https://www.bloomberg.com/news/arti...ns-next-big-crisis-born-in-reverse-merger-mud ..... At least 100 Chinese-owned firms worth $1 trillion are using fraudulent financial statements and are still listed in the U.S..... .......“This wave of Chinese reverse-mergers was just the appetizer,” Rothstein said. “They were smaller, old-line companies that were easier to ferret out. Now, you’re talking about much bigger, much more sophisticated companies that are much harder to unpack, and to examine, audit and to even figure out what the numbers mean.” “The general trend that we have now in the U.S. with the current administration is to remove regulations,” Rothstein said. President Donald Trump is “trying to reverse and remove accountability and regulation and the types of rules that would help ensure more transparency.” Too much infirmation here to copy and paste, refer to web link above at Bloomberg
Interesting. I've never trusted off shore financial statements. Meaning outside of the states. We've had Enron, and that was enough for a lifetime.
I don't like Trump but the implication is the current admin is responsible for bogus financials is bullshit. A reverse merger is less expensive than a fresh IPO because a shell is already registered and a going concern can be rolled into it. It is still incumbent on the auditors to examine and certify the numbers and for investors to do their due diligence. There is nothing in current or past regulatory environment preventing this. Bloomie is a big government guy and the more regulation in place under the guise of protecting the little guy, the easier it is for the power elite to rig the game in their favor.
I took the article to say "don't count on the Trump admin to do anything about this and they may make it worse", not that they caused it.