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Lifting general solicitation ban as noxious as Glass-Steagall repeal

"Hey granny, let me at your 401-K"

“Hey granny, I want your 401-K”

The SEC has opened the door to the next tidal wave of fraud. The general solicitation ban has been lifted. Only “reasonable steps” are required to determine accredited investor status. “Reasonable steps” are not defined.

Say hello to boiler room charlatans, lock up granny’s 401-k where pond scum can’t get at it, and kiss any remaining middle class wealth goodbye. This is on par with the other worst decision ever, which was repealing Glass Steagall, which initiated a giant transfer of money to the already wealthy from the rest of us.

The Securities and Exchange Commission today adopted a new rule to implement a JOBS Act requirement to lift the ban on general solicitation or general advertising for certain private securities offerings.

Yes, the lifting of the ban will help Silicon Valley startups. That’s fine. What isn’t fine will be the slime offering “investment opportunities” to the unwary.

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