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SEC’s Jackson urges a review of stock buyback rules

Joe Mont | June 12, 2018

During a speech before members of the Center for American Progress on Monday, SEC Commissioner Robert Jackson addressed his concerns about corporate stock buybacks. He also detailed research produced by his staff at the Securities and Exchange Commission “that raises significant new questions about this activity.”

One issue, he said, is the Trump tax bill that became law last December, promising to bring overseas corporate cash home.

“Now, we all know what happened the last time a Republican-controlled government pushed through a corporate tax holiday in 2004. As that bill’s sponsors hoped, American companies repatriated billions of dollars of overseas cash,” Jackson said. “But corporations didn’t invest most of that money in innovation. They didn’t invest it in retraining their workforce or raising wages. Instead, executives largely used the influx of fresh funds for massive stock buybacks.”

Jackson said he worried that, 14 years later, history would repeat...

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