INVEST in America Act (S.A. 1833) vs. JOBS Act (H.R. 3606) Reed-Landrieu-Levin Amendment Mar. 15, 2012 Seven Essential Fixes to the House Bill The House bill would allow companies to advertise risky, less-regulated, unregistered private offerings to the general public using billboards along the highway,
NEW YORK TIMES March 15, 2012 Paving Path to Fraud on Wall St. By FLOYD NORRIS Nearly 20 years ago, Bankers Trust was riding high. The bank, based in New York, had become known as an expert in then-newfangled derivative securities, and the profits were
“Echoing Volcker himself, Americans for Financial Reform said the rule is aimed ‘precisely’ at the problems Smith alleges, and should provide fighting power from a lobby movement to soften the rule. ‘It is crucial that regulators are not intimidated or overwhelmed by this well-funded effort, but instead move ahead to implement the Volcker Rule that Congress intended – a strong rule that truly changes the toxic culture of proprietary trading,’ the group said in a statement. ‘Smith’s statement today, along with the mountains of evidence from the financial crisis, demonstrates yet again how much we need a Volcker Rule that works.’”
“Advocates for tough implementation of financial reform are saying that a head-turning op-ed from a former employee of Goldman Sachs proves the need for strict rules on the financial sector. In a blistering piece published Wednesday by The New York Times, Greg Smith announced his resignation as an executive director at the firm, while offering a lengthy takedown of what it has become. He argued that under current leadership, Goldman had placed its own profit-hunting ahead of the well-being of its clients, who he said were called ‘muppets’ behind closed doors. …Americans for Financial Reform issued a statement saying Smith had ‘laid bare’ problems that ‘remain pervasive at our largest banks.’ The proper prescription? Tough implementation of the ‘Volcker Rule.’”
The resignation of Goldman Sachs executive director Greg Smith and the striking op-ed he wrote in today’s NY Times reveal once again that the problems laid bare in the 2010 Congressional hearings on proprietary trading remain pervasive at our largest banks. Congress passed the Volcker Rule as a specific response to these issues. Indeed, the Volcker Rule – which reorients banking culture to serving customers by banning proprietary trading and the conflicts of interest it creates – is aimed at precisely the problems Mr. Smith describes at Goldman Sachs.
Fund Democracy sent a letter to Senate Majority Leader Reid, and Minority Leader McConnell supporting the CROWDFUND Act.
The AFL-CIO released an executive statement slamming the JOBS Act as a Wall Street scam.
Mary Schapiro, Chairman of the Securities Exchange Commission (SEC) sent a letter to Senators Johnson and Shelby voicing her concerns over the JOBS Act.
Read the letter here.
“It’s hard to believe that Democrats, who brought you the Dodd-Frank financial regulation act and the Consumer Financial Protection Bureau, are solidly backing a bill that would weaken or obliterate many regulations designed to safeguard investors. The bill, HR3606, sailed through the House Thursday with 222 Republicans and 168 Democrats voting for it. Only 23 members, all Democrats, voted against it. President Obama has endorsed the bill. The Senate is fast-tracking its own version, which could come to the floor Monday night. …AARP, Americans for Financial Reform, the North American Securities Administrators Association and the Council of Institutional Investors have strongly opposed all or some parts of the bill.”