The Securities and Exchange Commission’s loss on its stock buyback rule is a warning for the agency to do its homework on cost estimates, as the regulator looks to wrap up other contested regulations.
The rule requiring more information on companies’ stock repurchases was thrown out after the US Court of Appeals for the Fifth Circuit found the SEC didn’t properly weigh the costs and benefits. The agency’s adoption of the rule, which was meant to shine a light on opportunistic buybacks, was arbitrary and capricious, the appeals court said.
The SEC under Chair Gary Gensler has been dealt a ...
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