Thread by @AndyGreenSF, Time to dive into this letter sent today to @SEC

Time to dive into this letter sent today to @SEC_News Chairman Clayton.

Key points:
- COVID crisis highlights importance of SEC& #39;s public company disclosure & accountability regulatory framework.
- Rather than deregulating, SEC should be expanding transparency & acct& #39;b, esp ESG. https://twitter.com/DukeGFMC/status/1265331383901327361">https://twitter.com/DukeGFMC/...

https://twitter.com/DukeGFMC/status/1265331383901327361

Since 1980s, SEC & Congress have undermined public markets& #39; transparency, liquidity & accountability.

SEC now proposing to go further....

- Expanding "IPO offramp" for large private companies

- Reducing quality, comparability & reliability of public company disclosure

- Making accountability tools like shareholder proposals out of reach for all but largest asset managers.

SEC public markets deregulation--

(1) causes serious harm to investors, workers & other corporate stakeholders AND
(2) concentrates economic power in small number of corporate executive & Wall Street hands.

This is the wrong direction.

W/ Fed bailouts of oil & gas industry, meatpacking & online shopping companies reports of mistreating essential workers & millions of workers still w/o paid sick leave.....

COVID highlights how workers, communities, the public need more, not less transparency and accountability from companies.

For example, why did PPP misuse come to light? B/c of SEC disclosure.

==> SEC public company disclosure & accountability regime is key taxpayer protection.

So good for the @SEC_News for insisting on those PPP disclosures.

https://www.sec.gov/news/public-statement/statement-clayton-hinman.

But">https://www.sec.gov/news/publ... we need a lot more.

And we need a lot less deregulation of the public markets deregulation -- like SEC did just last week in final rule REDUCING transparency for investors in merger & acquisition transactions.

See this powerful dissent by @SECHerrenLee

https://www.sec.gov/news/public-statement/lee-statement-financial-disclosures-about-acquired-disposed-businesses">https://www.sec.gov/news/publ...

Public markets are critical for driving the corporate long-termism that investors and the public are demanding around #ESG.

Attacks on public markets are attacks on ESG.

In powerful statement, SEC& #39;s Investor Advisory Committee last week endorsed #ESG, finding it material to investors and recommended SEC stand up necessary required disclosures.

Kudos to leaders like @jciv and many others.

https://www.sec.gov/spotlight/investor-advisory-committee-2012/recommendation-of-the-investor-as-owner-subcommittee-on-esg-disclosure.pdf">https://www.sec.gov/spotlight...

Time for the SEC to deliver.

- Shut down the IPO offramp of large private unaccountable companies that BTW defraud investors, workers, the public.
- Enhance public company disclosure.
- Expand accountability.

Check out our letter. https://sites.duke.edu/thefinregblog/2020/05/26/letter-to-sec-on-corporate-transparency-and-accountability-and-the-coronavirus-pandemic/">https://sites.duke.edu/thefinreg...

Letter to SEC on Corporate Transparency and Accountability and the Coronavirus Pandemic

Courtesy of Andy Green, Tyler Gellasch, Erik Gerding, Lev Bagramian, Urska Velikonja, Rachel Curley, Renee Jones, and Divya Vijay The following letter was submitted by the authors on May 26, 2020, …

https://sites.duke.edu/thefinregblog/2020/05/26/letter-to-sec-on-corporate-transparency-and-accountability-and-the-coronavirus-pandemic/

And also check out the great testimony, reports, and scholarship by contributors to the letter.

@TylerGellasch testimony to the House on public v private markets

https://healthymarkets.org/wp-content/uploads/2018/06/05-23-18-HM-letter-Fuel-Capital-Growth.pdf">https://healthymarkets.org/wp-conten...

@ErikGerding letter to the SEC& #39;s Concept Release on private markets https://clsbluesky.law.columbia.edu/2019/10/01/the-cost-to-retail-investors-and-public-markets-of-harmonizing-securities-offering-exemptions/">https://clsbluesky.law.columbia.edu/2019/10/0...

