Who Can’t Raise Capital?: The Scylla and Charybdis of Capital Formation
نویسنده
چکیده
F years ago, the worst one could be called was a communist. Today, it likely is not flattering to be so referred to, but worse yet to be called a regulator. Regulators are found at all levels of government; one of the missions of government is, after all, to regulate for the greater good. But because opinions vary widely on just what is the “good” that is to be served, there is the Newtonian effect whereby each regulatory initiative produces an equal and opposite claim that harm, not good, is the end product of the regulator’s initiative. So it has been for several decades with the arcane, but economically significant, area of securities regulations. One can say with some credibility that securities transactions are among the most highly regulated in the economy. Not only do state and federal regulation of securities transactions coexist but also market intermediaries are further regulated by well–armed self–regulatory organizations. While the regulatory bodies share the common goal of investor protection, the Securities and Exchange Commission also has among its stated objectives the promotion of capital formation.2 Thus, it finds itself frequently faced with the conflicting tugs of investor needs and calls for less friction on capital formation and the operation of securities markets.3 And, most significantly, Congress has in recent years been attuned to the needs of business as the nation competes in an increasingly globalized marketplace. That is, today regulatory initiatives for securities markets occur within the red–hot crucible heated by growing concern that regulation increases capital costs for domestic firms and thereby places them at a profound disadvantage in an increasingly competitive global economy.4 But just where is the state regulator to be placed in this global economy? State blue sky laws long preceded the U.S. securities laws. Federal regulation
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تاریخ انتشار 2014