June 5, 2011
From this Sunday's Wall Street Journal article by Al Lewis titled "An Economic Coma"
"The money needs to get to the small-business owners and entrepreneurs who actually create jobs. But somehow it's still just going to the financial parasites who have a vested interest in maintaining our economic coma"
This rule change appears to hurt small and new hedge funds who are still trying to raise enough capital to be profitable (and be able to afford to pay to stay compliant to the existing SEC rules.) It also limits individual investors with an arbitrarily too low net worth who want to invest and help the economy rather than just letting there money sit at some "big bank" or some "big mutual" fund's control.
This rule would only helps the "big banks" and the big wall street mutual funds and firms. It also gives investors who would fall under the new $2M rule less investment choice and will force them to stay invested with the "big banks" rather than having the choice to invest with smaller boutique hedge funds.
This proposal would hurt small hedge funds and small investors and help big banks and big wall street firms.
So please help small businesses by keeping the limit at $1.5M or lowering it.
Please do not raise the limit to $2M. Please do not change the rule so the value of a home can't be included in the net worth calculation. Please please help small business and small investors and do not raise the limit from $1.5M to $2.0M.
Or perhaps you could give an exception to the rule change for "small" hedge funds (e.g., under $50M in assets) as many states follow your rule change and force hedge funds registered with the state instead of the SEC to follow the SEC rules. So please keep in mind the small hedge funds and the small investors as this is important for our country and our future.