The Cost to Retail Investors and Public Markets of “Harmonizing” Securities Offering Exemptions

In June 2019, the U.S. Securities and Exchange Commission (“SEC” or the “Commission”) issued a Concept Release on the Harmonization of Securities Offering Exemptions (the “Concept Release”), which …

https://clsbluesky.law.columbia.edu/2019/10/01/the-cost-to-retail-investors-and-public-markets-of-harmonizing-securities-offering-exemptions/

@bagramian many letters to the SEC

https://bettermarkets.com/sites/default/files/CL_SEC_Modernization_of_Reg_S-K_10-16-19__0.pdf">https://bettermarkets.com/sites/def...

Here& #39;s another. The comment letters are all so good. It& #39;s what @BetterMarkets does so well.

https://bettermarkets.com/sites/default/files/Better_Markets_Comment_Letter_on_Procedural_Requirements_and_Resubmission_Thresholds_Under_Exchange_Act_Rule_14a-8_%28Release_Number_34-87458%29.pdf">https://bettermarkets.com/sites/def...

Urska Velikonja& #39;s incredible scholarship, pointing to how fraud impacts ripple across supply chains, financial markets, and workers.

The Cost of Securities Fraud

https://scholarship.law.wm.edu/wmlr/vol54/iss6/4/.">https://scholarship.law.wm.edu/wmlr/vol5...

The Cost of Securities Fraud

Under the dominant account, fraudulent financial reporting by public firms harms the firms' shareholders and, more generally, capital markets. This Article contends that the account is incomplete. In...

https://scholarship.law.wm.edu/wmlr/vol54/iss6/4/

Tenacious leadership from @rachEcurley on political spending & ESG, which played a key role in driving this investor and academic petition for SEC rulemaking on ESG.

https://www.sec.gov/rules/petitions/2018/petn4-730.pdf">https://www.sec.gov/rules/pet...

And this groundbreaking corporate governance scholarship, "The Unicorn Governance Trap" by Renee Jones. https://scholarship.law.upenn.edu/penn_law_review_online/vol166/iss1/9/">https://scholarship.law.upenn.edu/penn_law_...

The Unicorn Governance Trap

By Renee M. Jones, Published on 01/01/17

https://scholarship.law.upenn.edu/penn_law_review_online/vol166/iss1/9/

Of course, for more, check out @amprog on corporate governance and financial regulation.

This 2018 report on ESG -- which has just as much on accountability as disclosure. https://www.americanprogress.org/issues/economy/reports/2018/10/02/458891/corporate-long-termism-transparency-public-interest/">https://www.americanprogress.org/issues/ec...

Corporate Long-Termism, Transparency, and the Public Interest - Center for American Progress

Boosting SEC-regulated transparency on environmental, social, and governance matters can help align the interests of investors, management, and the public towards shared long-term success.

https://www.americanprogress.org/issues/economy/reports/2018/10/02/458891/corporate-long-termism-transparency-public-interest/

And this piece with @Prof_CEW on corporate governance and workers, which sets out how a power shift in corporate boardrooms away from unions/workers towards Wall Street helped drive the boom in exec comp, stock buybacks & M&A. https://www.americanprogress.org/issues/economy/reports/2019/08/14/473095/corporate-governance-workers/">https://www.americanprogress.org/issues/ec...

Corporate Governance and Workers - Center for American Progress

Power within corporations has shifted away from Main Street in favor of Wall Street, but collective bargaining, competition, tax fairness, and corporate long-termism can help American capitalism do...

https://www.americanprogress.org/issues/economy/reports/2019/08/14/473095/corporate-governance-workers/

Getting SEC back on track is key, but Federal Reserve/Treasury key to landscape of corporate power.

So check out @amprog Marc Jarsulic on why taxpayer upside and protecting workers is essential to fair & competitive econ landscape.

That& #39;s all for now. https://www.americanprogress.org/issues/economy/news/2020/05/14/484951/making-fed-rescue-serve-everyone-aftermath-coronavirus-pandemic/">https://www.americanprogress.org/issues/ec...

Making the Fed Rescue Serve Everyone in the Aftermath of the Coronavirus Pandemic - Center for...

The Fed plan to extend trillions of dollars in credit to support the economy during the COVID-19 crisis is needed, but significant changes are required to make the program transparent, accountable,...

https://www.americanprogress.org/issues/economy/news/2020/05/14/484951/making-fed-rescue-serve-everyone-aftermath-coronavirus-pandemic/

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