Newton’s Third Law of Motion states that for every action there is an equal and opposite action. Too bad over-blown and idiotic legislation doesn’t do the same, because, in this case, when you push the ball at 5mph, it explodes and moves at 50mph, causing all sorts of damage
U.S. banks, hedge funds and other Wall Street firms are weighing whether to move more of their operations abroad now that Congress has toughened financial regulations at home.
“We’ve talked about it with a number of clients,” says Jeff Visithpanich, principal at Wall Street compensation adviser Johnson Associates. The new bill is creating “a large administrative hassle. … If you own a big hedge fund, there’s very little reason you need to be in New York or Greenwich (Conn.).”
Once bankers have digested the 2,300-page legislation, the research firm CreditSights says, they are likely to conclude that the U.S. consumer market now offers “less attractive returns and that growth abroad is much more favorable.”
The USA Today article points out near the end that these companies might find a tough time around the world, as well. I disagree. Some nation will relax their laws to make them business friendly (if they are smart, they will work with the financial companies to make smart rules that help everyone and set the boundaries, legal practices, etc, without being over 2,000 pages), like a few states have done away with income and/or other types of taxes to be friendly to individuals, families, and companies.
The upshot? More jobs lost, revenue to governmental coffers lost, and loss of revenue to companies that deal with the financial companies, such as cleaning services, repair services, construction workers, you name it. Not too mention that these companies and some of their riskier finances, such as derivatives, won’t be regulated. Government, and, in particular, Democrats, just do not seem to get that “comprehensive (X) overhaul” has consequences. If there is a problem, you fix THAT problem. If you have one employee who is consistently late and absent, you do not come up with all new rules that affect everyone: you deal with that one employee. But, then, since Obama and so many Democrats have never worked a real job, how would they know that?
Crossed at Right Wing News and Stop The ACLU
Danp Teach how many companies moved overseas during Bush’s term. Tell me that there were less than under Obama. Snap
[…] The Pirate’s Cove – Snap! Companies Consider Moving Overseas Thanks To Finance Bill […]