The Five Dumbest Things on Wall Street This Week

Doughnut Doings SEC checking in

3. Doughnuts to You

The Securities and Exchange Commission thinks there may be something worth investigating at not-so-hot doughnut purveyor Krispy Kreme (KKD Quote).

Whoa! Who would have believed?

Well, the Five Dumbest Thing Research Lab, actually.

We can't say we're shocked by Krispy Kreme's Thursday disclosure that the SEC is conducting "an informal, non-public inquiry" of Krispy Kreme's franchise reacquisitions and its previously announced reduction in earnings guidance.

The research lab, you may recall, puzzled over Krispy Kreme's May preannouncement. If, as Krispy Kreme explained, the low-carb craze was to blame, why, we wondered, would the effect hit Krispy Kreme's different retail channels so unevenly?

Others at TheStreet.com also have raised flags about Krispy Kreme's purchase of franchises from former directors last year.

We can't wait to see the results of the SEC's inquiry. We're always on the lookout, you see, for the hole truth.

4. Oh, Those Lazy, Hazy, Crazy Days of Fog Cutter

Finally, Fog Cutter Capital Group's (FCCG Quote) future got just a little foggier this week.

Fog Cutter, to refresh your memory, is the Oregon-based parent of the Fatburger restaurant chain, which, in its wisdom, has decided to pay its felonious CEO a $2 million bonus on the occasion of his going to prison.

If you're able to trade shares of Fog Cutter on the Nasdaq on Friday, it's not because the staff of the Nasdaq think it's a good idea. As Fog Cutter Capital reported last week, the Nasdaq made a "staff determination" last week to delist the company effective this Thursday.

Apparently, some folks at the Nasdaq were as uncomfortable as we were with the cushy, salary-plus-$2-million-bonus "leave of absence" agreement the company signed with CEO and controlling shareholder Andrew Wiederhorn as he prepared for incarceration.