Senate Seeks to Toughen JOBS Bill, Aimed at Easing Rules on Start-Ups

Excerpt from an article in

The New York Times

Tuesday, March 20, 2012

Senate Seeks to Toughen JOBS Bill, Aimed at Easing Rules on Start-Ups

By EDWARD WYATT

WASHINGTON — A decade after the dot-com bubble popped and Enron became synonymous with spectacular fraud, Congress is on the verge of scrapping numerous safeguards against investment fraud and allowing some small companies to sell stock to the public with minimal disclosure or oversight.

The bill, which intends to make it easier for emerging companies to raise money and court investors, is scheduled for several procedural votes in the Senate on Tuesday and could come to a final vote as early as this week. A Senate amendment that differs substantially from a bipartisan version passed overwhelmingly by the House two weeks ago, faces a difficult hurdle.

The amendment must get 60 votes on Tuesday to revise the House bill, and it is unclear that Democrats will be able to attract enough Republican votes.

The JOBS Act, whose acronym stands for Jump-start Our Business Start-ups, has attracted widespread support on Capitol Hill and from the White House for its promise of attracting small-business investment and allowing businesses to hire workers. That it would give legislators something positive to take home to constituents during election season is a bonus.

But the bill faces stiff opposition from, among others, the chairwoman of the Securities and Exchange Commission, pension funds and lobbying groups like the American Association of Retired Persons, which fear that the bill will revive some of the worst practices of the dot-com era.