Richard J. Hunter, Jr. & Philip Frese, The Genesis of an Ethical Imperative: The SEC in Transition, 25 Gonz. L. Rev. 9 (1989).
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This article is a comprehensive study of the genesis of judicial, legislative, and administrative law and rule making in the development of proscriptions in the area of insider trading, a recent and heinous phenomenon of modern securities fraud. The article focuses both on the practical development of applicable laws and administrative rules and also on the ‘ethical imperative’ created by the recent controversy. The article analyzes the important case precedents as well as two legislative acts: The Insider Trading Proscription Act of 1987 which was not adopted by the Congress but which would have provided the first concrete legislative definition of ‘insider trading,’ and the Insider Trading and Securities Enforcement Act of 1988, which significantly increased the penalties for illegal trading practices and which was signed into law by President Reagan in October of 1988.'”