Monday, March 19, 2012

On the Road Again to 1929 - The JOBS Act

Copy of Letter to Rep. Collin Peterson (D-MN):
I am writing about your YES vote on the Jumpstart Our Business Startups Act, HR3606 (JOBS, or Jumpstart Only Big Scams Act).

Thank you for voting to end protections that were put in place after the stock market crash of 1929. And thank you for making the raising of capital more difficult and expensive because of the increased risk of fraud.

Exempting some types of transactions from SEC disclosure requirements as well as getting rid of penalties for lying will definitely make raising capital easier.

Getting rid of many parts of the 2002 Sarbanes-Oxley law will facilitate the return to the era of innovative accounting such as those practiced by Enron and WorldCom.

We have already eliminated the Glass-Steagall Act which kept commercial and investment banking separate, allowing bad investments to endanger commercial financing. With taxpayer financed bail-outs available, what danger could there really be?

So let's say good-bye to investor protections and give more jobs to people like Bernie Madoff and others who benefit from laws promoting economic self-destruction.

And by the way, how much did those securities industry special interests have to contribute to get you to vote yes on this bill? I bet you sold out real cheap.
This is yet another bill whose purpose is at odds with the title, unless the title only refers to the jobs of our representatives in Congress. I have also written my other representatives, President Obama, Sen. Al Franken (D-MN) and Amy Klobuchar (D-MN) to let them know my opinion of this bill.

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