SEC Pushes for More Transparency From Private Companies - WSJ

“When they’re big firms, they can have a huge impact on thousands of people’s lives with absolutely no visibility for investors, employees and their unions, regulators, or the public,” said Democratic SEC Commissioner Allison Lee, who has called for the change.

If investors aren’t given information to satisfy their due diligence requirements, then they won’t give the companies their money.

So why does the SEC need to be involved in private market transactions?

Ms. Lee, fellow Democratic commissioner Caroline Crenshaw, and key members of SEC Chairman Gary Gensler’s staff have all expressed a desire to draw more companies into the public markets. Doing so would also increase the impact of Mr. Gensler’s plans to scale up disclosure requirements for public companies around climate change and other issues, supporters say.

Oh, not to promote healthy markets, to encourage good governance, or for economics. It’s for purely ideological reasons.