But a spokesman said Baker has decided to broaden the scope of the hearing to include issues that have been raised in conjunction with investigations by the Securities and Exchange Commission and the U.S. Attorney's Office into the allocation of shares in initial public offerings during the peak of the market boom. Members of Congress have been hearing from constituents concerned about the collapse of market valuations during the past year, particularly in the dot-com sector. But to some observers, it isn't clear that Congress has a role in addressing those concerns. Any attempt to try to legislate in this area would be a departure from past practice. But with more Americans invested in capital markets than ever before because of the growth of retirement funds and the ease of investing directly via the Internet, members are hearing more clamoring from their constituents.
Most investors know the risks.
They don't look for government to come up with a quick-fix answer. It's time Congress looked into any potential for some guidelines on the fullest disclosure possible. Meanwhile, the Securities Industry Association, the trade group representing the securities industry, is establishing its own ad hoc committee to look into these issues. Certainly, the conflict of interest concern is covered by federal regulation and the exchanges have their own rules. We'll be looking into that.