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Laidlaw Wealth Management Boosts Investment Offering With Green Harvest Deal

Laidlaw Wealth Management Boosts Investment Offering With Green Harvest Deal

NEW YORK–(BUSINESS WIRE)–Laidlaw Wealth Management is pleased to announce that it is expanding its collaboration with Green Harvest Asset Management.

The relationship will give Laidlaw Advisors access to Green Harvest’s ProActive Tax Management investment strategies which are designed to provide investors with broad exposure to the equity and fixed income markets while maximizing after-tax returns.

Green Harvest Asset Management provides innovative, tax-beneficial investment solutions and services to help clients achieve their goals. The firm specializes in tax-loss harvesting strategies designed to provide tax benefits through portfolios comprised of low-cost, brand-name, exchange-traded funds (ETFs).

“This new expanded relationship substantially enhances Laidlaw’s investment offering and supports our commitment to provide truly innovative solutions for our clients,” said Ken Mathieson, Founding Partner of Laidlaw Wealth Management.

Rick Calhoun, CEO of Wealth Management at Laidlaw, went on to say, “We are thrilled to partner with Green Harvest Asset Management which is a leader in the field of tax-loss harvesting, especially in light of this incredible decade long increase in the markets that has created significant taxable gains in our clients’ portfolios.”

“We are very pleased to be working so closely with Laidlaw Wealth Management,” said Bob Holderith, CEO of Green Harvest. “Our strategies are only available through wealth managers and Laidlaw’s client centric approach makes them a great partner.”

About Green Harvest

Based in New York City, Green Harvest Asset Management was formed in 2017 by a team of seasoned ETF experts. Bob Holderith and Brian Jacobs designed Green Harvest to provide tax beneficial investment strategies for investors and the financial professionals that advise them. Green Harvest is a unique asset manager that deploys its proprietary technology and skilled traders to create portfolios of low-cost ETFs that seek to maximize after-tax returns. The firm is majority owned by its employees. In July of 2019, Resolute Investment Managers acquired a minority interest in Green Harvest.

About Laidlaw and Company

Laidlaw Wealth Management LLC is affiliated with Laidlaw & Company (UK) Ltd. Laidlaw & Co. is headquartered in New York City with additional offices in London, San Francisco, CA, Greenwich, CT, Boca Raton, FL and Melville, NY. Laidlaw and Company (UK) Ltd. was founded in 1842 as one of the first Investment Banking firms on Wall Street and continues as a full service investment bank, brokerage and Wealth Management firm offering personalized investment advice for high net worth individuals and skillful execution to private and public institutions.

Contacts

Scott Abry
Abry Advisors, LLC
203-253-6018
scott@abryadvisorsllc.com

Laidlaw Wealth Management Boosts Investment Offering With Green Harvest Deal2020-01-12T22:30:14+00:00

Laidlaw’s ‘Brighter Future’ Comes Into Focus; Richard Calhoun, Former Wells Senior Executive, Brought on as CEO of Laidlaw Wealth Management

Laidlaw’s ‘Brighter Future’ Comes Into Focus; Richard Calhoun, Former Wells Senior Executive, Brought on as CEO of Laidlaw Wealth Management

Addition of Highly Regarded Industry Leader Signals Confidence in Growth Plans, Expansion of Leadership Team and Company Footprint

NEW YORK–(BUSINESS WIRE)–Laidlaw Holdings LTD, the holding company for Laidlaw Wealth Management, Laidlaw Capital Markets and Laidlaw Private Equity, today announced that Richard J. Calhoun, Jr., the former Head of Innovation and Growth for Wells Fargo Advisors Financial Network (FiNet), has joined as the Chief Executive Officer of Laidlaw Wealth Management and the sixth member of the firm’s Board of Directors.

