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Stock Exchange fix.(Economics And Regulation)(Brief Article)

The American Enterprise

| January 01, 2004 | Lehrer, Eli | COPYRIGHT 2004 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

James Glassman, "Reform Requires That Exchanges Completely Separate Regulation from Business, and Adopt Public-Ownership Model," Testimony before the House of Representatives Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises, October 16, 2003 (thomas.loc.gov)

In the early fall of 2003, the New York Stock Exchange became embroiled in controversy after newspapers reported that outgoing chairman Richard Grasso would receive a payment of nearly $190 million, despite the exchange's lackluster performance. In Congressional testimony, AEI fellow James Glassman, who writes a syndicated column on personal investing, expresses disgust with the NYSE's actions and suggests measures to "help reverse a course that will inevitably lead to more scandals and a further erosion of confidence." Glassman makes two major recommendations.

He proposes separating the regulation and business functions of the stock exchange. ...

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