As the long overdue financial regulatory reform starts to take shape we all need to remind policy makers that businesses need to be afforded the same protection and consideration as "consumers" which are often defined as the individual constituents of government officials.
All corporations are not created equal, and very few have lobbyists that have the power to shape the legislative agenda and influence legislation.
As government officials define the "Consumer Financial Protection Agency" their definition of consumers needs to include businesses that do not have the resources to be considered "experts" in every facet of financial markets. I would point to how institutional investors were not afforded the same recourse as retail investors after being misled, and many times lied to, by firms brokering auction rate securities. When businesses are not afforded the same protection and restitution as retail consumers it indirectly hurts the individuals that policy makers are most concerned with protecting, their own constituents.
Another prime example of policy makers not giving adeqaute consideration to corporations is the current proposed legislation related to OTC derivatives. The policy push is to do away with OTC derivatives which are crucial to the practice of effective
I urge financial professionals to actively engage professional industry and financial associations to ensure that their voices are heard and that legislators truly understand the implications of their policies.
Blog post
Financial Regulatory Reform: Adequate Consideration for Corporations?
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Accounting