Matt Eitner, Laidlaw’s CEO, made the announcement internally yesterday: “I am excited to have Rick join us. As our search progressed, it became clear that Rick stood above all other CEO candidates. He is a highly regarded industry leader and he shares the same culture and values as Laidlaw. Rick’s reputation, 28 years of industry experience and list of accomplishments are exceptional.”

Mr. Calhoun said the following: “I did a thorough Due Diligence on Laidlaw, particularly getting to know the people. The transformation that has occurred under Matt’s leadership has been extraordinary. Matt and his team have created a culture, enthusiasm and energy sorely missed in our industry. They have also put together what I believe is a highly dynamic value proposition sure to attract top advisors and management candidates.”

The New Laidlaw offers a Value Proposition designed to reward its existing partners, and attract a defined number of top-level advisors, investment bankers and senior executives. The company’s detailed and thoughtful long-term business plan combines the best elements of Laidlaw’s 177-year history with a cutting-edge platform, new technologies, and an expanded offering of products and services.

Mr. Eitner continued, “We needed a CEO with broad experience and proven success building a best in class offering for our clients. In Rick’s career he has had responsibility for Practice Management, Business Development, Recruiting, Products & Services and M&A. He has been a Financial Advisor, Branch Manager, Regional Director and most recently President and equity partner of a private investment management company. He understands our business and our industry from every angle, but more importantly he understands and cares for people.”

The Founder and Former CEO of Steward Partners, Mike Maurer, who serves as an Independent Board Director for Laidlaw said, “Without question, Rick was the best person for the role as CEO of Laidlaw Wealth Management. The company’s business plan is complex. He understands it and has demonstrated time and time again his Leadership skills and ability to execute.”

Mr. Calhoun continued, “Our Newly designed company is distinct far beyond what the public currently knows about Laidlaw. I am thrilled to be part of such an exciting future. I look forward to working closely with Matt, Mike and the entire leadership team to help Laidlaw forge a new path to a brighter future.”

Contacts

Scott Abry
Abry Advisors, LLC
203-253-6018
scott@abryadvisorsllc.com

Laidlaw’s ‘Brighter Future’ Comes Into Focus; Richard Calhoun, Former Wells Senior Executive, Brought on as CEO of Laidlaw Wealth Management2020-01-06T17:54:14+00:00

David Garrity discusses cloud computing…

David Garrity discusses cloud computing…

1) Bloomberg: https://www.bloomberg.com/news/videos/2019-10-28/growing-scrutiny-over-big-tech-video

2) Twitter: https://twitter.com/GVAResearch/status/1188839679501713408?s=20

3) Linkedin: https://www.linkedin.com/feed/update/urn:li:activity:6594605749333213184/

1) Tech – Cloud Computing Growth Remains Solid, But Quality Control Issues Threaten Tech Majors: One of the major shifts of interest to investors has been that of enterprise computing to “cloud” platforms. In this regard, there have been three major competitors – AMZN, GOOGL & MSFT. While GOOGL results won’t be out until after the close Mon 10/28, the indications from AMZN (AWS 3Q19 revenues $9bn, +34.7% year/year vs. +37% y/y in 2Q19) and MSFT (Commercial Cloud 3Q19 revenues $11.6bn, +36% y/y) indicate that while cloud adoption growth is decelerating from earlier levels, it still remains quite solid. With major growth areas such as cloud computing remaining robust, the near-term prospects for the tech sector remain positive. However, there are issues that should concern investors in terms of quality control that need to addressed as the major tech companies have become greater factors in consumer markets. For example, AMZN has been found to be delivering rotten food to consumers as it does not monitor its inventories to exclude items that have gone past their “sell by” dates. Also, AMZN has been using clothing production sources that have been shunned by others for unsafe work practices. As such, AMZN is likely to draw the attention of regulators. The company would do best to clean up its own act before others do it for them. Relative to FB (reports after the close Wed 10/30), CEO Mark Zuckerberg has been conducting speaking and testimony tour in Washington, DC in which he has tried to claim First Amendment rights for the company’s “disinformation for profit” business model. While that might accord well with the preferences of the current Administration, the political tide is clearly shifting in ways that will require FB and other social media companies to meet the content standards (e.g. factual truth) that other more traditional news and media organizations have upheld for years. Time to become accountable, Mr. Zuckerberg.

