Backing a Whistleblower at SEC

The internal whistleblower who reported a questionable policy on document destruction at the Securities and Exchange Commission will be vindicated by the SEC inspector general, according to inside sources quoted by The Wall Street Journal in the paper's weekend edition.

Longtime SEC enforcement division employee Darcy Flynn had gone public this summer with charges that the independent regulator had a policy that involved destroying as many as 9,000 documents related to preliminary investigations involving companies that played active roles in the 2008 financial meltdown. The National Archives weighed in with criticism of the agency's approach, and the IG has reportedly concluded that at least some of the documents should have been preserved.

IG David Kotz had promised a report by September, and the fruits of his labor are now reportedly circulating among SEC officials for release this month.