When biz journalist's sources get subpoenaed

Felix Salmon of Reuters writes Wednesday about the recent action by the Securities and Exchange Commission to subpoena e-mails between sources Sam Antar and Barry Minkow and business journalists.

Salmon writes, “If the SEC were to ask Antar for emails he sent to his lawyer, he could simply refuse, on the grounds that such communications are protected. And the SEC itself is happy to admit that communications with journalists deserve some measure of protection, and that the SEC shouldn’t simply go on massive fishing expeditions in such circumstances: instead, it should be very specific about exactly what information it wants.

“The Sam Antar subpoena, however, is obviously a fishing expedition: it even includes documents from Antar’s recent divorce. And it nullifies a huge amount of the welcome sentiment behind the SEC’s policy on asking for information from journalists, if the SEC can ignore all those guidelines when asking for information from journalists’ sources.

“The SEC should encourage communication between sources and the press, using the press as a kind of adjunct enforcement mechanism. Instead, this kind of activity is prone to making sources even quieter. And that doesn’t serve the SEC at all.”

Read more here.