Supreme Court gives challengers of the PCAOB an empty victory

The WSJ and other news outlets are reporting that the U.S. Supreme court ruled that the PCAOB is unconstitutional. From what I can tell, the ruling basically changes the structure of the PCAOB so now directors can be fired at will instead of "for cause" as before. In any case, the news reports are saying that the PCAOB can continue operating as is. The main change is that the directors have less job security. Talk about anti-climactic!

Skilling and the Supreme Court

The WSJ just reported that the U.S. Supreme Court has ruled that at least part of Skilling's conviction in the Enron fraud case needs a closer look. The article is quite short right now but the key quote is as follows:

The justices sent the cases back to two different lower courts to determine whether portions of Skilling and Black's convictions should be thrown out.

An AP news release explained further that:

Skilling and the Supreme Court

The LA Times has more information on the Skilling appeal to the Supreme Court. Based on this article, it appears that Skilling has a good chance of getting a reduced sentence because of a vague law called the "honest services" law. Whether he has a chance of being set free is unclear in my opinion. Here are a few key quotes:

The justices, both conservatives and liberals, agree on the principle that a criminal law must clearly state what is a crime. And the law that makes it a crime to "scheme . . . to deprive another of the intangible right of honest services" is anything but clear.

During Monday's argument, a lawyer for Skilling said that under the government's approach, it could be a crime for an employer to use an office computer for his personal use.

... It was the third time in recent months the justices have voiced doubt about the "honest services" law. However, even if part of Skilling's conviction were overturned, government lawyers say some of his conviction for securities fraud should stand.

Could Skilling be set free?

Today's WSJ reported that the U.S. Supreme Court has agreed to hear arguments that Jeffrey Skilling's trial for fraud at Enron was not fair since it took place in Houston. The juror selection process appears to have been weak. I guess we'll have to see if Skilling will be set free by the Supreme Court.