June 21, 2007

As reported by the WSJ Washington Wire, the Secretary of the Treasury agrees with us:

Paulson, the former head of Goldman Sachs who has made reducing regulatory and legal burdens a signature issue, told the House Financial Services Committee that the case has “enormous implications for the U.S. economy.”

“What concerned me was exposing a wide range of individuals who happen to do business with public companies to primary liability without bright lines,” he told lawmakers. Allowing investors to sue third parties “would create a very uncertain legal environment” and exacerbate what Paulson says is “excessive litigation risk” for companies that do business in the U.S.

This is manifestly a position that makes investors better off; alas, the Washington Wire persists in buying the trial lawyer propaganda that the pro-trial-lawyer position is the "pro-investor" position because they sue in investors' names.