| 00:00:30 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
GOOD AFTERNOON. THANK YOU ALL FOR BEING HERE TODAY. THIS IS THE SUB COMMITTEE ON TAR FINANCIAL SERVICES OF PRIVATE PROGRAMS. I'LL START TODAY'S HEARING...
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| 00:07:05 |
Quigley, Michael "Mike" - U.S. Representative, [D] Illinois
MAKING THE TRIP HERE. . I RECOGNIZE THE RANKING MEMBER FOR FIVE MINUTES. >> THANK YOU. I WANT TO THANK YOU FOR HOLDING THIS HEARING. THE JOBS ACT WAS...
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| 00:07:44 |
Crowdfunding, -
WATERS. THE ACT WILL LIFT RESTRICTIONS ON THE ABILITY OF THE START-UP COMPANIES TO RAISE CAPITAL. START-UPS IF THEY SURVIVE THE EARLIEST YEARS MAKE...
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| 00:10:01 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
WITH THE TO WORK THE SEC TO SEE THEY ARE WORKED TOGETHER IN A TIMELY FASHION. THANK YOU. I YIELD BACK. >> MEMBERS WILL HAVE SEVEN DAYS TO SUBMIT OPENING...
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| 00:11:54 |
Cartwright, Brian - General Counsel
STATEMENTS. YOUR OPENING STATEMENTS, YOUR WRITTEN STATEMENTS WILL BE IN AS PART OF THE RECORD. WE'LL BEGIN. MR. CARTWRIGHT, YOU'RE RECOGNIZED FOR FIVE...
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| 00:16:06 |
Hillel-Tuch, Alon - Chief Financial Officer
I EAGERLY LOOK FORWARD TO YOUR QUESTIONS ON THIS IMPORTANT TOPIC. >> MR. HILLEL-TUCH. >> SO MR. CHAIRMAN McHENRY, RANKING MEMBER QUIGLEY AND MEMBERS...
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| 00:21:30 |
Bradford, Steven - Professor
YOU. THANK YOU SO MUCH.
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| 00:21:31 |
Crowdfunding, -
PROFESSOR BRADFORD. >> CHAIRMAN McHENRY, RANKING MEMBER QUIGLEY AND MEMBERS OF THE SUBCOMMITTEE. GOOD AFTERNOON. MY NAME IS STEVE BRADFORD. I'VE POWER...
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| 00:26:29 |
Coffee, John C. - Professor
BUT MY TIME IS JUST ABOUT UP SO LET ME THANK YOU AGAIN FOR THE OPPORTUNITY TO TALK TO YOU TODAY. >> ALL RIGHT. I CERTAINLY APPRECIATE IT, AND WE'LL...
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| 00:31:53 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
DAY OF THE CONTRACT. TODAY INSTEAD THEY WILL BE SAYING IT INTERFERES WITH PROPER COST BENEFIT ANALYSIS. THERE'S A DANGER THAT LOOMS HERE, AND I'LL...
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| 00:33:56 |
Hillel-Tuch, Alon - Chief Financial Officer
YOU BELIEVE THAT FRAUD CAN BE IN ESSENCE ROOTED OUT THROUGH THE POWER OF THE CROWDS. CAN YOU EXPLAIN WHY YOU BELIEVE THAT? >> YEAH, ABSOLUTELY, NOT...
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| 00:35:46 |
Bradford, Steven - Professor
RATHER THAN PORTAL IS NOT THE BEST WAY TO ROOT OUT FRAUD. CAN YOU ABOUT FLUSH THAT OUT FOR US. >> IT'S MOSTLY BECAUSE THE ENTREPRENEURS THAT ARE GOING...
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| 00:37:40 |
Quigley, Michael "Mike" - U.S. Representative, [D] Illinois
MR. QUIGLEY FOR FIVE MINUTES. >> WELL, THE SAME TWO GENTLEMEN, JUST FOR THE SAKE OF ARGUMENT. YOU RECOGNIZE A LITTLE BIT OF THE DIFFERENCE OF MOST...
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| 00:40:09 |
Bradford, Steven - Professor
BRATFORD? >> I'M PERFECTLY WILLING TO CONCEDE THAT WHAT IS SOLD ON EBAY FROM SECURITIES AND THAT SECURITIES ARE WITHOUT A DOUBT MORE SOPHISTICATED THAN...
