Bessent: Trump’s push to scrap quarterly company reports will be a win for investors
News Summary
U.S. Treasury Secretary Scott Bessent stated that President Donald Trump’s proposal for companies to report on a semiannual basis would be beneficial for investors. Trump believes this move would allow executives to focus on long-term goals rather than short-term metrics and help cut costs for public companies. Bessent noted that the initiative aims to address the atrophy of U.S. public markets and align the U.S. with many foreign jurisdictions, like the UK and EU, that already follow a semiannual reporting regime. However, some investors, particularly the Council of Institutional Investors (CII), have previously warned that quarterly reports help protect investor interests by providing greater transparency.
Background
The current year is 2025, and Donald J. Trump is the incumbent U.S. President. The number of publicly listed companies in the U.S. has declined from over 7,000 in 1996 to less than 4,000 in 2020, partly due to increased scrutiny and compliance costs associated with quarterly reporting, leading many companies to remain privately held. The Trump administration generally favors reducing corporate regulatory burdens to stimulate economic growth and enhance the competitiveness of U.S. markets. Globally, countries like the UK, EU, and Hong Kong typically employ semiannual reporting for listed companies, whereas U.S. companies are generally required to report quarterly, with exceptions for foreign private issuers. The Council of Institutional Investors (CII), a group representing pension funds, has previously raised concerns about the lack of transparency and impact on investor protection if quarterly reporting is abandoned.
In-Depth AI Insights
What are the true underlying strategic motives for the Trump administration pushing this change beyond the stated benefits? - Capital Attraction & Market Competitiveness: The core aim is to enhance the attractiveness of U.S. capital markets, especially amid sluggish global listing activity and European companies seeking higher valuations. By reducing compliance costs and short-term performance pressure, the U.S. seeks to attract more companies (including European firms and U.S. companies otherwise opting to remain private) to list in the U.S., thereby solidifying its position as a global financial hub. - “America First” & Deregulation: This aligns perfectly with the Trump administration's consistent