ETFs and the Present Danger to Capital Formation

By Global Economics Group on October 25, 2011

On October 19, 2011, GlobalEcon’s Senior Advisor Robert Litan, along with Harold Bradley of the Kauffman Foundation, testified before the United States Senate Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investments regarding ETFs and their present danger to capital formation.

Robert Litan says that ETFs have increasingly distorted the role of equities markets in capital formation while posing a greater systemic risk than high-frequency, or algorithmic, trading.

To read their entire testimony, click here.

To watch Robert Litan on Reuters Video, click here.