From Spiegel Online, an article about how large German corporations are packing up and leaving the American capital markets.
On June 18, the symbol of the German company Deutsche Telekom, DT, made its last run across the ticker at the New York Stock Exchange. Europe’s largest telecom company left the world’s biggest and most recognizable exchange after nearly 14 years of trading.
The company is currently in the process of delisting from all foreign exchanges and will soon only be traded on its home stock market in Frankfurt.
Deutsche Telekom is just the latest German blue chip to say goodbye to the American capital market. In an emblematic departure, Daimler, the first German firm to be listed in New York in 1993, officially quit trading on the NYSE on June 4, saying that it no longer needed a presence in New York to attract international investors. And Munich-based insurance and financial services giant Allianz abandoned the NYSE last fall.
Why are they leaving? The short answer: Sarbanes-Oxley.
All but three of 16 German companies that are or were at one time listed on the NYSE began trading on the exchange before 2002, riding the mergers and acquisitions wave of the 1990s — just before the US government stepped up compliance rules with the Sarbanes-Oxley Act, which became law on July 30 of that year.
Why is this a problem?
Complying with the SEC can require a small army of people. Sarbanes-Oxley came around at the right time for companies to delist.” German firms cross-listed in the United States spent between €10 and €15 million annually on SEC compliance, a survey conducted by Stadtmann and his colleagues found.
Yeah, I know. Just a bunch of right-wingers complaining about modern space-age regulation. And look at the benefits.
The double-digit costs of SEC complaince, however, are paltry compared the hundreds of millions of dollars in liability — either through lawsuits or investigations and prosecutions — to which a US listing can expose foreign firms. Shareholders can take companies to court far more easily under SEC regulations than those of Germany’s stock market regulator. And the US Justice Department and the SEC have been more assertive in investigating publicly traded companies following a wave of investment fraud schemes like the one by former Nasdaq chief Bernard Madoff, who swindled prominent investors out of billions.
So real, producing companies have to pay tens of millions because of money changers like Madoff. That makes perfect sense.
And the clincher:
For their part, officials at Deutsche Telekom and Daimler say there are fewer reasons to miss a listing in New York these days. Advances in electronic and Internet trading allow foreign investors to buy and sell shares directly in Frankfurt instead of going through foreign listings in New York, London and Tokyo. Even for large investment firms, it no longer matters if a company is traded in Bombay, Belgrade or New York.
So these idiots in New York, and their fellow idiots in DC are about to get a cold shower. They don’t own a monopoly any more. They can’t abuse people and companies simply because they guard the bridge.
Now you can see why the progs want so badly to regulate the internet.
this sorta ties in
Magical Thinkers in Washington
Predictions of cost savings through ObamaCare, like most liberal politics, were based on magical thinking. If they want something to be true with sufficiently intensity, liberals know it must be true.
Small children are natural magical thinkers. Ask any psychologist, pediatrician, or parent. Magical thinkers believe that because they want it or can conceive of it, “it” is so, or will be so. The magically thinking child ties a cape on his back and knows that with it on, he can fly. When he jumps off the roof, he will, of course, fall, not soar like Superman. The usual cure for magical thinking is ToT (tincture of time) and evidence.
People in Congress and in the White House, though not physically small, behave like children: They depend on magical thinking. Because they say it, “it” will be. The latest example is the passage of ObamaCare (HR 3950).
Magical thinking by children can harm them. Magical thinking by Washington can kill us. Those with power in Washington are not children, but they think like children — magically — and ignore mountains of evidence.
