FOR IMMEDIATE RELEASE CONTACT: Jennifer Devlin, 703-876-1714
October 12, 2006 Jennifer.devlin@cox.net
U.S. CAPITAL MARKETS COMMISSION DISCUSSES GLOBALIZATION AND ITS IMPACT ON CAPITAL MARKETS AT SAN FRANCISCO TOWN HALL MEETING
Commission to Issue February Report With Recommendations on How to Enhance Competitiveness of U.S. Capital Markets
SAN FRANCISCO, CA—The Commission on the Regulation of the U.S. Capital Markets in the 21st Century met in San Francisco today for the third in a series of town hall meetings, part of a national tour to review and recommend changes to the current legal framework of the U.S. capital markets.
"The reality of globalization is that more foreign markets are emerging as major competitors to the U.S.," said Commission Co-Chair A.B. Culvahouse, Jr., Chairman, O'Melveny & Myers LLP. "Today's town hall addressed the impact of globalization and will help us formulate recommendations to enhance U.S. competitiveness and address the current array of changing rules, shifting advice, new layers of cost, and duplicative compliance and bureaucracy."
"Numerous political, economic, and regulatory factors have contributed to the increased competitiveness of foreign markets, resulting in a growing concern among financial researchers about the impact of these changes on domestic capital centers," said Commissioner Rick Murray, Managing Director & Chief Claims Strategist, Swiss Re and Working Group Facilitator. "We must clarify existing regulations to help address the changing global landscape and ensure the vitality and competitiveness of U.S. markets," he said.
At the Town Hall meeting in San Francisco, the Global Marketplace Working Group of the Commission met with university and financial researchers to analyze the trends and shifts in global capital formation activity, the reasons for the changes that are occurring, and the implications on the U.S. capital markets. Joe Muscat, Partner, Ernst & Young Strategic Growth Markets, shared new data from the first half of 2006 from its annual Global IPO Report.
"Despite challenges facing IPO-bound companies, 2006 has the potential to be a record-breaking year for global IPO activity in terms of capital raised," noted Muscat. "Through the first half of 2006, $104 billion has already been raised and second half activity is forecasted to exceed first half results, thereby surpassing the $210 billion record set in 2000."
"Despite the fact that the U.S. remains dominant in the venture capital arena, we have seen a steady decline in public equity flow," noted Culvahouse in response to the new figures. "We hope these new numbers signal a change in that trend and the start of more capital flowing to U.S. markets," he concluded.
The San Francisco meeting was the third in a series of stops on the Commission's listening tour. The final town hall event will take place on October 20th in Washington, DC and will address challenges facing the financial services industry.
The final product of the Commission will be a report that outlines specific legislative and regulatory recommendations to ensure the continuing health and competitiveness of our capital markets well into the 21st Century.
About the Commission on the Regulation of U.S. Capital Markets in the 21st Century
The Commission on the Regulation of U.S. Capital Markets in the 21st Century is an independent, bipartisan panel formed by the U.S. Chamber of commerce to consider the impact of recent regulatory changes on the capital markets and the appropriate overall legal and regulatory framework to ensure efficient capital flows throughout our economy. The Commission is made up of four working groups: Issuers & Auditors, Financial Services Industry, Global Capital Markets Competition, and Accumulated Savings & Investor Protection. In addition to co-chairs William Daley, Chairman of the Midwest, JP Morgan Chase, and A.B. Culvahouse, Chairman of O'Melveny & Myers LLP, members include:
John Bachmann, Senior Partner, Edward Jones
John Bohn, Chairman, GlobalNet Venture Partners
Jim Copeland, former CEO, Deloitte & Touche
Christine Edwards, Partner, Winston & Strawn
Peter Gilbert, Chief Investment Officer, Pennsylvania State Employees' Retirement System
Mellody Hobson, President, Ariel Mutual Funds
Jim Johnson, Vice Chairman, Perseus LLC
Mickey Kantor, Partner, Mayer, Brown, Rowe & Maw LLP
Eric Mindich, Founder, Eton Park Capital Management
Rick Murray, Managing Director & Chief Claims Strategist, Swiss Re
Don Nickles, Chairman and CEO, The Nickles Group
Bob Pozen, Chairman, MFS Investment Management
Richard Walker, Global General Counsel of Corporate and Investment Banking, Deutsche Bank
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Media Notes: To receive more information about upcoming events or to interview a member of the Commission, please contact Jennifer Devlin at 703-876-1714 or Jennifer.devlin@cox.net.
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