Bloomberg today reported that the Alibaba offering is sailing through regulatory review at the SEC. That is not surprising, since it appears Alibaba assembled an army of advisors to make that happen.
Senator Robert Casey of Pennsylvania wrote to SEC Chairwoman Mary Jo White to ask her to focus on the VIE structure and the risks it poses for American investors. Casey asked the SEC to give him an analysis of how the SEC reviews VIEs. I hope he releases that analysis.
I think the SEC is doing its job with respect to VIEs. The quality of disclosures has improved significantly over the past few years. Investors who read those disclosures are informed, and they obviously think that the risks are worth taking.