Via Up North News:
Prompted by the closure of the paper mill in Brokaw a decade ago, the SEC plans to tighten rules on secret stock positions.
It’s been a little more than 10 years since Wausau Paper Co. closed its mill in the Marathon County community of Brokaw, putting 450 out of work and bringing new attention to how activist hedge funds can invade, infect, and incapacitate a hometown company. Now a Wisconsin senator has helped convince the US Securities and Exchange Commission (SEC) to tighten rules and reduce the likelihood that what happened to Brokaw could happen elsewhere.
Democratic Sen. Tammy Baldwin announced the SEC is seeking to add transparency to the way hedge funds have been secretly accumulating stock in a company, sometimes as “wolf packs” of multiple hedge funds that coordinate as a single group but buy shares individually in order to not trigger required disclosures.