The Mystery Of The Brokaw Act

The Mystery Of The Brokaw Act by The Activist Investor Blog

Something doesn’t make sense about this. We wonder whether corporate interests played a couple of liberal Democratic Senators and labor unions into supporting their efforts.

In March, Senators Tammy Baldwin (D-WI) and Jeff Merkley (D-OR) introduced the Brokaw Act. The proposed law will change how investors report holdings on Form 13-D, including:

1. shorten the deadline for filing a Form 13-D to two days, from the current ten days
2. include derivative holdings in shares needed to cross the 5% filing threshold
3. require, somehow, multiple hedge funds to disclose coordinated efforts, to respond to the so-called “wolf pack” problem.

Senators Elizabeth Warren (D-MA) and Bernie Sanders (D-VT) signed on as co-sponsors.

Why “Brokaw”?...