The JOBS Bill as currently written will roll back protective securities laws that were put in place after the Enron and WorldCom scandals that used accounting firms to hide their insolvency.
Remember when groovygirl said: is Price Waterhouse Coopers the new Arthur Anderson? It is no accident that Price is the independent auditor of every imploding deal on the globe.
Click here. What do investment securities have to do with jobs, you ask? Very little.
Look, listen! Pay attention. The big banks and their “independent” auditors are protecting themselves from litigation now and paving the way for future Lehmans and MF Globals.
The legislation would also undo many parts of the 2002 Sarbanes-Oxley law, which was created in the wake of accounting scandals at the likes of Enron and WorldCom. The proposed new rules have been crafted hastily and pushed through in a great rush – presumably because the election season is upon us.
There is a lot going on in this legislation, all of it makes the issuer more opaque and distant from the investor and exempts the regulators in the process. Do NOT rely on hired “independent” auditors of investments. Read the foot notes, learn to do your own due diligence in any investment. Pay your own independent auditor to do due diligence. If you can not, do not invest.
If you do not follow gg’s advice, you are in fact gambling, not investing. The paradigm of investing has changed, understand those changes before proceeding.