PALO ALTO, Calif. (CNN/Money) -
Enough bashing of the Securities and Exchange Commission. These guys and gals are smart. Consider, for example, their new requirement that securities analysts certify in writing that they believe everything they write in research reports.
Brilliant. In fact, it's opened my eyes to a whole new way of doing business, not to mention making the world a better place. (See more on the regulation.)
The new regulation, passed unanimously Thursday by the four commishes that currently make up the commission, aims to restore trust in Wall Street. So enamored with its earlier brainstorm that CEOs and their chief financial officers certify the accuracy and honesty (not the same thing, of course) of their financial reports to shareholders, the SEC reckons there'll be a lot more truth telling if only analysts would attest to believing what they write.
You don't have to be a CPA -- or even a congressman -- to see that just getting these folks to swear that they aren't fibbing will make Wall Street work a whole lot better.
In fact, why stop there?
Let's start with me. I vow, from this point forward, that I believe absolutely everything I write. After all, you probably couldn't be sure before. From now on, when I believe what I'm writing, I'll say so. If I don't, perhaps you'll know I'm just having fun with you or that my evil twin made me opine in a certain way.
And I'll take it a step further. I'm going to make it my standard operating procedure to ask everyone I interview if they believe what they say to me. Imagine how this might go:
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Company official: "I am totally confident that the strategy I've just laid out will be exactly the tonic this company needs to get out of the Dumpster."
Me: "No, seriously, do you really believe that?"
Company official: "Well, I'm glad you asked that excellent question, because, in fact, no, I don't believe a word of what I've just said. Actually, I think we're toast."
Me: "Wow, I'm glad I asked, too!"
Think of the possibilities
This SEC thunder stroke is applicable far beyond the hallowed journalistic/analytical setting. Salespeople ought to end their pitches to potential customers with a certification that they believe everything they've just said about the merits of their product.
Doctors, too, might not only deliver a diagnosis to patients but also the verification that they believe it. After all, just because it sounds good ... I'm sure parishioners would feel that much better about their minister's sermons if a re-affirmation of belief followed. There's even a way to pre-empt this nasty war in Iraq: Ask the Iraqi generals to certify that they believe what they're telling the U.N. inspectors. After all, if they believe there are no weapons of mass destruction, shouldn't we as well?
The media are so cavalier when they refer to the SEC as a "troubled" agency beset by "very significant problems." I think the agency charged with being the shareholders' advocate is onto something.
I don't just think so, I believe it too. Really, I do. Honest.
Adam Lashinsky is a senior writer for Fortune magazine. Send e-mail to Adam at lashinskysbottomline@yahoo.com.
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