JOBS Act Not Working, Investment Bankers Say
A recent law intended to help more companies go public is not inspiring a whole lot of confidence, according to a new poll of leading investment bankers.
The JOBS Act - Jumpstart Our Business Starts Ups - is meant to increase the number of businesses going public.
The financial firm BDO USA says that last June, shortly after the law's passage, over half of the bankers polled believed it would do so. But now, less than one-third think so.
Wendy Hambleton, a BDO partner, says, "Is it a self-fulfilling indication? I don't know."
Wall Street and Silicon Valley lobbied hard for the law, which allows small firms to keep their initial filings with regulators confidential.
Hambleton says bankers aren't seeing that process yield more companies ready to sell stock.
"And if they're not seeing a dramatic change in the number or composition of that pool, that would be an indication that they're not seeing a big impact from the JOBS Act."
More than a hundred companies did make confidential filings in 2012, according to the Securities and Exchange Commission. Hambleton says that's a good number, and it may be too soon to judge the JOBS Act.