June 27, 2012
I am concerned that the so-called JOBS Act, due to its radical rollback of disclosure requirements and loosening of accounting rules for eligible IPOs, will create an economic disaster not unlike the Ownership Society movement did for the housing industry.
America's capital markets are the most trusted in the world BECAUSE OF THEIR TRANSPARENCY relative to capital markets elsewhere. Losing this trust would be a disaster for our country.
And, regarding the "crowdfunding" provision for creation of a virtually unregulated capital market through use of the social media: this sounds like a recipe for unsophisticated American investors (young families, isolated elderly folks) to lose their small nest eggs in ventures which have had to pass a greatly lowered bar regarding disclosure of their ability to do what they promise.
Where will be the safeguards of the reputation of American capital markets? Where will be the consumer protection against even more potentially vast losses accruing to the middle and even working classes of our Country?