We tolerate magical thinking by children; that is part of childhood. Why do we tolerate such behavior in our “representatives” in Washington and the White House?
as they say…read it all
I think you are going to see a flight of capital from the US market over the near and moderate term. There are just too many uncertanties to be investing in the United States right now. We’ve passed it, but nobody really knows what all is in ObamaCare. We have a new financial regulatory Frankenstein’s MOnseter of a bill that is the same way. Thousands of pages of regulations that nobody knows what they really mean for the market and the economy right now. This is added to the worst Recession since the Great Depression, the uncertainty of our domestic real estate market, and the general over-indebtedness of both the Nation and individuals. If I had money, I’d be looking for some other place to park it right now until I could get a sense of how everything was going to shake out (and whether or not Obama was going to get a second term).
I am in IT and just the work involved on managing the systems themselves that host applications that have any financial reporting effect is huge.
There are extra security measures, need for redundant personal for separation of duties, reporting, and storage of data, logs, and bureaucracy to manage and audit this mess.
Kind of like zero shutting down all oil drilling because of one accident. What was really needed is the partners of the big accounting firms to be help personally responsible for the audit and reporting.
The Democrats are rethinking their plan to let the Bush tax cuts expire. Their problem is how to disguise their change of heart going into the fall election
The Democrats must be ordering a lot of makeup these days — along with wigs, masks, and camouflage gear. You see, they will have to keep a lot of the Bush tax cuts and will need to disguise this.
They have to keep them because to let them expire is to stuff sleeping pills into the economy’s maw.
They have to know why small businesses are not investing in expansion. They have to know why our jobs machine, once so dependable, sputters today. They must know why investors have stashed so many trillions on the sidelines.
It is the uncertainty of future taxes and regulations. Who wants to invest in his business when he does not know what his taxes will be and when he knows big tax increases currently lie ahead.
The Democrats must know $75 billion in new taxes next year (and $1.4 trillion over 10 years, according to Michael Boskin in the Wall Street Journal) could push the economy into a coma. It could certainly stifle job growth.
The Congressional Budget Office agrees. In fact, it nearly doubles down on the figures. It estimates $115 billion next year and $2.6 trillion by 2020.
Now, they may not read the bills they pass. But the Democrats must be aware that the CBO predicts big damage if they let the tax cuts expire.
They need the makeup and disguises in order to finesse what they must do. They must keep all or most of the Bush tax cuts or they must replace them with other tax cuts. They cannot afford to drug the economy with tax increases at this stage.
How do they pull this off?
another good’un
citizen_q wrote:
You are laboring under the assumption that the goal of congress is to actually fix the problem. I don’t think this is a safe assumption. Nor do I think that you can count on the Congress to be a well-meaning arbiter. Many Democrats are actively hostile to business, any business, and they have their say in comittee as well as theifr votes both in comittee and on the floor. It is no wonder we are in a predicament where there are no jobs being created. The engines of job creation have been under attack since 2006.
Iron Fist wrote:
I am ever the eternal optimist.
I agree with you, if fixing the problem were the goal, it seems to be it could be accomplished in a rather straightforward fashion.
I am confused though, this antipathy towards business ultimately bites the hand that feeds them, surely even the dim-bulbs that in congress that think you can capsize an island nation with a few more people, can see this.
@ citizen_q:
The antipathy towards business is part and parcel to their antipathy to the Middle Class. Anything that mitigates against the Revolution is bad. A people make better lives for themselves and their posterity, this is bad, because it decreases their dissatisfaction with the status quo, and makes them less receptive to the necessity of violent revolution to wipe away that status quo. Everything that the Democrats are doing makes perfect sense if you ignore all of the rhetoric and see them as Revolutionary Communist wannabes. One of the main goals of Revolutionary Communism is to exacerbate the conflicts between the workers and the owners of the means of production, and nothing will do that better than wide-spread unemployment. So while Obama may not like what the unemployment is doing to his approval and re-elect numbers, he very much approves of the dissatisfaction with the status quo that it produces. The uncertainty and shock that long-term unemployment produces in the economy and for individuals is a net positive for him. Peopl ewho have been out of work for a long time may be more willing to listen to talk of nationalizing the means of production in order to put them back to work, for example. Just the threat of unemployment was enough to get the autoworkers to go for nationalizing their means of production, but they had been softened up by years of hostile union activity that had been designed to make them fail just so such a scheme of nationalization could pass.