2) Markets – High Yield Spreads Do Not Call For Recession In 1H20: While indications are that the Administration’s self-inflicted trade war with China has brought sectors (i.e. manufacturing, agriculture) representing roughly 20% of the US economy into recession, it is useful to look to areas of the financial markets that historically served as harbingers of recession to see whether there will be follow-through to the broader economy. In this regard, a cursory examination of the interest rate spreads between BB and BBB corporate bonds is useful.

Here is a chart comparing monthly average BB to BBB yields back to 1997:
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Here is the chart of BBB spreads back to 1997:
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The data show the following:

A) The average BB/BBB spread from 1997 to now is +164 basis points. As with BBB spreads, these tend to widen ahead of recessions. From January to December 2000 they increased by +62 basis points. In 2007, BB/BBB spreads widened by +130 bp over the course of the year. Current BB/BBB spreads sit at +74 bp (BB: +223 bp, BBB: +149 bp). The conclusion is this marginal slice of the US corporate junk market shows little concern regarding an imminent recession.

B) BB spreads over BBB are well below long-run averages. The only times this spread shows similar tightness is March 2005 and the first half of 2007. As the chart clearly shows, there is no move higher for BB spreads underway right now. Not pictured but worth mentioning, the current +74 basis points is lower than October 1st (+81 bp) and flat versus a month ago (+73 bp).

Based on the above, corporate bond markets see little likelihood of a US recession or a material chance of weaker corporate cash flows in the near future. The bearish argument is that ultra-low interest rates have permanently skewed corporate bond payouts to the downside as asset owners reach for yield, thereby limiting their predictive power and setting up a pretty large cliff for these assets when recession does hit.

Separately, note recent WSJ article highlighting how ratings agencies have been giving remarkable leeway to BBB companies, a sentiment echoed by several investment banks of late. Rating agency credit rating laxity historically leads to financial crisis as it leads to risk being mispriced. Caveat emptor.

David Garrity discusses cloud computing…2020-01-15T02:37:18+00:00

Seven Questions with Tony Sirianni

Seven Questions With Tony Sirianni: Laidlaw Wealth Management LLC.

AdvisorHub’s CEO Tony Sirianni sits with established leaders of the largest firms, as well as up and coming disruptors, so advisors can get a sense of how each firm addresses the same issues from different perspectives.

Ken Mathieson is the Founding Partner of Laidlaw Asset Management LLC. LAM is an SEC Registered Investment Advisor affiliated with Laidlaw & Co ( UK ) Ltd. Established over 175 years ago in 1842, Laidlaw is a truly global, multi custodial wealth management firm. Offices are in NYC, San Francisco, Boca Raton, Boston, Long Island and London.

Question: Why Did you get into this business in the first place?
Answer: My father, grandfather and all of my uncles were policemen. Listening to their stories and the hardships of being a policemen in the 60’s and 70’s really turned me off. In particular, my father was passed up for a promotion (and pay raise) for many years because of societal pressures that were out of his control. The idea that you could work hard, be a loyal employee and not be rewarded just seemed unfair. I wanted to work in an industry that rewarded hard work, loyalty and brotherhood. Like my father I also wanted to help people. I saw that helping people plan for their financial future and the ability to retire enjoying all that hard work was what I wanted to do. Wall Street was a natural fit.

