A “Modest Proposal” for Capital Market Reform: Close Down Rule 144A

My piece with Jeff Madrick on capital market reform appeared on The Huffington Post today. They picked it up from New Deal 2.0 at the Roosevelt Institute.

We propose, modestly, shutting down Rule 144A which enables massively complex transactions like the Abacus deal put together by Goldman to be launched into our capital markets without SEC review or strict liability provisions that cover IPOs and other public offerings.

Sen. Specter is offering an amendment to the Dodd bill that would close a related big loophole created by the Supreme Court in the 1990s.

A “Modest Proposal” for Capital Market Reform: Close Down Rule 144A.