From The Wall Street Journal:
U.S. stock-market regulators say they promote transparency and fair play, but this month the Securities and Exchange Commission quietly carved out a China-size exception: When Chinese companies list on U.S. markets, basic auditing rules won’t apply.
Why would the SEC agree to this? Again, the Journal:
Why? Because China’s government doesn’t want them to, and Washington bent to Beijing’s pressure.
I think that answer is, at best, is partly correct. The other bit – and the bit that the WSJ would never cop to – is that Wall Street is terrified that if it does not provide an exemption for Chinese auditors, the deal flow from China to the US exchanges and investment banks will dry up.
Let’s not kid ourselves. The chairman of Goldman Sachs and the President of the NYSE carry far more weight in the White House and on the Hill than Xi Jinping ever will.
We here at the Bull Moose have deep objections to gratuitous regulation. But there are some places where regulation is essential, and the SEC is in business to protect individual investors and, on their behalf, the transparency of the markets. They have failed here, and in so doing they have undermined everyone’s market on behalf of a small number of privileged players.
More demonstration – if any were needed – that as Republicans we should not automatically align ourselves with ideals, policies, and leaders who place the interests of corporations ahead of the individuals who own and work for them.