CBS MarketWatch’s Founding Editor Resigns After SEC Probe

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(Updated: MarketWatch’s stock dropped about 10 percent in late trading after the news) Shows why it is very important to develop more regulation among the financial journalism/analyst community…anytime these quasi-analyst, quasi-journalists come anywhere near real journalism or even objective analysis, however you may want to define it, it reeks trouble…

Now to the actual news: Thom Calandra, the founding editor of CBS MarketWatch, who retired last year and was writing “The Calandra Report” subscription newsletter for the site, has resigned from the company amid an internal probe into his trading activities that was sparked by a query from the Securities and Exchange Commission.

According to the company, Calandra told MarketWatch.com executives in late December that he received a letter from the San Francisco office of the SEC. The agency asked for records of his personal stock trades, copies of his newsletter and copies of the e-mail alerts he occasionally sent to his subscribers. MarketWatch.com launched an internal investigation the following day.

MarketWatch.com said in a press release that it would discontinue the newsletter and provide prorated refunds to subscribers.

TheStreet.com: Calandra’s lawyer, Dana Welch, said her client is cooperating fully with the SEC but has declined to provide MarketWatch.com with certain “private documents.” Welch said the SEC inquiry didn’t name any specific trades Calandra had made and said he was resigning because of “stress.”

WSJ/DJ: Mr. Calandra was governed by looser restrictions than MarketWatch’s news reporters, MKTW CEO Larry Kramer said. “He came out from under being a news reporter,” Mr. Kramer said. “We said we wouldn’t feel it would be right to hold him under the same restrictions our journalists are under. We felt his subscribers would want him to be a trader.”

Related:

CBS MarketWatch’s Founding Editor Launches New Subscription Report, Retires as Editor

Why Analysts Can Never Become Journalists

TheStreet.com Forms Research Unit

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