Question: Looking back at the changes over the last 15 years, which have been the most damaging to our business in your opinion? What have been the most exciting and positive?
Answer: The quick answer is pricing pressure from the perspective of an advisor, but I’m not sure that is the most damaging. Wall street has been dealing with pricing pressure for decades. I believe that the most damaging has been lack of transparency and the loss of client trust. Hence the movement away from brokerage and a suitability standard and a movement toward the RIA model with its Fiduciary Standard. In my opinion, the most exciting and positive has been the democratization of Wall Street. When I started working, your only option to getting into the business was to join a firm’s training program, a large firm if you were lucky. The big Wall Street firms controlled all of the trading, all of the research and all of the market access. Today, I believe that power has shifted. Fifty years ago there were thousands of small brokerages. Thanks to visionaries like Sandy Weill, they have all been consolidated and today just a few dominate. Now we see tens of thousands of small firms leveraging large custodial infrastructures and a few major RIA’s and independents. The recent news that Wells Fargo and UBS (and others) are now risking the cannibalization of their business, or in their mind, stemming the outflows of advisors and client assets by launching RIA units, speaks to this point.

The most exciting part is the use of technology and how it allows advisors to better serve their clients and to break away from the wire houses. We use Charles Schwab as a custodian and each year I attend their Impact Conference. It is amazing to attend and learn about all of the vendors and tools that are available to independents. You quickly understand the amazing ecosystem that supports our industry.

Question: How has your firm adapted to address the rapidly changing Wealth Management landscape?
Answer: We are in a very unique position as we are a 177 year old Investment Banking and Brokerage boutique that can adapt very quickly to the changing landscape. Matthew Eitner, the CEO of Laidlaw, recognized that he needed a more robust Wealth Management offering to compliment our Investment Bank and Private Equity offerings. Hence, we created an SEC Registered RIA with an open architecture and best in class custodians, global capabilities, cutting edge technology and a very generous compensation structure with the same class equity ownership as the founders. I have been in the business for over 30 years, mostly as an advisor in a wire house. Five years ago, I moved to be a Founder in an Independent, W2 model firm. That firm executes on a captive platform and I realized that to be part of the future, advisors would want more options and capabilities to meet their clients sophisticated needs. No single custodian can best facilitate all of your client’s needs. That is what we created at Laidlaw.

Question: What part of the Advisor business will never change?
Answer: Trusted advice from a trusted advisor, period. It will always be about the Advisor / Client relationship. Look at what happened when Robos were going to put advisors out of business because millennials wanted technology so they could do it all on their own. That did not and will not happen because they still want a relationship with an advisor.

Question: What 3 things differentiate Laidlaw from the competition?

Answer: Laidlaw Asset Management is a partnership in name and in practice. Every advisor who brings fee based assets to the firm owns shares in the firm and is treated as such.

  • As a Universal Wealth Management firm, Laidlaw can help clients in over 170 countries. We are dually registered, holding a U.S. registration and an FCA registration in the U.K. We see the wire houses limiting the countries that their advisors can service all of the time. I see this trend continuing.
  • Laidlaw has a unique opportunity to leverage our Investment Bank. Because of our wealth management capabilities, we can help our corporate clients with stock plan administration, 401k, cash management and financial planning for the employees. Most wire houses limit the number of advisors who can do this business. At Laidlaw we are looking for qualified advisors to help us. Look no further than the recent acquisition of Solium by Morgan Stanley. This is big business and will be a major driver for Laidlaw and our advisors.

Question: Would you encourage your children to enter the Wealth Management business?
Answer: The wealth management business is an amazing career choice for many, but it isn’t for everyone. I have three children. I’ve encouraged my oldest to work at Laidlaw. As for the other two, time will tell.

Question: What are your interests outside of the Wealth Management biz?
Answer: My interest outside of work is being a dad. If that means watching a lacrosse game, traveling or cooking with my children etc., than that is what I am interested in, family first. It is also big part of our culture at Laidlaw as we are a young senior management group with families that understand the importance of a well-balanced life.

Seven Questions with Tony Sirianni2020-01-06T17:51:41+00:00

Laidlaw on a Recruiting Tear in 2019

Over Half a Billion Recruited in First Half of Year With Recent Addition of $250 Million, 35-Year Morgan Stanley Veteran

NEW YORK, NY, USA, June 20, 2019 /EINPresswire.com/ — Laidlaw Wealth Management is pleased to announce the continued growth of its wealth management business. As of Q2 2019 Laidlaw has recruited advisors from Morgan Stanley and Merrill Lynch with assets of over $560 Million AUM.
An affiliate of a 177-year-old Broker Dealer, Laidlaw Wealth Management has been enhancing and expanding its open architecture offering to provide innovative solutions and services for its partners and clients. This expansion, along with a boutique environment and partnership culture has been attracting advisors looking for a unique experience for themselves and their clients. Laidlaw leverages its deep industry knowledge, vast network of specialized services and a passion for serving clients with clarity and transparency.

The advisors all joined Laidlaw’s NYC Headquarters. However, many more recruits are in discussions to join Laidlaw’s other offices in San Francisco, Boston, Long Island, Boca Raton and London.

The most recent advisor to join, Mel Lewis from Morgan Stanley, spent his entire career at the same place starting at E.F. Hutton and working through the many different ownership changes over those years. “I felt like it was time to make a change. I wanted to get back to a firm with a similar culture and commitment to my clients and me that I felt at E.F. Hutton. Laidlaw stands out as a firm that offers that environment.”

Matt Eitner, CEO of Laidlaw said, “We are honored that an advisor like Mel who has never moved firms would embrace the special culture and client experience we have created enough to make that difficult decision, he represents the type of advisor we are all about.”

The onboarding was led by Keith Hassan, Founding Partner of Laidlaw Asset Management. “Mel has a great reputation, years of experience in the business servicing his longtime clients and providing seasoned investment advice like we do here at Laidlaw, he is a perfect fit, said Keith. “In addition to senior advisors like Mel, we have also brought on several other advisors from Merrill Lynch and Morgan Stanley that were looking for an environment that would help them grow their business, give their clients a higher touch service and provide ownership in the firm, in essence being a partner.”

About Laidlaw & Company, LTD
Laidlaw was founded in 1842 as one of the first Investment Banking Boutiques in America. The firm has a 177-year legacy of independent investment banking and securities brokerage focused on the needs of domestic and international companies, corporate entrepreneurs, institutions and private clients worldwide.
A growing network of offices in the United States and the UK operating under dual FCA authorization and FINRA registration, allowing the firm to develop relationships, pursue new business and service individual clients on a global basis.

A healthcare focused investment banking and capital markets team of predominantly senior professionals combining ‘bulge’ bracket experience with an entrepreneurial ‘independent’ firm perspective with the goal of providing experienced, ‘hands-on’ transaction management and comprehensive solutions.

The ability to assist emerging companies quickly raise capital through our strong retail sales force, which allows our corporate clients the financial flexibility to grow.

Patrick Clancy
AdvisorHub
+1 540-883-3116

Ken Mathieson
Founding Partner
Laidlaw Asset Management LLC
521 Fifth Ave 12th Flr
NY NY 10175

Phone 212 953 4984
Cell 201 693 7347
kmathieson@laidlawam.com

Laidlaw on a Recruiting Tear in 20192020-01-06T17:47:45+00:00

Why Amazon might be more at risk than Facebook amid antitrust concerns

Watch David Garrity explain why Amazon may be at more antitrust risk than Facebook.

