We're going to take a break from investigating Glass-Steagall fetishism, to remark on this apparent change of heart from the Seattle Times's Jon Talton;
The Senate has passed the so-called JOBS Act. Now it goes back to the House for further debate. The legislation claims to roll back regulation that allegedly is making it harder for entrepreneurs to raise capital. Supporters say startups could more easily raise money from the general public. They would also face much less disclosure and internal audits than is now the case. It would also allow "crowd financing," such as through internet solicitations.
The danger of the JOBS Act is that it is yet another piece of deregulation coming on top of two downturns, the Enron-Worldcomm-HealthSouth debacle and the housing bubble/financial panic, that were caused by just such measures. Indeed, it seeks to return America to a 1920s-style anything-goes environment for stock sales.But that was in March, it's a whole new month (and someone has received a talking to?);
[Joseph] Schocken was a big Democratic donor, as well as president of Broadmark Capital, a Seattle boutique merchant bank that focuses on emerging companies. And he had something to say.
"The single most important method to revitalize the current economy is to re-create the economic growth seen under the Clinton administration through short-term legislation meant to 'unclog' the initial public offering (IPO) market."
Three years on, President Obama paid attention and met with Schocken. The white paper inspired some elements of the JOBS Act, signed into law last Thursday at a Rose Garden ceremony that Schocken attended.
....If the JOBS Act really focuses more capital to productive, job-creating enterprises a la the 1990s it will be a major achievement. Even more so if it helped grow companies to address challenges in renewable energy, infrastructure and health.