In today’s Wall Street Journal, an editorial applauded the Supreme Court for ruling in Credit Suisse v. Billing that investors could not sue investment banks under anti-trust law. They like Justice Stevens’s concurring opinion:

After the initial purchase, the prices of newly issued stocks or bonds are determined by competition among the vast multitude of other securities traded in a free market. To suggest that an underwriting syndicate can restrain trade in that market by manipulating the terms of [initial public offerings] (IPOs) is frivolous.

This is a red herring. If the underwriting syndicate can get super normal profits through commissions during the IPO, subsequent trading is moot.

The main finding in the Breyer Opinion (6 joining, 1 concurring, 1 abstaining and 1 dissenting):

In sum, an antitrust action in this context is accompanied by a substantial risk of injury to the securities markets and by a diminished need for antitrust enforcement to address anticompetitive conduct. Together these considerations indicate a serious conflict between application of the antitrust laws and proper enforcement of the securities law.

I agree that there is a fundamental conflict between Justice and/or FTC pursuing anti-trust claims and SEC regulating securities. But this is not saying that there should be no anti-trust enforcement. SEC should enforce anti-trust laws.

Here’s what they can expect to reap.

Continue reading Disecting Supreme Court IPO Decision →

I’ve said this many times before, but apparently it needs to be chronically restated. What most people object to in media is not the biased reporting per se, but biased reporting masquerading as objectivity. We’d just like a little truth in advertising, but too many liberal reporters are unable to even see their own bias. Even when their own organization points it out.

I’ve said this many times before, but apparently it needs to be chronically restated. What most people object to in media is not the biased reporting per se, but biased reporting masquerading as objectivity. We’d just like a little truth in advertising, but too many liberal reporters are unable to even see their own bias. Even when their own organization points it out.

I’ve said this many times before, but apparently it needs to be chronically restated. What most people object to in media is not the biased reporting per se, but biased reporting masquerading as objectivity. We’d just like a little truth in advertising, but too many liberal reporters are unable to even see their own bias. Even when their own organization points it out.