Luigi Zingales Member of New Committee on Capital Markets

The Wall Street Journal reported on a new, independent committee formed to decrease the movement of capital markets to sources outside the United States. The Committee on Capital Markets Regulation will coordinate its efforts with the U.S. Treasury.

Luigi Zingales, Robert C. McCormack Professor of Entrepreneurship and Finance, joins the CEO’s of Home Depot, Deloitte, Lehman Brothers as well as legal experts, a former Secretary of Commerce and others who will take a look at the legislative, regulatory and legal issues affecting how public companies function. The article cites statistics given by NYSE CEO John Thain that put the situation in perspective. Thain has noted that nine of the 10 largest initial public offerings so far this year, as well as 24 of the top 25 last year, were handled overseas.

One area the committee will focus on is possible changes to Sarbanes-Oxley which grew out of corporate scandals from 2001 and 2002. Their report and recommendation are due at the end of November.

The Wall Street Journal article ran September 12, 2006.
Read the press release about the committee’s formation