These are very dangerous people. They have been working towards this end for many, many years, and they can see the fruition of all their scheming coming to pass. The question is, will the voters reject this. The answer to that is by no means certain. Most voters don’t even know the real questions that their votes are going to answer.
Sorry for the early OT, but more anti-Semites are crawling out from the woodwork and this is in liberal ultra multi-culti MD.
IMHO, this is happening world-wide, and now is finding its home here under the welcoming tone of the obama administration.
Local Synagogue Vandalized With Words of Hate
Damn straight leave them up! Get angry! Arm yourselves and learn a no BS style of martial art. Enough already!
Oh as an aside, Rabbi Sunshine? Ironic name.
Somehow related:
The Obama Presidency Unraveling
The Denver Post endorsed Barack Obama for President in 2008. So it’s yet one more indication of the problems now buffeting the Obama presidency when its editorial features sentences such these: “Welcome to the summer of malaise. Welcome back, Carter.” They are now becoming almost too numerous to list. But let’s try: Surging deficits. A very weak economy. Persistently high unemployment (far beyond what the Obama administration predicted). The unraveling of promises made about ObamaCare. Growing unhappiness in Europe with the United States. America’s enemies emboldened and its allies uncertain. Public confidence in Obama reaching new lows. Collapsing support for Obama among independents. Deepening unhappiness among the left. A huge advantage for Republicans in voter intensity. Republicans dominating when it comes to issues voters most care about. Respected Democrats like William Galston predicting that Democrats might lose the Senate as well as the House. Self-identified conservatives outnumbering self-identified liberals by more than a two-to-one margin. Confidence in Congress reaching new lows (11 percent in the most recent Gallup poll), etc.
Still, I’m confident that very smart bloggers over at the New Republic will offer — one more time — a very smart explanation for why President Obama bears absolutely none of the blame for the problems he is encountering. After all, Obama has done much of what they have recommended.
It is somewhat amusing and somewhat poignant to witness former Journolisters offering panicked and pathetic explanations for why the political world is crumbling around them.
@ Iron Fist:
Very good post.
As the Chinese curse says we are living in exciting times.
And the complicit duplicitous MSM, helps herd the sheep.
@ Iron Fist:
Perhaps also if there were real leadership in the Republican party, the ultimate fraud of the progressive plans would be more apparent to enough people to vote them out.
@ citizen_q:
Rabbi Sunshine, Olney Maryland, Ultra Reformed congregation perhaps?
Self inflicted agit prop against the crusader teabaggers perhaps?
@ Scott Madsen:
I don’t know. I really had not thought of that possibility. I have never heard of that type of thing ever happening, I deeply doubt faked nazi vandalism. I do know of serveral faked cases of anti-islamic vandalism.
However, according to the mission statement on their web-site, they are conservative.
We used to lead the world in everything. EVERYTHING.
zero can’t let that stand. We can’t be the best. The strongest. The most productive. The leader of the free world.
zero said recently, that our days are over as the country the rest of the world can count on to lead the way.
And he is doing everything in his power to make that a reality. He is out to wreck this nation.
We have a diabolical smiling psychopath in charge, who is fueled by anger and committed to a path of destruction. Nothing abt. America is sacred to him.
It is so sinister, it is difficult to comprehend what is going on.
But fewer and fewer citizens are standing there with their mouths open, watching and giving him the benefit of the doubt.
The meaning of his platitudes is becoming clear. His “Change” means Destruction and Suffering.
Scott Madsen wrote:
That has a Californian ring to it, doesn’t it?
@ Guggi:
It’s Bush’s fault!
/
Progressive excuse.
@ chickadee:
Remember, SOX goes back before Zero. It was a donkey
abortioninvention though.zero is at -20 today at Ras.
