Trump asks SEC to consider ending required quarterly reports

Trump asks U.S. SEC to consider switch to half-year corporate filings

Trump asks U.S. SEC to consider switch to half-year corporate filings

President Donald Trump said on Friday (Aug 17) he had asked stock market regulators to look into ending the requirement for businesses to issue quarterly earnings reports.

One criticism is that if companies are striving to report profit gains every quarter, they are more likely to buy back shares and cut costs than invest in their businesses.

In a tweet, he argued a longer time frame would "allow greater flexibility & save money".

The SEC is an independent agency, and the president can not force it to implement rule changes.

However feasible or likely the plan is, Trump's tweet does represent the sort of business-minded approach that corporate America hoped it would get from having a former executive in the White House.

The SEC was created in 1934 in the midst of the Great Depression and requires publicly-traded companies to issue quarterly and annual earnings reports to keep the public informed on their operations and financial condition.

Trump later told reporters the idea was especially urged on him by Indra Nooyi, CEO of PepsiCo, who is stepping down in October.

Trump recently hosted a number of top company leaders while on vacation at his private golf club in Bedminster, New Jersey, including the heads of Apple Inc, Fiat Chrysler Automobiles NV, Boeing Co, FedEx Corp, and Honeywell International Inc.

Ultimately, the SEC would need the majority of its sitting commissioners (there are now four) to vote for the final changes. A spokeswoman for Chairman Jay Clayton did not respond to a request for comment.

But scrapping quarterly reporting is not on the SEC's near-term agenda, according to public records. He added that he has asked the SEC to examine moving to a six-month reporting schedule, instead of the current system of reporting corporate results every three months.

"I do believe it will help upper management".

"The difficulty in making better long-term decisions away from a quarterly reporting cycle certainly stands out as being beneficial", said Art Hogan at investment bank B. Riley FBR.

Public companies must report their sales, profits and the state of the company's balance sheet every quarter.

The Trump administration has said it would like to reduce red tape it blames for a decline in public listings.

The SEC requires listed USA companies to issue quarterly and annual financial reports to keep investors informed about their financial position. Japan, though, moved in the opposite direction, gradually forcing companies to shift from semi-annual to quarterly reporting during the 2000s.

In a report published by the US Treasury previous year, the administration outlined policies it hoped would revitalize listings - but did not go as far as suggesting quarterly reporting requirements be scrapped. That was the argument made by Jamie Dimon, the chief executive of JPMorgan Chase, and investor Warren E. Buffett in a widely shared op-ed published by the Wall Street Journal in June.

"The president has highlighted a key consideration for American companies and, importantly, American investors and their families - encouraging long-term investment in our country", Clayton said.

Recommended News

  • Tyson Fury sets up Deontay Wilder fight after winning second comeback bout

    Tyson Fury sets up Deontay Wilder fight after winning second comeback bout

    Wilder, who interrupted Fury's weigh-in on Friday, was in attendance at Windsor Park to watch the Mancunian go the full 10 rounds against Pianeta.
    NYT Drops New Bombshell: Trump’s Lawyers Don’t Know What McGahn Told Mueller

    NYT Drops New Bombshell: Trump’s Lawyers Don’t Know What McGahn Told Mueller

    Mueller's investigation has resulted in several guilty pleas by people once connected to the Trump campaign for lying to the FBI. He also complained about a "disgusting new Board Member" at the Times , apparently a reference to the writer Sarah Jeong.
    Aretha Franklin dead: Queen of Soul passes away at age 76

    Aretha Franklin dead: Queen of Soul passes away at age 76

    While he didn't have a chance to talk with Franklin, he did get to practice with her the afternoon before the show, he said. Her dad pastored the church up until his death . "You are a legend and your soul will never be forgotten".
  • Teen Hacks Apple, Has Excellent Folder Name

    Teen Hacks Apple, Has Excellent Folder Name

    The Age said customer data had been accessed, and that the boy managed to obtain customers' authorised keys - their login access. An AFP raid on the boy's home revealed two laptops with serial numbers matching those of devices which had accessed the system.
    World's Oldest Cheese Discovered In Egyptian Tomb Contains Potentially Deadly Bacteria

    World's Oldest Cheese Discovered In Egyptian Tomb Contains Potentially Deadly Bacteria

    Nearby, they found a scrap of canvas fabric that was likely used to preserve and cover the ancient blob of food. Identifying B. melitensis represents the first biomolecular evidence of the disease from the Pharaonic Period.
    France top new FIFA rankings, Germany slump to 15th

    France top new FIFA rankings, Germany slump to 15th

    France have taken over top spot from Germany after beating Croatia 4-2 in the final to win the tournament for a second time. But an unexpected run to the quarter-finals, where they lost to Croatia on penalties, pushed them up 21 places to 49th.
  • Davis Cup makeover plans given the go-ahead

    Davis Cup makeover plans given the go-ahead

    The ITF's main concern has been the scarce presence of the Big 4 - Federer, Nadal, Andy Murray and Djokovic - in Davis Cup ties. The four semi-finalists from the previous year and two wild-card teams would join them in the 18-team year-end event.
    Cardiff fans fume as Kenedy kick escapes blatant red card

    Cardiff fans fume as Kenedy kick escapes blatant red card

    He added: "Last week we drew and today we lost, but we are playing the way we want and the team has a lot of things to improve". A Joe Ralls delivery picked out Sol Bamba's head, but he was denied by an outstretched leg from close range.
    Atal Bihari Vajpayee cremated, daughter Namita lights funeral pyre

    Atal Bihari Vajpayee cremated, daughter Namita lights funeral pyre

    Last night, Vajpayee's body was taken to his official residence on Krishna Menon Marg from AIIMS where he was admitted in June. From there it would be taken to the BJP headquarters tomorrow, where people would be able to pay their last respects.
  • Magnitude 3.2 Earthquake Strikes Near Big Bear: USGS

    Magnitude 3.2 Earthquake Strikes Near Big Bear: USGS

    Disaster mitigation agency spokesman Sutopo Purwo Nugroho said there were no reports so far of casualties or damage. The powerful tremors on 5 August damaged tens of thousands of homes and displaced hundreds of thousands of people.
    Omarosa Book: Trump Called Prime Minister Of Montenegro A 'Punk B----'

    Omarosa Book: Trump Called Prime Minister Of Montenegro A 'Punk B----'

    This past Sunday, Manigault Newman released a tape of White House chief of staff John Kelly firing her in the Situation Room. I've known Melania since she was engaged to Donald, not just married [to] him, engaged. " Donald Trump hits on all women".
    Aretha Franklin, the Queen of Soul, dead at 76

    Aretha Franklin, the Queen of Soul, dead at 76

    Franklin's health was known to have been declining since she announced the termination of her tours in February 2017. Franklin was born in Memphis , the daughter of an itinerant-preacher father and a musician mother.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.