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Outgoing SEC Chairwoman Mary Schapiro postponed the easing of strict advertising rules for...

Outgoing SEC Chairwoman Mary Schapiro postponed the easing of strict advertising rules for private placements - mandated under the JOBS Act - because she doesn't "want to be tagged with an anti-investor legacy," she wrote in an email to her replacement, Elisse Walter. "In light of all that's been accomplished, that wouldn't be fair, but it is what will be said."
Comments (3)
  • Tom Armistead
    , contributor
    Comments (5237) | Send Message
     
    She could have spoken up. Anyone who looked at it knew the JOBS Act was a travesty, as if bilking investors would create jobs. It hasn't worked in the past, witness the Financial Crisis, caused by bilking investors on RMBS and CDO's containing RMBS or synthetic collateral referencing RMBS.

     

    Far better from Schapiro's point of view to avoid making waves.
    2 Dec 2012, 08:42 AM Reply Like
  • JeffreyLangBoyd
    , contributor
    Comments (648) | Send Message
     
    Agree that the JOBS Act has the potential for abuse but we can't have administrative agencies writing laws (unless authority is delegated) or interpreting the law in a fashion that essentially allows them to do anything they like. Otherwise we wind up in situations like the MBIA split-up where businesses take advantage of captured or incompetent regulatory agencies for their own benefit.

     

    Expect that she was within her authority to delay the rules and if so then I'm glad as it gives potential investors the time to understand the laws and risks better. Moving fast isn't always the right thing to do, the MBIA split up sure shows that.
    2 Dec 2012, 12:08 PM Reply Like
  • Tom Armistead
    , contributor
    Comments (5237) | Send Message
     
    JLB,

     

    Actually Dinallo is one the most enlightened and effective regulators I have ever encountered. He was the only one to say or do anything about CDS, offering to regulate them where they are insurance (when backed by an insurable interest), and to treat them as gambling contracts when not backed by an insurable interest. There were of course limits to what he could do on the issue, given CFMA.

     

    His approval of the MBIA transformation was an effort to restore the market for municipal bond insurance, an important consideration at the time. There was talk of bringing financial guarantors under TARP, although it didn't happen. He was well within his powers, and had a legitimate reason for doing what he did, in an effort to benefit the public interest.

     

    As a matter of fact I emailed Dinallo when he left office and congratulated and thanked him for his progressive outlook and effective regulatory actions.
    2 Dec 2012, 04:42 PM Reply Like
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