SEC’s Jackson Bashes Bankers’ IPO ‘Tax’ for Midsize Companies

April 25, 2018, 10:22 PM

Fees Wall Street bankers charge midsize firms to help them go public could be part of the reason behind a declining number of smaller public companies, Democratic SEC Commissioner Robert Jackson said April 25.

More than 96 percent of middle-market companies paid 7 percent of their value to investment banks for an initial public offering from 2001 to 2016, while almost half of larger companies doled out less, according to statistics Jackson released in remarks prepared for delivery at an event in Cleveland. The IPO “tax” presents “real risks for our economic future,” he said.

His remarks came a day...

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