A good example of U.S. exporting rules in the global economy
Saturday, July 31, 2004 at 5:14AM "New Role for SEC: Policing Companies Beyond U.S. Borders: In Wake of 9/11 and Enron. Agency Hits Hard Abroad; Cutting Messier's Parachute," by Michael Schroeder and Silvia Ascarelli, Wall Street Journal, 30 July, p. A1.
An interesting article that describes how the Securities and Exchange Commission is actually more aggressive overseas that it is at home:
As financial markets grow more global, the SEC is increasingly working with foreign regulators to track down wrongdoing at companies listed in the U.S. Sometimes, the SEC has pursued cases in countries where securities regulators have weaker powers and resolved them first, thanks to its ability to reach punitive settlements with defendants. Many countriesí legal systems donít permit settlements, forcing their regulators to prove guilt in lengthy procedures.
But hereís the kicker that proves once again the profound nature of the rule-set reset that occurred because of the System Perturbation that was 9/11:
The SECís increased global role is in part a legacy of the Sept. 11, 2001, attacks. As the agency sought to establish whether the terrorists profited from the turmoil they wrought on financial markets, securities regulators around the world closed ranks. The bigger budget and strengthened powers the SEC obtained after the U.S. corporate scandals are also raising its international profile.
The horizontal scenario in financial markets that came out of the vertical shock that was 9/11 has entered its mature phase: the resulting rule-set reset is now creating further, far more profound outcomes than originally anticipated. Osama bin Laden laid 9/11 on the Core in order to disrupt its rule sets and generate greater disconnectedness both between the Core and Cap and inside the Core itself. In some superficial ways, al Qaeda succeeded, but in many more profound ways, it got exactly the opposite result it was hoping for. Understanding these connections helps us understand better how to effectively wage war within the context of everything else.
Reader Comments