A senior senator launched an investigation into an arrangement in which the University of Michigan sells early peeks at its consumer-sentiment survey to a select group of investors through Thomson Reuters Corp.
Brody Mullins and John Carreyou of The Wall Street Journal write, “In a letter sent last week, Sen. Charles Grassley (R., Iowa), the top Republican on the Senate Judiciary Committee, asked the university to answer questions about the arrangement and to provide a copy of the contract and any other similar contracts it might have entered into.
“‘My concern is that the [university’s] decision to allow preferential access’ to the report ‘may not be in the public interest,’ Grassley wrote.
“Rick Fitzgerald, a University of Michigan spokesman, said the university had received Grassley’s letter and was reviewing it. Grassley asked the university to respond by July 26.
“Last week, Thomson Reuters agreed to temporarily suspend its practice of sending a two-second advance release of the University of Michigan survey to high-speed traders who pay Thomson Reuters a premium for the service amid an investigation by the New York attorney general into whether the arrangement complies with state laws. The Wall Street Journal highlighted the practice last month.”
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