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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (5267)	12/13/2001 12:07:42 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

David, I guess we'll have to see how much publicity the Govt's investigation gets and how angry investors become as the Fallout from the Equity Bubble of 2000 continues to unwind. The Glass- Stegall Act was passed due to the public outcry over massive stock losses and the 1930's depression. The US Government Regulators actually clamped down and created at least 3 new laws to rein in the perceived abuses of the investment community. 1. The Securities and Exchange Commission (SEC) was established to lay down the law and punish the violators. 2. The Glass-Stegall Act was passed which banned any connection between commercial banks and investment banking. It was finally modified big time in the 90's. 3. FDIC was established to insure individual bank accounts for up to $100,000. It's my opinion that we'll see changes in accounting standards, and other regulatory measures to again reduce abuses, either real or perceived, that are going on in the financial community. Enron's collapse and the extensive media coverage, as well as the Congressional investigation may be part of a series of events that elevates public anger and this anger will force the Government to do something about it. The accounting issue of companies reporting Pro-forma earnings, and aspects of executive option compensation have been raised by the financial community as well. The worse the economic climate the next few years, the more likely bigger regulatory action occurs. John