I have read this site’s article that was based on an American Spectator Piece that engages in the usual meandering speculation on the actions of Mike Castle. I will be dealing with the factual errors and speculative errors in this piece later. But there is something in the American Spectator article that all Delawareans of all political stripes should be concerned about.
In the American Spectator Article, the banks are blamed for a whole host of past and future problems. Spectator lays this at the foot of Delaware’s Incorporation laws. American Spectator expresses its disapproval of Delaware in this way:
“Because of its lax regulations and corporate governance laws, more than 50 percent of all publicly traded companies in the United States, including 63 percent of Fortune 500 companies have made Delaware their “legal” home, according to the state’s website. The same is true with the banking industry.
With that distinction of being corporation-friendly, Bank of America, JPMorgan Chase, Citigroup, Deutsche Bank and Barclays all have a major presence within the state and have considerable influence in the Delaware state legislature. However, these banks wield that influence beyond Dover and into Washington as well.”
In short American Spectator is taking the usual liberal approach that Delaware’s Incorporation laws are really bad and causing the corporate malfeasance that ruins our economy.
These guys could be writing for Delaware Liberal.
This wouldn’t be so bad but this trash Delaware approach has been taken up by and reinforced by our very own Christine O’Donnell. Here is Christine’s take on Delaware from Christine’s own newsletter.
“The American Spectator adds, “Because of its lax regulations and corporate governance laws, more than 50 percent of all publicly traded companies in the United States, including 63 percent of Fortune 500 companies have made Delaware their “legal” home, according to the state’s website. The same is true with the banking industry.”
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So Christine O’Donnell buys the notion that Delaware’s laws are lax regarding corporations. This is a position shared by Chuck Shumer of New York and other Liberal Politicians. I guess Christine would support the efforts of Shumer to have the Federal Government take over the Incorporation business from Delaware. (Shumer has legislation to do this.)
Of course since 20% of Delaware’s revenues comes from the Incorporation fees and franchise taxes this would mean huge tax increases for all tax paying Delawareans. Maybe there is a reason Christine O’Donnell does not consider this as being a burden to those who pay their bills and taxes.
So here are the questions for Christine O’Donnell.
If elected what do you intend to do about Delaware’s Lax regulations and Corporate Governance Laws????
Will you support the proposed legislation of Liberal Democrats that will strip Delaware of its role in Corporate Governance???
Do you really know anything about Corporate law in Delaware or were you just copying what you thought was a good line from American Spectator???
P.S. It seems great minds think alike. Halfway thru this draft I came upon this post from CATO at Delmarva Dealings. He saw what I saw and has only a slightly different take. http://www.delmarvadealings.com/2010/08/17/there-you-go-again-christine/