Steve Rattner has angered a crowd.
In a New York Times column Monday, Rattner, a contributor to the Times‘ Opinion Pages, took a swing at the JOBS Act, particularly the portion relating to crowdfunding. The law, signed last April, will soon allow regular investors an opportunity to invest in startups in exchange for company stock. Rattner called the law “the greatest loosening of securities regulation in modern history,” and said it will not actually create jobs as its name implies. In regards to crowdfunding, Rattner equated individuals investing in startups to more traditional forms of gambling: “For individuals, [equity crowdfunding] is pure folly. Buy a lottery ticket instead. Your chance of winning is likely to be higher.”
The remarks frustrated a number of individuals currently working with the Securities and Exchange Commission to make equity crowdfunding a reality for regular investors.
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