Also this is interesting:
Seventy-five percent (75%) prefer free markets over a government managed economy, but the Political Class disagrees. In his new book, In Search of Governance , Scott Rasmussen says, “The gap between Americans who want to govern themselves and politicians who want to rule over them may be as big today as the gap between the colonies and England during the 18th century.”
snork wrote:
He is taking full advantage of any opportunity presented to him to bring us down.
Oliver Stone apologises for claim Hitler was a scapegoat
Yeah a meer slip of the tongue??????
@ chickadee:
In this case, he hasn’t done anything. The donkeys were busy trying to destroy the financial industry long before he came along. This is Dodd, Frank, and Pelosi’s baby.
Let’s not get so obsessed with the POTUS that we don’t see the sabotage team that’s been busy for a decade.
@ snork:
That is true and why I often refer to them as demonrats.
Guggi wrote:
snork wrote:
How could anyone miss scoundrels like Dodd, Frank and Pelosi? LOL
I blame zero, as the current ring leader, who, “Hasn’t done anything,” to put the brakes on any of this madness. German Companies are leaving the NYSE because they know it’s not going to get better under zero. It is going to get worse. And they have options now.
@ citizen_q:
The reform synagouges in inner Montgomery County Maryland sufered the same such vandalism back in the mid eighties when hate crime legislation was first being tabled in committe, and mysteriously ceased for better than a decade.
Olney is an enclave of the pastoral liberal elitists of DC. The wealthier younger libs who have moved out River Road beyond Potomac. The vandalism in the eighties occured closer in to the city, so what you may have here is a new generation picking up the propaganda mantle of their forebears.
When I see it happening in middle America, I will be concerned, but not when it is occuring in the DC region concurrent with the leftist propoganda assault against the resurgent right.
@ citizen_q:
Missed the conservative part….maybe just run of the mill libs and not the ham on challa with pacthouli mayonaise crowd then.
chickadee wrote:
That’s a key point that has huge ramifications. In the long run, not only are exchanges as we know them obsolete, corporate headquarters as we know them are, too. The blue staters don’t seem to grasp that a company can just as easily headquarter their major corporation in Bentonville, AR as Manhattan. As the century wears on, they’re going to discover that they don’t have anything to trade.
Why is it that when liberal elites try to shape America the way their logic tells them would result in utopia the actual results are misery? After all they are so much smarter than us, having gone to Harvard and all. Thomas Sowell explains it brilliantly:
“Because experience trumps brilliance.”
“Elites may have more brilliance, but those who make decisions for society as a whole cannot possibly have as much experience as the millions of people whose decisions they preempt. The education and intellects of the elites may lead them to have more sweeping presumptions, but that just makes them more dangerous to the freedom, as well as to the well-being, of the people as a whole.”
http://article.nationalreview.com/438688/how-smart-are-we/thomas-sowell
Nevergiveup wrote:
I just don’t understand how anyone thinks it is possible to humanize Hitler. And why would they even want to try? It would be like trying to humanize the devil.
NOTE TO ADMINS: Please review the Posts page. Something really WEIRDDD is happening. Thanks!
snork wrote:
Wall Street keeps Manhattan afloat. Soon it is going to tip over like Guam.
‘Nirthers’ are back on the case over at the Globe:
http://www.globemagazine.com/story/529
This one’s for you Chuckles, take it and sneer some more.
I know the Globe, but the NYT sure ain’t the newspaper of record these days.
Nirthinz fun!
@ Nevergiveup:
You’ll soon get a Hat Tip my friend!
Time to wash the car, BBL.
Macker wrote:
My pleasure.
Time for PT and then work. BBL.
I am watching “Knute Rockne: All American”. Did ya all know Superman was in it?
Scott Madsen wrote:
@ The Osprey:
Thanx for the link !
A gel that can help decayed teeth grow back in just weeks may mean an end to fillings.