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| 00:41:27 |
Cartwright, Brian - General Counsel
CARTWRIGHT, IF YOU WANT TO WADE IN. >> YES, THANK YOU. >> WE'RE TALKING ABOUT FRAUD IN SMALL OFFERINGS, AND I WOULD LIKE TO START WITH THE BASELINE OF...
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| 00:45:20 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
THERE'D BE A LOT LESS OF THEM. I THINK THAT'S WHAT WE OUGHT TO DO. >> THANK YOU FOR YOUR COMMENTS, AND TO THAT POINT WE'VE RETAINED STATE FRAUD PREVENTION...
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| 00:45:38 |
Cartwright, Brian - General Counsel
YOUR COUNTY PROSECUTORS AND STATE PROSECUTORS, THEY CAN ACTUALLY GO AFTER THESE QUOTE SMALL FRAUDSTERS, AND I APPRECIATE IT. >> AS YOU SAY, MR. CHAIRMAN,...
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| 00:46:02 |
Guinta, Frank C. - U.S. Representative, [R] New Hampshire
YOU. WITH THAT, WE'LL NOW RECOGNIZE THE VICE CHAIRMAN OF THE COMMITTEE, MR. GITANA OF NEW HAMPSHIRE FOR FIVE MINUTES. >> THANK YOU, MR. CHAIRMAN....
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| 00:46:32 |
Coffee, John C. - Professor
ANALYSIS POLICY? >> IF YOU'LL PUT ON YOUR MIKE PHONO, IT UNON YOUR MICROPHONE. >> I UNDERSTAND THAT AND I WAS REFERRING TO THEIR NEW GUIDELINES AS OF...
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| 00:48:26 |
Cartwright, Brian - General Counsel
EVERYBODY, BUT I WANTED TO HEAR YOUR COMMENT ON THAT. >> THE LAW REQUIRES IT. THE S.E.C. IS REQUIRED TO CONSIDER EFFICIENCY, COMPETITION AND CAPITAL...
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| 00:54:29 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
IT IS COMPLETELY REVERSED SINCE THE EARLY YEARS OF MY CAREER. >> THANK YOU, MR. CHAIRMAN, FOR THE ADDITIONAL TIME. >> THANK YOU SO MUCH. QUESTIONS...
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| 00:54:53 |
Cartwright, Brian - General Counsel
AGREE THAT THE S.E.C. HOLDS A GREAT DEAL OF DISCRETION OVER THE IMPLEMENTATION OF THIS SECTION? >> GOING TO START WITH ME. >> IF YOU CAN JUST SAY BRIEFLY....
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| 00:55:09 |
Hillel-Tuch, Alon - Chief Financial Officer
MR. HILLEL-TUCH, WE'LL COME BACK. >> CLEARLY TRUE. >> YES. >> THANKS. >> IT'S THAT
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| 00:55:15 |
Bradford, Steven - Professor
SIMPLE. I MENTIONED IN MY TESTIMONY ONE EXAMPLE IS AUDITED FINANCIALS. IT'S AT THEIR DISCRETION TO CHANGE IT. >> OKAY. PROFESSOR BRADFORD? >> YES,...
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| 00:55:25 |
Coffee, John C. - Professor
THAT DISCRETION GOES MORE IN THE DIRECTION OF ADDING ADDITIONAL REGULATION THAN IT DOES IN THE DIRECTION OF CUTTING SOME OF THE EXISTING REQUIREMENTS....
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| 00:56:17 |
Bradford, Steven - Professor
THIS PROVISION AND THE IDEA AND EVEN THE PRESIDENT OF THE SAME PARTY OF THE MAJORITY OF THE S.E.C. COMMISSIONERS. >> WELL, AS I SAID, FOR THESE SMALL...
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| 00:56:46 |
Crowdfunding, -
AT SOME POINT, IF THE STATUTE ITSELF HASN'T ALREADY REACHED THAT POINT, WE REACH A POINT WHERE THE REGULATORY COSTS MAKES USE OF THE CROWD FUNDING...
