The Brokaw Act, named for a town that, essentially, collapsed after a former USW-represented Wausau Paper mill closed in Brokaw, WI. The bill has been re-introduced this year as a bi-partisan effort sponsored by Tammy Baldwin (D-WI) and co-sponsored by David Perdue (R-GA). If enacted, the legislation could significantly restrict the ability of hedge fund activists to take minority stakes in companies and force them to make major changes.

            The Brokaw Act aims to rewrite the rules of the U.S. economy by increasing transparency and strengthening oversight of activist hedge funds that are “abusing weak securities laws to gain large stakes in public companies,” Baldwin wrote.

            “Congress has long recognized the potential for abuse when activist hedge funds form loose associations of wolf packs and tip allies to an impending disclosure,” Baldwin wrote. “In fact, Wall Street reforms passed in 2010 explicitly gave the Securities and Exchange Commission the power to address this problem, yet the SEC has been unwilling to use this authority.”

            To read more information on the Brokaw Act, copy and paste the following link into your browser: https://wausaupilotandreview.com/2017/08/31/brokaws-woes-inspire-proposed-hedge-fund-legislation/