America's Capital Markets: Maintaining Our Lead in the 21st Century

Download file The complete version of this testimony is available here as an Adobe Acrobat PDF.

Thank you for inviting me to appear before you today to testify on the global competitiveness of America’s capital markets.

America’s ability to win--and not just compete--in the global economy depends in part on our having the world’s most efficient capital markets. Substantial reforms in this area will be required for America to continue to be the most successful economy in the world and the best source of high paying jobs and enough economic growth to sustain the Baby Boomers and their children when they retire.

Last year, the London Stock Exchange recorded 129 new listings by companies from 29 different countries. In the United States, NASDAQ gained a net of fourteen and the New York Stock Exchange a net of six. In a press report by the London Stock Exchange on the reasons for its success, it cited that "about 38 percent of the international companies surveyed said they had considered floating in the United States. Of those, 90 percent said the onerous demands of the new Sarbanes-Oxley corporate governance law had made London listing more attractive."

Recently, New York Stock Exchange CEO John Thain told the Senate that last year that not a single top ten initial public offering (IPO) (by size of market capitalization) was registered in the U.S., and that 23 out of the top 25 largest IPOs in the world were registered outside the U.S. last year. This is contrast to the year 2000, when nine out of every ten dollars raised by foreign companies was raised in the U.S.

These are only a few indications that the very nature of our times will give the United States no choice but to transform or decay. We must make the bold changes required to enable our capital markets to flourish and our economy to win in the global marketplace or we will cede our leadership position to others.

Download file The complete version of this testimony is available here as an Adobe Acrobat PDF.

Also Visit
AEIdeas Blog The American Magazine

What's new on AEI

image Getting it right: US national security policy and al Qaeda since 2011
image Net neutrality rundown: What the NPRM means for you
image The Schuette decision
image Snatching failure from victory in Afghanistan
AEI on Facebook
Events Calendar
  • 21
  • 22
  • 23
  • 24
  • 25
Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Event Registration is Closed
Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.