Committee Submits Comment Letter on FTC’s Premerger Notification Proposal

On January 14, the Committee submitted a comment letter to the Federal Trade Commission (the “FTC”) on its proposed changes to the premerger notification rules (the “HSR Act Proposal”), which would subject registered investment companies (“RICs”) and other investment entities making certain investments to a thirty-day transaction delay, filing fees, and increased reporting obligations under […]

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Assessment of Empirical Research on FTTs

In this report, the Committee on Capital Markets Regulation (the “Committee”) reviews the existing academic and policy research on the projected tax revenue from a hypothetical U.S. Financial Transaction Tax (“FTT”) and the empirical research on the historical impact of FTTs on financial markets and investors in the United States, Europe and Asia. We conclude […]

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Treasury and Fed Lending Programs: An Assessment and Call for Continued Support for SMEs

The Committee’s report presents a data-based overview and analysis of key U.S. government interventions deployed in response to the COVID-19 pandemic to stabilize financial markets and support the provision of credit to the real economy. We find that the U.S. Treasury Department and Federal Reserve lending facilities were successful at stabilizing the U.S. financial system […]

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Committee Staff Releases Update on Monetary Sanctions Imposed by U.S. Enforcement Agencies

On November 12, 2020, the Committee staff released an update on the monetary sanctions imposed during calendar year 2019 by public enforcement agencies with oversight of the U.S. financial system. This statement updates the staff report on “Rationalizing Enforcement in the U.S. Financial System” released in June 2018, which reviewed enforcement actions brought and monetary […]

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Stress Testing During a Pandemic: Enhancing Transparency & Financial Stability

The Committee on Capital Markets Regulation (the “Committee”) strongly supports the use of regulatory stress tests to ensure that banks have sufficient capital to absorb losses under adverse economic conditions. The severe economic effects of COVID-19 have further heightened the importance of stress testing to ensure the stability of the banking system. In this statement, […]

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Hal S. Scott Testifies Before the Senate Banking Committee on the Treasury/Federal Reserve Main Street Lending Program

Written testimony of Hal S. Scott, Emeritus Professor, Harvard Law School; President of the Committee on Capital Markets Regulation, before the Committee on Banking, Housing and Urban Affairs, United States Senate. “Thank you, Chairman Crapo, Ranking Member Brown, and members of this Committee for inviting me to testify before you today on the Treasury/Federal Reserve […]

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Making Main Street Work

The Committee on Capital Markets Regulation (the “Committee”) believes that small and medium sized businesses (“SMEs”) will need continued financial support for a prolonged period to recover from the impact of the COVID-19 pandemic. A key part of this support should come from the Treasury-Federal Reserve’s Main Street Lending Program (“MSLP”) authorized by the Coronavirus […]

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The Impact of Private Equity Buyouts on Productivity and Jobs

Over the past two decades, the role of private equity in the real economy has dramatically increased. For example, private equity-backed U.S. companies numbered approximately 4,000 in 2006, but by 2018, that figure had doubled to about 8,000. Meanwhile, the number of publicly traded firms in the United States fell by 14 percent, from 5,113 […]

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The Rising Cost of Exchange Market Data Services

On July 30, 2020, the Committee released an updated statement expressing concern that U.S. stock exchanges are charging excessive fees for core market data services that are unnecessarily increasing the cost of trading stocks for U.S. investors. The Committee statement again examines the revenues that BATS, NASDAQ and NYSE report from all market data services […]

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Reforming U.S. Capital Markets to Promote Economic Growth

Vibrant and well-functioning U.S. capital markets create jobs, bolster investment, promote innovation, and enhance retirement savings. Capital markets function best when regulations allow for the efficient allocation of capital while protecting investors. In this report, we evaluate major trends and developments in U.S. capital markets and assess whether existing regulations are continuing to serve U.S. […]

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