With the polls suggesting that Democrats will control the House and the Republicans will control the Senate, what will be the effect on new business regulation?? Rep. Barney Frank (Mass.) will get the chair of the House Financial Service Committee (Oxley has it now and is retiring; his Republicans successor would be either Baker of (La.) or Leach (Iowa). It will be a disaster for the business community. A Democratic House and a Republican Senate (Republican President) guarantees deadlock. This would be wonderful if our regulatory rules were in good shape. We would get no new silly rules. Unfortunately we are not in good shape now. As the result of Sarbanes-Oxley Act of 2002 and a quixotic SEC, our regulatory rules are too heavy-handed (hurting the competitive position of the United States in the world financial markets) and now will look to stay that way. If Frank does get legislation through it will be big on more, not less mandatory rules (look at his executive compensation bill introduced last year). We need more options for business structure not less; business needs to compete based on their structure. He is also big on increasing "average" worker pay and disabling Wal-Mart from offering a credit card. Again, this is a disaster for business--no way to sugar coat it.
Monday, November 06, 2006
On this morning's Business Law Prof Blog: