Exactly. The current system of capital formation for small companies works extremely well. Rarely is there fraud in this asset class, and when there is it is relatively small. In stark contrast to the big investment bank/broker-dealer scams of the past 50 years (e.g. unregulated credit default swaps, securized garbage that trades under the name commerical mortgage-backed securities, etc.) angel investing provides tons of positive benefits for society, most notably, new jobs. The fact that regulators are pushing industry-killing changes in this space prove two things: 1) they have no idea how to address the real problems that plague the financial industry, and 2) there is a great need in our country to improve the quality and knowledge of regulators. The goal is to create the most sophisticated, and easily-accessible financial system in the world while, at the same time, weeding out the elements of the industry that seek to defraud investors. The bill as currently proposed does nothing of the sort.
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Financial "Reform" a farce for Angels
Exactly. The current system of capital formation for small companies works extremely well. Rarely is there fraud in this asset class, and when there is it is relatively small. In stark contrast to the big investment bank/broker-dealer scams of the past 50 years (e.g. unregulated credit default swaps, securized garbage that trades under the name commerical mortgage-backed securities, etc.) angel investing provides tons of positive benefits for society, most notably, new jobs. The fact that regulators are pushing industry-killing changes in this space prove two things: 1) they have no idea how to address the real problems that plague the financial industry, and 2) there is a great need in our country to improve the quality and knowledge of regulators. The goal is to create the most sophisticated, and easily-accessible financial system in the world while, at the same time, weeding out the elements of the industry that seek to defraud investors. The bill as currently proposed does nothing of the sort.