We are already seeing the effects of the SEC "squeeze-play" on corporate america. The Qwest revelation yesterday was a by-product of the fact everyone has to come clean by 8/14.
I currently understand that the "squeeze" will work in the following three ways based on how a corporation acts on 8/14:
1. Present 100% clean books that the SEC will review and everything's peachy. The stock market treats the stock as "business as usual".
2. Admit crooked books and have the stock market slaughter the stock price. The corporation may not held on criminal charges but individuals could be liable.
3. Admit nothing and act like Clinton is still running the country. If the SEC finds anything, the stock is toast, the company and individuals are headed for the clink.
This plan rewards good corporate behavior, allows for some "corporate redemption" with the stock market meting out punishment, and really lays down the "SMACK" on those companies who don't get it.
This is my opinion why some executives and corporate boards are $h!tt!ng square ones right now. There's a new sherrif in town...
jriemer