http://blogs.reuters.com/commentaries/2009/07/09/are-ious-securities/ Now raising intellectual capital Sat, 18 May 2013 10:41:19 +0000 hourly 1 http://wordpress.org/?v=3.4.2 http://blogs.reuters.com/commentaries/2009/07/09/are-ious-securities/comment-page-1/#comment-826 David Grant Sat, 11 Jul 2009 06:07:38 +0000 http://blogs.reuters.com/commentaries/?p=997#comment-826 There is no regulation or statute that provide the SEC the legal authority to regulate IOU's. That is utter nonsense. To say the SEC regulates IOU's is to say the SEC regulates third party checks. A muni bond is a contractual obligation to repay money lent. An IOU is a way to delay payment of a debt for products/services rendered. Furthermore, the largest banks in the nation, with all their power, money and financial expertise are refusing to accept them. Bear in mind the State of California has had financial distress for several years, and negotiations have been going on for several months, there is no guarantee these IOU's will be redeemable at all. Therefore, receiving ten cents of the dollar for your IOU may in fact be very reasonable. There is no regulation or statute that provide the SEC the legal authority to regulate IOU’s. That is utter nonsense. To say the SEC regulates IOU’s is to say the SEC regulates third party checks. A muni bond is a contractual obligation to repay money lent. An IOU is a way to delay payment of a debt for products/services rendered. Furthermore, the largest banks in the nation, with all their power, money and financial expertise are refusing to accept them. Bear in mind the State of California has had financial distress for several years, and negotiations have been going on for several months, there is no guarantee these IOU’s will be redeemable at all. Therefore, receiving ten cents of the dollar for your IOU may in fact be very reasonable.

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