The gel, which is being developed by scientists in France, works by prompting cells in teeth to start multiplying. They then form healthy new tooth tissue that gradually replaces what has been lost to decay.
Researchers say in lab studies it took just four weeks to restore teeth back to their original healthy state. The gel contains melanocyte-stimulating hormone, or MSH.
And don’t pay no never mind to that extra arm growing out of your cheek
Scott Madsen wrote:
So is this “Nirth Certifikit” as Chuckles would call it from the Coast General Hospital in Mombasa, Kenya? That’s where his Kenyan grandmother says he was born.
citizen_q @10 wrote:
Listening to Bob Schieffer’s lecture the other day about how the ‘old media’ fact checks their stories was comedy gold. Yeah sure Bob. Afterall, your tiffany network did such a bang up job with the Killian memos.
@ The Osprey:
My bet is Obama’s got a stash of a mere billion or two somewhere where he can get to it. There was so much money that just disappeared last year that no one would miss a little of it. It is the kind of thing a Third World dictator-wannabe like him would do. I’d love to be able to track it down and prove it, though. Nothing would happen to him, though. All the dreams of impeachment are just that: dreams. It will never happen no matter what he does. He is untouchable.
With the economy going down the dumper ain’t it grand that the Clintons can spend 5 million on their daughters wedding?
@ Nevergiveup:
You expect less of royalty? /
Sumner Redstone gave Viacom stock to ‘bi-curious’ rocker: report
A Redstone spokesman declined to comment when asked under what circumstances the 87-year-old mogul made the gift.
???Oh I don’t know, but the term “Dirty Old Man” pops into my head.
@ Nevergiveup:
Just remember that you aren’t paying your fair share of taxes. That’ll get a little better after the Bush Tax Cuts expire and Obama gets his VAT through the Lame Duck session, but you’ll still have more than you deserve. Barry’ll be working on that, though. He’s got two more years…
They became instant war heroes by foiling a suicide bomber trying to sneak into US soldiers’ quarters in Afghanistan, and as a reward, they’re getting homes — and lots of doggie treats.
Three stray mutts — Rufus, Target and Sasha — were living near Sgt. Chris Duke and other US troops on a remote military base in Afghanistan on Feb. 22 when they spotted the bomber outside a building where 50 soldiers were sleeping.
Rufus bit the Taliban terrorist on the leg as Target and Sasha barked furiously.
Several soldiers — unaware of the imminent danger — tried shouting down the mutts. But the dogs continued barking, spooking the bomber into prematurely setting off 24 pounds of C4 explosives before he could get through the door — and killing himself.
Rufus and Target were seriously wounded. Tragically, Sasha died.
oday, Rufus arrives in Manhattan before flying to Augusta, Ga., where he will spend the rest of his years with Duke and his wife, who is pregnant. Target, being flown out at the same time, will live in Phoenix with the Army medic who saved her life.
Read more: http://www.nypost.com/p/news/international/dog_gets_his_day_haMOgDHiJOYZ3sFg3n0iBM#ixzz0utgWPsbD
Nevergiveup wrote:
heh, I BELIEVE! But, then, I’m a brain dead idiot that knows nothing about teeth. That is why I buy the enamel-restoring toothpaste too!!!
<b
Nevergiveup wrote:
I think it’s great, put that money into the local economy. That’s real stimulus because it’s not borrowed from the treasury or printed, it’s money from China and Saudi Arabia.
snork wrote:
SOX was also a big contributor to the financial meltdown. The Mark to Market rules basically dropped some banks assets to near zero because million dollar homes that couldn’t be immediately sold were listed as worth nothing.
Dead thread…….
@ The Osprey:
I don’t know what provenace it has, but I may be guyimg my first copy ever to find out or just return to the thread at thr site I found it at to see how it shakes out.
Maybe the king makers are through with him and are outing him to pump up the volume?
If al Reuters picks it up, head for the hills!