Trump's newest plan to reshape Wall Street may sound familiar — because Hillary Clinton had the same idea

pulse

August 17, 2018 6:16 PM

President Donald Trump's tweet about moving companies away from quarterly earnings reports sounds a lot like one of Hillary Clinton's plans from the 2016 election. Clinton decried "quarterly capitalism" in an interview with Business Insider.

President Donald Trump asked the Securities and Exchange Commission to study changing from quarterly earnings reports to biannual reports, the president said in a tweet Friday.
Trump said moving away from the quarterly system would be good for job growth and companies.
The idea has a striking similarity to a plan from Trump's 2016 opponent, Hillary Clinton.

President Donald Trump weighed in on Wall Street's focus on quarterly earnings — and sounded a lot like his 2016 opponent.

In a Friday tweet, the president suggested that public companies should move away from quarterly earnings reports and instead report earnings every six months.

"In speaking with some of the world's top business leaders I asked what it is that would make business (jobs) even better in the U.S. 'Stop quarterly reporting & go to a six month system,' said one," Trump tweeted. "That would allow greater flexibility & save money. I have asked the SEC to study!"

If that sounds familiar, it's because it mirrors rhetoric from former Democratic presidential nominee Hillary Clinton during the 2016 election cycle.

During the campaign, Clinton denounced "

Now, I understand that most CEOs are simply responding to very real pressures from shareholders and the market to turn in good quarterly numbers. And investors are always looking for strong, reliable returns" Clinton said. "But it is clear that the system is out of balance — the deck is stacked in too many ways — and powerful pressures and incentives are pushing it even further out of balance."

Additionally, Clinton liked to point to an anecdote about a survey of corporate executives that found not one would invest in a five- to 10-year plan that would make their company more profitable if it took a cent off their share price.

So while Trump is bringing a renewed focus to the pressure on companies to hit quarterly targets, the idea was also championed by his one-time political rival.

Trump's idea is also similar to the proposal put forth by JPMorgan CEO Jamie Dimon and investing legend Warren Buffett. The two business giants urged companies to continue reporting earnings on a quarterly basis, but do away with forward guidance, or official forecasts about earnings for the quarter ahead.

pulse

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng