep.-elect Nan Hayworth, hailing from upstate New York, raised $204,215 from the finance sector.

The Financial Services Committee has always been a coveted spot for lawmakers facing tough reelection races in expensive districts. These lawmakers are in need of large campaign contributions and the finance sector is the biggest contributing industry of all. Since 1998 the finance sector has contributed nearly $2 billion to federal election campaigns.

[Peter]

From the Congressman's website: Why go undercover if he believes self reporting works so well?

UNDERCOVER FBI AGENT TACKLING CORRUPTION IN POLITICS & BEYOND
It was during his tenure with the Fraud Squad that Michael started his undercover career becoming the first FBI Agent to successfully infiltrate Wall Street. Posing as a hedge fund manager during Operation Wooden Nickel, arguably one of the most successful White Collar undercover investigations in the history of the FBI, Michael obtained evidence against more than 50 individuals committing frauds spanning the spectrum from stock manipulation and currency scams to money laundering. After establishing a reputation as a reliable, "go-to" undercover agent, Michael was enlisted to investigate corrupt politicians in New Jersey, corrupt police officers in Florida, and various other cases. Michael has relentlessly fought corruption and served our country proudly.

[Gnus2me]

I'm shocked, shocked I say, that a republican congressman wants to eviscerate whistleblower protections.
I can't wait for the amendments to Grimm's bill calling for the tar and feathering of anyone reporting a suspected crime by a regulated industry.
But, as a "compassionate conservative" Grimm plans to offer the tar at a low, low price of $500 - in advance.

[Gregg S]

Let me tell you how the goverment handled my whistleblower complaint right from the beginning.After i made the call to the goverment they contacted my employer and had my employer conduct the investigation of my complaint.I know youll find this hard to believe but my employer reported back to the goverment and said they did not find any thing(imagine that).I contacted the goverment and stated (That makes about as much sence as letting the nazis investigate the holocaust. what answer do you think youll get were gilty i dont think so)The goverment even agreed with me.Two goverment investigators even stated they could not understand this.This was just the begining of what i am going through right now with the goverment.Two years out of work now just try and find another job after becoming a whistleblower.
My warning to whistleblowers KEEP YOUR MOUTH SHUT YOU HAVE ALMOST NO PROTECTION!
Do not do it to your family for it will tear you apart.

PROUD NAVY DAD

[Carol Czarkowski]

Sounds like Rep. Grimm is trying to invoke a system patterned after federal employee whistleblowing reporting requirements. And the results of my case certainly show what happens to a federal employee who follows all the rules and regulations in reporting fraud, waste and abuse within the federal agency where I worked.

[Gregg S]

I went through my employers chain of command first warning them of what i was finding with proof.Five weeks after blowing the whistle i was illegaly terminated and gave complete proof to the goverment and the way they handled it from the begining was a complete joke.Two years now out of work and just try and find work after blowing the whistle.
I know i made the right decision the only mistake was expecting the goverment to protect my job.
My warning keep your mouth shut or risk destroying you life.