Recent Quote in Property Swap Regulation Article

Last Friday, an article titled "After Investors Lose Millions, Property Swaps Face Regulation" was released by Investor's Business Daily. Joe Gose, a freelance reporter, contacted some Qualified Intermediaries for comments on the Wall Street Reform and Consumer Protection Act that was approved by the House in December.

As I had previously commented here on the CFPA bill, he contacted me for comments. A previous blog entry I wrote stated some concerns about giving this new "super agency" sweeping and ill-defined powers that mandated who - and what - financial products can be offered to consumers. When Mr. Gose called and left a voice message, it seemed apparent he was intent on a certain "angle". His questioning were clearly fixed on writing an article that painted most of the industry against regulation. Nothing could be further from the truth.

This blog is filled with entries that indicate that I believe some regulation is necessary. I was fortunate to be part of a five FEA member committee that worked to ensure responsible legislation in Colorado. Many other FEA members have worked tirelessly to ensure proper 1031 legislation was passed in Nevada, California, Idaho, Washington, Oregon and Maine. As other states like Arizona consider legislation, the FEA is working with these states. The FEA has also worked diligently with federal officials to determine ways to properly regulate the industry on a national level.

My quoted comment to Mr. Gose was simply that I had concerns about the amendment added late in the game by Representative Michael Michaud (D-Maine). The amendment is brief, it is vague and it essentially places all the power to determine any future national 1031 regulation in the hands of a newly-formed CFPA Director. The bill contains no provision for public input or industry feedback in determining any planned regulation.

I was dissapointed to be incorrectly quoted as President of 1031 Corp and to read that our firm was "hardly clamoring for federal oversight". First, had the writer done some proper research, he would have found that our name is 1031 Corporation. Another Pennsylvania FEA member firm, Joe, is called 1031 Corp. It's also interesting that he picked our firm - one that is owned by a financially-sound bank, holds investor client funds in a segregated bank account, maintains a $25 M fidelity bond and is audited and regulated already by the FDIC, external and internal auditors - as somehow against consumer protection.

So, what's the reason/motivation for the incorrect quotes, Joe?