[Congressional Record Volume 158, Number 53 (Friday, March 30, 2012)]
[Extensions of Remarks]
[Page E517]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           THE JUMPSTART OUR BUSINESS STARTUPS ACT, H.R. 3606

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                          HON. BETTY McCOLLUM

                              of minnesota

                    in the house of representatives

                         Friday, March 30, 2012

  Ms. McCOLLUM. Mr. Speaker, I rise in opposition to H.R. 3606. While 
this legislation includes some useful provisions, it also eliminates 
crucial investor protections, which would expose the investments of 
American families and seniors to financial fraud.
  H.R. 3606 attempts to create jobs by making it easier for America's 
entrepreneurs to raise startup and growth capital. Unfortunately, this 
important goal is overshadowed by provisions in the bill that remove 
necessary safeguards for everyday investors. This legislation 
undermines the credibility of research on companies by eliminating 
conflict-of-interest restrictions. It allows unregulated websites to 
peddle stocks to ordinary investors without any meaningful oversight or 
liability, which could give rise to fraud and money laundering. 
Moreover, H.R. 3606 would allow large banking institutions with 
hundreds of billions of dollars in assets to de-register and escape SEC 
regulations that ensure corporate transparency, integrity, and 
accountability.
  When this bill first came before the House for consideration I 
supported it. It was my hope that the Senate would modify H.R. 3606 to 
address the concerns raised by the Securities and Exchange Commission 
(SEC), consumer advocates and independent economists. As the New York 
Times recently put it, passage of H.R. 3606 could result in more sales 
of ``worthless securities by bucket-shop brokerage firms.'' SEC 
Chairwoman Mary Schapiro wrote a letter to the U.S. Senate arguing that 
without appropriate protections, investors ``will lose confidence in 
our markets and capital formation will ultimately be made more 
difficult and expensive.'' Senate amendments to restore vital consumer 
investor protections did not receive the necessary votes to be included 
in the bill before us today. As currently written, H.R. 3606 poses too 
great a threat to the stability of markets and the security of 
American's pension funds, education savings and retirement accounts to 
earn my support.
  The United States and its people are still struggling to recover from 
the near-collapse of the country's financial sector. That crisis was 
the result of failed oversight and aggressive and irresponsible de-
regulation during the George W. Bush Administration. In the four years 
since President Obama took office, the Dow Jones Industrial Average has 
increased from 7,949 to 13,197 due in large part to his bold and 
determined efforts to restore transparency and sensible regulation to 
Wall Street. Congress should not put this remarkable rally at risk by 
passing H.R. 3606 and making it more difficult for regulators to detect 
and prosecute financial fraud.
  I urge my colleagues to oppose the H.R. 3606.

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