One of of the most underreported repercussions of the ill-advised SarbOx legislation is the flight of publicly traded foreign companies as they de-list from the Security and Exchange Commission in order to avoid burdensome compliance.
The increasing costs of capital drive IPO’s and the ensuing trading activity to other more competitive markets overseas. Business Week reports that this is exactly what is happening as the London Stock Exchange, the Deutsche Borse, EuroNext, and the SEHK attract “bigger, more liquid and more sought-after capital markets.”
It appears that the only recourse the NYSE and the NASDAQ can conceive is to try to buy the foreign bourses. As Jamie Selway, managing director of White Cap Trading states: “If you can’t beat ‘em, buy ‘em.”
The only problem is that does nothing to fix the mess we have to deal with here in the States. I would suggest we start by strengthening our currency. Then tackle the debacle that is Sarbanes-Oxley.