David Garrity, chief market strategist from Laidlaw and Company U.K and Dan Ives, managing director of equity research form Wedbush Securities, join CNBC’s “Closing Bell to give their take on which tech companies are most at risk from antitrust concerns. Click on the picture below to see the video…

Why Amazon might be more at risk than Facebook amid antitrust concerns2020-01-12T22:06:19+00:00

David Garrity Discusses the Impact of the Trade War with China

David Garrity Discusses the Impact of the Trade War with China

Follow the links and read more below:

1) Bloomberg: https://www.bloomberg.com/news/audio/2019-05-28/we-are-in-a-technology-cold-war-laidlaw-s-garrity-radio

2) LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:6539488934144073729/

3) Twitter: https://twitter.com/GVAResearch/status/1133724593385029632

1) Tech – Whoever Builds The 5G Platform First Sets The Standards And Thus The Rules Of The Game: Published in 2015, the same year the PRC State Council laid out the “Made in China 2025” Plan (MIC2025) under which China would become a global powerhouse in ten high-tech fields from artificial intelligence (AI) to aviation, the novel “Ghost Fleet” depicts a possible global conflict scenario in which the United States (and by extension its allies) are defeated in large part due to the use of PRC-made components in its weapons systems that render them subject to enemy control and thus useless in wartime. While the novel depicted an update to the time-honored theme of the Trojan Horse in making the reader wary of accepting gifts from strangers, it did not anticipate the challenge now presented by the technology shift from 4G to 5G communications networks. In April 2019, the Defense Innovation Board, an advisory board of tech sector leaders to the U.S. Department of Defense, issued a report warning that the PRC is on track to pull off a “first-mover advantage” in the competition to dominate 5G mobile telecommunications. Note that 5G promises to revolutionize existing industries and invent entire new industries with data speeds of approximately 20x those of 4G. In the state-controlled economy that is the PRC, the primary competitor here is Huawei, the company that has become a focal point in the current U.S.-China trade war as the current U.S. administration is lobbying allies aggressively to keep Huawei equipment from being installed in their countries’ telecommunications infrastructure. However, “In public and private statements, American intelligence officials and telecommunications executives and experts have begun to concede that the United States will be operating in a world where Huawei and other Chinese telecom companies most likely control 40 to 60 percent of the networks over which businesses, diplomats, spies and citizens do business.” With the prospect of a PRC 5G “first-mover” advantage, the U.S. will be operating in a world where it is not setting the standards, a world where networks are possibly subject to PRC state control and thus compromised, or “dirty networks.”

2) Tech – China Needs To Push Hard To Establish Regional Hegemony As Demographics Work Against It: While the rapacious nature of PRC-led misappropriation of technology intellectual property is well-known as the country seeks to attain its MIC2025 goals, one perhaps under-appreciated factor prompting the PRC’s need for speed is that fact that its demographic profile is in many ways reminiscent of that Japan faced in the 1980s in which the country was clearly seen to face a rapid increase in its elderly population, something that has clearly occurred. According to researcher China Power, the percentage of Chinese above the retirement age is expected to reach 39 percent of the population by 2050. At that time, China’s dependency ratio (the number of people below 15 and above 65 divided by the total working population) is projected to increase to 69.7 percent, up from 36.6 percent in 2015. Add to this negative development the PRC’s gender imbalance in which the country has 70mm more men than women and we are left with the sense that the PRC has internal pressures to establish dominance regionally while it has a demographic “window of opportunity,” something that raises the odds of conflict intensifying over the next 5-10 years.

3) Tech – A War By Any Other Name Is Still Conflict All The Same As PRC Conducts An Unchecked Cyber War: Apologies to Shakespeare, but one may say that all is fair in love and war and so it is in the ongoing and unceasing cyberwar that the PRC is waging against the US and its allies. Granted the PRC is far from alone in this new front of global conflict, but it is among the most persistent and the most pernicious of state actors seeking to penetrate critical infrastructure and to steal intellectual property so as to further its ambitions under MIC2025. While cyberwar is a silent war, it is war nonetheless and there should be no illusions otherwise.

Please find disclosures below.

