John Sarbanes: “These distinguished law professors stated: We . . . believe that Congress should wait to ascertain the effects of the…”

“These distinguished law professors stated: We . . . believe that Congress should wait to ascertain the effects of the 1995 Act, as well as the direction of state law, before enacting any legislation that would undercut the longstanding role that state law has had in protecting investors from securities fraud. These distinguished academics oppose any legislation that would deny investors their right to sue for securities fraud under State law. Similarly, the New York State Bar Association opposes this bill. A report prepared by the Bar Association Section on Commercial and Federal Litigation concluded: "The existing data does not establish a need for the legislation," and, "the proposed solution far exceeds any appropriate level of remedy for the perceived problem." Let me repeat that quote from the report prepared by the New York State Bar Association Section on Commercial and Federal Litigation: The proposed solution far exceeds any appropriate level of remedy for the perceived problem. The opposition goes on. As additional examples, I cite a March 30, 1998, editorial from the National Law Journal entitled "What's the Rush?" This editorial concludes: The Senate should pause before it neutralizes State laws that still stand as a bulwark protecting investors against flimflam artists.”