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| 01:03:23 |
Cartwright, Brian - General Counsel
THAT YOU HAVE TO RAISE GOING PUBLIC DOES IT SIMPLY MAKE IT NOT POSSIBLE TO GO PUBLIC? IS IT NOT ECONOMICAL TO GO PUBLIC? IS THAT -- >> THAT'S AN INVESTMENT...
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| 01:05:12 |
Quigley, Michael "Mike" - U.S. Representative, [D] Illinois
MAKE CASES FOR iPADS. >> MM-HMM. >> WELL, THANK YOU FOR YOUR TESTIMONY. I'LL NOW RECOGNIZE THE RANKING MEMBER, MR. QUIGLEY. >> THANK YOU, MR. CHAIRMAN....
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| 01:05:37 |
Coffee, John C. - Professor
BEER. IN
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| 01:05:38 |
Dodd-Frank Act, -
A LETTER TO THE S.E.C. ON MAY 24th OF THIS YEAR, PROFESSOR COFFEE, THE CONSUMER FEDERATION OF AMERICA, CONSUMER ACTION AND SEVERAL OTHERS, WROTE THE...
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| 01:07:56 |
McHenry, Patrick - U.S. Representative, [R] North Carolina
MAJOR BANK FAILURE, AND WE ALL ARE UNDER THE SHADOW OF WHAT COULD HAPPEN IN EUROPE WITHIN A MATTER OF WEEKS. >> THANK YOU, MR. CHAIRMAN. I YIELD BACK....
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| 01:09:23 |
Coffee, John C. - Professor
ASSOCIATED WITH PRIVATE PLACEMENTS. WHAT I WOULD TELL YOU, WHICH I THINK I HAVE TO TELL TO YOU ADD REALITY TO THIS DISCUSSION, IF ANY ENTREPRENEUR ADVISED...
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| 01:10:03 |
Crowdfunding, -
SO MUCH DIFFERENT THINGS THAT IT'S SIMPLER USING A VERY TIME-HONORED PATH WITH A GENERAL SOLICITATION. I THINK THAT WOULD BE VERY FEASIBLE AND TESTIFIED...
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| 01:12:51 |
Cartwright, Brian - General Counsel
THE S.E.C. IS SUPPOSED TO WRITE REGS BY JULY FOURTH. IF THEY FAIL TO DO THAT, WHAT ARE THE CONSEQUENCES? TO THE MARKETPLACE? >> AND -- AND I WILL JUST,...
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| 01:14:20 |
Hillel-Tuch, Alon - Chief Financial Officer
DISTINCT CHALLENGE? >> THE -- THE WAY THE JOBS ACT IS WRITTEN RIGHT NOW, WE'RE STILL AT A PLACE WHERE IF THE S.E.C.'S GIVEN THE EDUCATION AWARENESS...
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| 01:18:06 |
Coffee, John C. - Professor
JOBS ACT SO THAT IT COULD WORK, FUNCTION AND DOE SO IN A COSTLY MANNER WITH AS MINIMAL AMOUNT OF FRAUD AS POSSIBLE. >> I DON'T THINK THE BILL IS AS...
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| 01:19:07 |
Crowdfunding, -
NOT BASED ON LEGISLATION. >> WELL, WE ARE HOPEFUL THAT THE SEC IS EITHER WATCHING THIS, AND IF SO HELLO. >> I'LL GET ANGRY E-MAIL IF THEY ARE. >> INF...
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| 01:19:42 |
Cartwright, Brian - General Counsel
JOB FUNDING SECTION OF THE ACT SO THAT THE OFFERINGS CAN OCCUR IN AN AFFORDABLE FASHION? >> THE WAY TO SAY THAT IS TO MOVE IT BACK IN THE DIRECTION...
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| 01:21:22 |
Hillel-Tuch, Alon - Chief Financial Officer
TURNS OUT TO BE MORE, THEY SHOULD TAKE APPROPRIATE ACTION. >> MR. HOLTOC ARE K SAME QUESTION. GOING BACK TO THE EXAMPLE MENTIONED TO YOU BEFORE, THAT...
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| 01:23:21 |
Bradford, Steven - Professor
WE HAVE A HUGE OPPORTUNITY HERE. >> PROFESSOR BRADFORD SAME QUESTION FINAL WORD. >> I HAVE IT RIGHT HERE. FOR THOSE OF YOU WHO ARE WATCHING THIS PROFESSOR...
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NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.