Disclosure – Ownership:

Personal: BTCS
Family: AAPL, INTC, MSFT, PYPL
Firm: AAPL, INTC, MSFT

David Garrity Discusses the Impact of the Trade War with China2020-01-12T22:04:35+00:00

Big Tech Regulation Risk & Implications

David Garrity on Big Tech Regulation Risk & Implications

Follow the links and read more below:

1) Bloomberg: https://www.bloomberg.com/news/audio/2019-05-28/we-are-in-a-technology-cold-war-laidlaw-s-garrity-radio

2) LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:6539488934144073729/

3) Twitter: https://twitter.com/GVAResearch/status/1133724593385029632

1) Tech – “Big Tech” Breakup Proposals on 2020 U.S. Presidential Election Radar: Legislators’ interest in investigating and potentially regulating the tech sector has been building since the 2016 U.S. general elections. Concrete proposals have been coming forward since Senator Elizabeth Warren (Democrat, MA) on Fri 3/18/19 as part of her 2020 Presidential election bid put forth a proposal that would result in substantial controls and possible break-up being imposed on tech companies with revenues in excess of $25bn with a specific focus on Alphabet, Amazon and Facebook.

In the proposal, Senator Warren picked up on the September 2017 Yale Law Review article by Lina Khan (“Amazon’s Antitrust Paradox”) which argued that “Amazon is amassing structural power that lets it exert increasing control over many parts of the economy.” The concept of “structural power” breaks with more traditional tests of anti-competitive behavior such as the unilateral ability to set prices. “Structural power” goes beyond pricing power to touch on a company’s ability to determine the market access of other companies, much as railroads controlled market access in the last half of the 19th Century. In Khan’s view, “the thousands of retailers and independent businesses that must ride Amazon’s rails to reach market are increasingly dependent on their biggest competitor.”

Senator Warren has moved to translate the concept of “structural power” into an anti-monopoly legislative and regulatory program. Namely, companies with over $25 billion in revenue that offer the public an online marketplace/exchange/platform for connecting third parties would be designated a “platform utility”. Accordingly, such companies would not be able to participate in the platform they operate (e.g. Amazon would have to stop selling its own products on its website). If elected President, Warren would also appoint regulators committed to reviewing and potentially reversing previous acquisitions (e.g. Amazon/Whole Foods, Facebook/Instagram, Google/Waze).

2) Tech – Anti-Monopoly Policy Is Competition Policy Which Needs To Be Set In Global Context: U.S. Anti-monopoly policy was last substantially updated in 1949, a point in time where policy makers were primarily concerned with the domestic U.S. economy as the global economy was only just beginning to recover from the devastation of WWII. Now, with a global economy no longer as dominated by the U.S. and one challenged increasingly by the government-led technology sector’s development in the PRC, policy makers need to think in terms of a larger global stage.

As the PRC’s “Made In China 2025” plan clearly spells out, it is China’s intent in concert with Chinese technology companies (e.g. Alibaba, Baidu, Tencent) to dominate critical emerging technologies such as AI, autonomous vehicles & others. In this sense, anti-monopoly policy if it results in U.S. technology companies not having sufficient economic scale to support their own emerging technology development efforts may have significant national security ramifications. In essence, in the 21st Century context, technology development has become like diplomacy before it, “the continuation of war by other means.” Consequently, Senator Warren’s proposal while a positive development in moving forward the idea of increased regulatory oversight for the technology sector needs to consider the current and likely future realities against which it would be implemented.

3) Tech – Not All Tech Companies Created Equal, Some Names Merit Greater Oversight And Possible Breakup: It is difficult to say that social media technology companies such as Facebook and Twitter are critical to the future national security of the US, especially given the substantial lapse in necessary vigilance around the 2016 Presidential election, but nevertheless should for these very reasons be subject to increased regulatory oversight. To this end it is our view that following a thorough in-depth examination from economic and national security perspectives that current anti-monopoly policy be developed and then applied to the technology sector.

Big Tech Regulation Risk & Implications2020-01-06T17:45:05+00:00
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