The Los Angeles Times highlighted a little reported, yet critically important piece of Wall Street Reform:
Tucked in the massive bill is a provision that for the first time extends a concept long applied to government contracts to the private sector. It gives whistle-blowers a mandatory 10% — and as much as 30% — of what the government recoups in fines and settlements in financial fraud cases. These can include insider trading, false earnings reports and classic Ponzi schemes…
Some corporate lawyers say the bounty provisions are the most important but least noticed parts of the new law. They have been overshadowed by the focus on new regulations for banks and the new consumer protection agency.
Cash for whistle blowers. This provides an incentive for whistle blowers to expose corporate wrongdoing.