A prolonged government shutdown could stop Wall Street activities, including new bond and stock issues. Regulators need to register new securities issues, and if they aren't working, initial public offerings as well as mergers and acquisitions could be put on standby as they await regulatory bodies to return to work, CNBC reports.
If there's nobody to process necessary filings at the Securities and Exchange Commission, the Federal Trade Commission and the Department of Justice, then businesses might just have to wait until politicians agree on a budget.
|NYSE traders (Getty photo)
The Securities and Exchange Commission has said that enforcement and market surveillance activities will operate normally amid a shutdown, although it will cease some of its functions in the event of a shutdown.
"If Wall Street were unable to perform many of its functions for weeks, it could impact revenues this quarter," CNBC reports. Republican and Democratic leaders in Congress are working to approve a budget and avoid a government shutdown.
President Barack Obama has said he hopes to announce a deal, but adds he isn't too overly optimistic that a government shutdown can be avoided.
Republicans want to slash more spending than do Democrats, and they want provisions to cut off federal funds to Planned Parenthood and stop the Environmental Protection Agency from issuing numerous anti-pollution regulations.
"They're difficult issues. They're important to both sides and so I'm not yet prepared to express wild optimism," Obama says, according to the Associated Press.
© 2017 Newsmax Finance. All rights reserved.