CEO of Intershop: Banks Failed With Introductions To the Stock Exchange
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[Berlin, GERMANY] In a recent interview, Stephan Schambach of Intershop strongly criticized the supervision by banks in the introduction of Internet firms to the New Market. In a conversation with "Net-Business" on the growing number of companies who have missed their turnover and earnings goals, the CEO of Intershop said that finance capital had "failed dramatically." "To put it bluntly, they got every last shack onto the stock exchange," said Schambach, who called for stricter stock market supervision modeled on the Securities and Exchange Commission (SEC) in the USA.
The SEC has the right to order an audit of any company on the stock exchange with questionable accounts. This has often protected investors from major damages.
The fear that the entire New Economy will soon be broke is, according to Schambach, a "typically German exaggeration." He continued, "It's a completely natural development that, after the initial euphoria, a selection process is now taking place on the market," Rau explained.