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Showing posts with the label FINRA

The Trouble with Economics by Sahil Grover, Impact Investing Intern, University of Virginia

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On June 20th, 2017, the Brookings Institute invited Alan Blinder, Representative Jamie Raskin, and Former Representative Vin Weber to discuss the "Lamppost Theory" – the tentative title for Blinder’s new book that seeks to explain why economic policy often comes up short. Held in the Hutchins Center on Fiscal & Monetary Policy, the discussion began with Blinder explaining what the book title means. Blinder’s main argument is as follows: “Politicians use economics the way a drunk uses a lamppost – for support, not illumination”
Blinder believes that the reason economists and politicians have not had success working together to create effective policies is because they hail from two completely different “civilizations”. He believes both parties share blame for past policy failures and must learn from each other. Blinder argues that economists and politicians measure success differently, using a completely different set of criterion to make decisions. Economists tend to us…

JOBS Act Hearing and Meeting

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As C-SPAN noted, "The JOBS Act (Jumpstart Our Business Startups Act), designed to help small companies raise investment capital, was signed into law by President Obama on April 5, 2012. 

On June 26th, the TARP Subcommittee of  the House Oversight held a hearing on the Security and Exchange Commission's (SEC) efforts to implement the Act. The SEC had 270 days from the signing of the Act to set forth rules. Rep. Patrick McHenry (R-NC) chaired the hearing. The JOBS Act relaxes some of the regulations put in place by the Sarbanes-Oxley Act and establishes the creation of Internet funding portals to facilitate 'crowd funding,' the collective pooling of money to support business projects. Critics worry that the JOBS Act's relaxed regulations will encourage fraud." 

We attended the hearing and found that the SEC will be late in responding to the deadlines established by the law. No mention was made of the recent $2 billion dollar loss at JP Morgan or the LIBOR scandal…