From Twitter (quoting Matt Stoller's newsletter):
Today I learned private companies were legally required to disclose their financlals when they passed a certain threshold until Obama revoked it.
For eighty years, if a company passed a certain tlnshold - most recently 500 shareholders and $10 million in assets - it had to register with the Securities and Exchange Commiuion (SEC) and disclose. Through the explosion of high-tech firms, from Intel to Microsoft to Google, one important step was to have -a firm go public, simply because it had to as its stock-owning employees multiplied This dynarric fostered openness, as soon as a company grew to a certain size, it usually ended up having to disclose a lot more data by dint of the reglstretlon threshold.
In 2012, however, the Obama administration worked with tho GOP ond a set of Democrats to roll this system back through a law called the JOBS Act. Obama argued the New Deal SEC rules were outdated, that "laws that are nearly eight decades old make it impossible for others to invest" in startups. The JOBS Act raised the number of allowable outside investors in private companies to 2000, and excluded employees with stock from that number.
The result was an explosion in private markets, and firms like WeWork and SpaceX. 1 wrote tbout this dynamic on 2019, walking readers thtaugh how less regulated private markets enabled the founder of WeWork to keep manipulatng the valuations of his company upward. WeWork blew up when it tried to go public, and released its S-1 form with all that batshit stuff about Adam Neumann. And SpaceX has fallen by 50% since it went public because everyone can see the financial lnformatlon clearly.Transparency works,
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