Thursday, June 21, 2007

Waxman Attempts To Stop Blackstone IPO

We live in a bizarre world. I want to know how the Congress of the United States can stop a company from going public with no legal grounds for doing so. Are there any attorneys out there? I'm not saying private equity is a good investment. At this point, I don't think it is. Blackstone's IPO may be a contrary data point that the private equity boom is about over. But, there are no grounds under which the government can determine what company, assuming they are abiding by SEC regulations, is allowed to go public.

Re Bloomberg: "Under the Securities Act of 1933, the SEC can block an initial public offering only over concerns that a company's filings with the agency contain inaccurate or incomplete information or makes untrue statements."

If Congress wants to create new legislation for regulation of private equity, then have at it. As I've said on here before, when it comes to our savings, government oversight is not only appropriate but necessary to protect our savings from those who would take undue risks with it if allowed to. I believe additional transparency would be appropriate if they want to go public. But, pass the laws first.
posted by TimingLogic at 4:19 PM

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