JOBS act couldn't suck worse

RedskinRat · 04-10-2012, 05:50 PM

Obama's JOBS Act

The "Jumpstart Our Business Startups Act" (in addition to everything else, the Act has an annoying, redundant title) will very nearly legalize fraud in the stock market.
In fact, one could say this law is not just a sweeping piece of deregulation that will have an increase in securities fraud as an accidental, ancillary consequence. No, this law actually appears to have been specifically written to encourage fraud in the stock markets.
Ostensibly, the law makes it easier for startup companies (particularly tech companies, whose lobbyists were a driving force behind its passage) to attract capital by, among other things, exempting them from independent accounting requirements for up to five years after they first begin selling shares in the stock market.
The law also rolls back rules designed to prevent bank analysts from talking up a stock just to win business, a practice that was so pervasive in the tech-boom years as to be almost industry standard.
Even worse, the JOBS Act, incredibly, will allow executives to give "pre-prospectus" presentations to investors using PowerPoint and other tools in which they will not be held liable for misrepresentations. These firms will still be obligated to submit prospectuses before their IPOs, and they'll still be held liable for what's in those. But it'll be up to the investor to check and make sure that the prospectus matches the "pre-presentation."
The JOBS Act also loosens a whole range of other reporting requirements, and expands stock investment beyond "accredited investors," giving official sanction to the internet-based fundraising activity known as "crowdfunding."

Cannot wait for this dude to become an Ex-President.

That Guy · 04-10-2012, 06:59 PM

bad link.

RedskinRat · 04-11-2012, 11:13 AM

Quote:

Originally Posted by That Guy

bad link.

Fixed. It's Why Obama's JOBS Act Couldn't Suck Worse | Matt Taibbi | Rolling Stone

Thanks for letting me know.

firstdown · 04-11-2012, 12:28 PM

To be honest from what I have read not sure if the bill is as bad as he makes it out to be. Most all of the regulations that are passed only add layers of cost to the honest person/business. The people that want to rip you off will no matter how much regulation is passed.

12thMan · 04-11-2012, 01:47 PM

God bless Matt Taibbi, he's a solid blogger/journo. But the word "jobs act" is a bit of a misnomer. In a nutshell the bill allows small companies and start-ups to cut through the regulatory red tape to raise and attract capital. That's kinda of the gist of it. Is it a perfect bill? No. But has a perfect bill ever passed through Congress? Not since I've been breathing.

Secondly, the bill was championed by Eric Cantor and later gutted by Cantor. (that's another thread). Given the current environment, this is about as much as we're going to see get done between now and November.

04-10-2012, 05:50 PM	#1
RedskinRat Franchise Player Join Date: Feb 2004 Location: I'm in LA, trick! Posts: 8,700	JOBS act couldn't suck worse Obama's JOBS Act The "Jumpstart Our Business Startups Act" (in addition to everything else, the Act has an annoying, redundant title) will very nearly legalize fraud in the stock market. In fact, one could say this law is not just a sweeping piece of deregulation that will have an increase in securities fraud as an accidental, ancillary consequence. No, this law actually appears to have been specifically written to encourage fraud in the stock markets. Ostensibly, the law makes it easier for startup companies (particularly tech companies, whose lobbyists were a driving force behind its passage) to attract capital by, among other things, exempting them from independent accounting requirements for up to five years after they first begin selling shares in the stock market. The law also rolls back rules designed to prevent bank analysts from talking up a stock just to win business, a practice that was so pervasive in the tech-boom years as to be almost industry standard. Even worse, the JOBS Act, incredibly, will allow executives to give "pre-prospectus" presentations to investors using PowerPoint and other tools in which they will not be held liable for misrepresentations. These firms will still be obligated to submit prospectuses before their IPOs, and they'll still be held liable for what's in those. But it'll be up to the investor to check and make sure that the prospectus matches the "pre-presentation." The JOBS Act also loosens a whole range of other reporting requirements, and expands stock investment beyond "accredited investors," giving official sanction to the internet-based fundraising activity known as "crowdfunding." Cannot wait for this dude to become an Ex-President. Last edited by RedskinRat; 04-11-2012 at 11:12 AM.

04-10-2012, 06:59 PM	#2
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 41 Posts: 17,483	Re: JOBS act couldn't suck worse bad link.

04-11-2012, 12:28 PM	#4
firstdown Living Legend Join Date: Oct 2004 Location: chesapeake, va Age: 59 Posts: 15,817	Re: JOBS act couldn't suck worse To be honest from what I have read not sure if the bill is as bad as he makes it out to be. Most all of the regulations that are passed only add layers of cost to the honest person/business. The people that want to rip you off will no matter how much regulation is passed.

04-11-2012, 01:47 PM	#5
12thMan MVP Join Date: May 2005 Location: washington, D.C. Posts: 11,460	Re: JOBS act couldn't suck worse God bless Matt Taibbi, he's a solid blogger/journo. But the word "jobs act" is a bit of a misnomer. In a nutshell the bill allows small companies and start-ups to cut through the regulatory red tape to raise and attract capital. That's kinda of the gist of it. Is it a perfect bill? No. But has a perfect bill ever passed through Congress? Not since I've been breathing. Secondly, the bill was championed by Eric Cantor and later gutted by Cantor. (that's another thread). Given the current environment, this is about as much as we're going to see get done between now and November.

JOBS act couldn't suck worse

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