“House Republicans, Senate Democrats and President Obama have found something they can all support: a terrible package of bills that would undo essential investor protections, reduce market transparency and distort the efficient allocation of capital. …Dozens of legal experts and advocates for investors and consumers have written to Senate leaders warning that extensive revisions must be made to the House legislation for it to be even minimally acceptable.”
As the House takes up consideration of the JOBS Act, AFR and Consumer Federation of America wrote to members of the House in support of a handful of amendments that would make modest, incremental improvements in the legislation’s investor protections. The amendments cannot overcome the bill’s fundamental flaws, however. So, even if the amendments are adopted, CFA and AFR urged opposition to the overall bill.
As the U.S. House of Representatives prepares to vote this week on the JOBS Act, consumer and investor groups from around the country wrote to urge the House not to adopt this anti-investor bill. The legislation would roll back important investor protections, undermine market transparency, and, as a result, drive up the cost of capital for the small companies it purports to benefit. The groups warned that it is more likely to harm the economy than to produce sustainable jobs growth.
Last week, Senate Majority Harry Reid announced that the Senate would be developing its own jobs bill based on reducing barriers to capital formation. CFA and AFR wrote to the Senate detailing their concerns about the various “capital formation” bills. They warned that the bills, as drafted, threaten to undermine regulations vital to protecting investors and the integrity of the capital markets, and they urged the Senate to revise the bill to restore important protections.
Below is a sampling of recent articles that highlight the JOBS Act many flaws and explain why so many different groups and individuals have come out in opposition.
The following letters have been submitted by organizations in opposition to the bipartisan JOBS Act.
AFR sent a letter to the House Agriculture Committee urging members to support the full funding of the CFTC in President Obama’s proposed 2013 budget.
“Advocates on the left, however, are adamant that the ban remain in place, arguing that it forces banks to put up greater collateral to back up risky bets. ‘It is a form of firewall between swaps dealing and the rest of your operations, requiring separate capitalization,’ says Marcus Stanley, policy director of Americans for Financial Reform. ‘When you allow banks to do absolutely unlimited derivatives activities, it’s hard to separate banking from speculation.'”
AFR sent the following letter to House Financial Services Committee members, expressing concerns about three proposed bills that would undermine transparency and accountability in the financial system.
AFR sent a letter to the Senate, expressing concerns about a raft of bills that are harmful to economic and job growth.