So no repeal of SEC Rule 10b-18?*
From the World Socialist Website, December 15:
The rise of Trump to the presidency of the US and his efforts to construct a fascistic dictatorship represent the violent realignment of the political superstructure to more openly and directly express the domination of the American economy and increasingly all aspects of life by a financial oligarchy.
In its mode of existence, its social being, this oligarchy, based on the endless accumulation of wealth through stock market speculation, financial market operations and parasitism, demands the abolition of all remaining restrictions on its activity.
One of the expressions of this process, which derives not from the personal characteristics of the individuals involved but from the objective logic of the system they head, is the evisceration of the Securities and Exchange Commission (SEC), the regulatory authority of the stock market.
The extent of this gutting operation was highlighted in a speech last week by Caroline Crenshaw upon her impending exit from the SEC. She first referred to the dismantling of the SEC block by block back in May and expanded on this assessment in her latest remarks.
Summing up what she called the “chaos” of the past year, Crenshaw said: “The appetite to deregulate has been rapacious; the analysis of the costs and benefits of our policies has been non-existent; and the repercussions… could be dire.”....
....MUCH MORE
Also at the WSWS:
How can GM workers at Factory Zero in the US oppose layoffs? Answers from Socialism AI
Since its launch on December 12, Socialism AI has provided thousands of users throughout the world with access to the revolutionary perspective of Marxism, drawing from more than 175 years of historical material and nearly three decades of WSWS coverage. With each interaction, it is helping workers and young people understand the world and how to change it.
This new feature will highlight selected questions and answers from Socialism AI—concise, clear and politically insightful responses to some of the most pressing issues of our time. If you come across an answer that you think should be featured in a future installment, use the form at the bottom of this article to submit it for consideration....
....MUCH MORE
*December 1, 2020:
Taibbi: "The S.E.C. Rule That Destroyed The Universe"
I've mentioned SEC Rule 10b-18 a few times, some links after the jump.
A lifetime of looking at this stuff has led me to the conclusion that in the U.S. stock buybacks are nothing more than a tax-avoidance scam with the added benefit of rewarding managers for things they didn't do by, well, managing the company rather than the stock price....
*****
...the answer is pretty straightforward, go back to the
pre-1982 rules on share repurchases:
...II. Overview of Current Rule 10b-18
A. Rule 10b-18 as a "Safe Harbor"
In 1982, the Commission adopted Rule 10b-18,4 which provides that an issuer will not be deemed to have violated Sections 9(a)(2) and 10(b) of the Exchange Act, and Rule 10b-5 under the Exchange Act, solely by reason of the manner, timing, price, or volume of its repurchases, if the issuer repurchases its common stock in the market in accordance with the safe harbor conditions.5 Rule 10b-18's safe harbor conditions are designed to minimize the market impact of the issuer's repurchases, thereby allowing the market to establish a security's price based on independent market forces without undue influence by the issuer....
The old rule considered it stock manipulation.
