| Is Geithner’s attack on venture capital a necessary protection or another opportunistic power grab?

Is Geithner’s attack on venture capital a necessary protection or another opportunistic power grab?

Martin L asked:


Please read the article before answering:

http://online.wsj.com/article/SB123923644886203393.html#mod=djemEditorialPage

Exerpt from the article giving Geithner’s justification for the draconian regulations:

“In justifying new SEC registration requirements, Mr. Geithner said that Bernie Madoff’s Ponzi scheme demonstrated that investors need more protection. He didn’t mention that Madoff’s firm was registered with the SEC as an investment adviser and had also been regulated by the SEC for decades as a broker-dealer. Also, Madoff was not running a venture firm.”

Does Geithner know what he’s doing? If not, we should all be afraid that he is in over his head. If so, we should all be afraid that a thriving private sector is not on his (or his boss’s) priority list.

Another excerpt:

Says Cypress Semiconductor CEO T.J. Rodgers, “First, Sarbanes-Oxley mandated byzantine corporate bureaucracy to ‘protect’ investors. Then, the SEC damaged the Silicon Valley economy by forcing companies to count stock options twice, both as dilution and as expense. As a result, Silicon Valley, for decades the bright spot of the American economy, produced only one [initial public offering] in all of 2008. Now, Geithner wants to regulate venture capital firms to protect us some more. It’s like watching children deface an economic work of art.”
Well, Mike, that’s a relief! (I guess.)

Related posts:

  1. Is Obama’s attack on venture capital a necessary consumer protection or another opportunistic power grab? Martin L asked: Please read the article before answering: http://online.wsj.com/article/SB12392364…...
  2. What are some unorthodox methods for borrowing money to start a business? JB asked: Don’t waste your time or mine by answering...
  3. How do people think of these ideas for venture capital firms? willyoulovemetonight asked: Okay look at the firm bellow and their...
  4. Startup & Venture Capital - Are ideas worth anything? zerohourx asked: I’m considering a new internet startup venture and...
  5. How to seek traditional investor for my business? harystwn asked: Traditionaly mean I can see and meet and...

Filed Under Government |

Tagged With , ,

Comments

One Response to “Is Geithner’s attack on venture capital a necessary protection or another opportunistic power grab?”

  1. Mike on March 26th, 2009 6:39 pm

    Geithner is not competent.

    The Obama administration is hostile to entrepreneurship.

    Also the Dinosaurs of industry, such as the automobile industry do not want additional competition.

    the Venture Capital Industry has been very successful at building up the computer and software industry and represents a source of competition to established firms who do not want additional competition.

    By regulating the Venture Capital Industry, essentially the Obama adminsitration would shut it down.