Congressman Gary Peters: Working To Slow Economic Growth

In true Democrat fashion, Congressman Gary Peters is trying to regulate the free market and in turn slow economic growth. Via law.com:

Interestingly, other parties are also actively attempting to respond to the causes of the current financial crisis. Rep. Gary Peters, D-Mich., introduced a bill on June 12 that sets forth many of the initiatives of the Shareholder Bill of Rights Act. Additionally, on June 10, Treasury Secretary Timothy Geithner issued proposed nonbinding executive-compensation principles applicable to all publicly held corporations designed to “reward innovation and prudent risk taking” (an issue also addressed in both bills).

What would be a better option rather than passing draconian regulations like the one proposed by Congressman Peters?

In reforming the corporate governance system and the failures that led to the current economic crisis, Congress as well as the other parties involved should pay heed to the axiom, “first do no harm” as many of these proposed “solutions” could cause various unforeseen problems.

A prudent course of action may be for Congress to refrain from the risk of implementing a rather fixed federal corporate governance structure and instead allow the SEC, self-regulatory organizations and states to build upon the rules and regulations established in conjunction with the Sarbanes-Oxley Act in a manner that neither unduly burdens smaller companies nor inhibits the ability of the corporate-governance system to make timely adjustments in the future as necessary.

Well said.

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