Sarbanes Oxley Act

[crreid]

Sarbanes Oxley Act

All of this comes from Wikipedia...

Ron Paul criticized the Sarbanes Oxley Act stating that it was an "unnecessary and costly government intrusion into corporate management that places U.S. corporations at a competitive disadvantage with foreign firms, driving businesses out of the United States."

My friend argued that this was a much needed law to stop white collar crime, usually I side with Ron Paul and was wondering what he would do to reduce the "number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation's securities markets."

Thanks

Sorry if I messed something up first time commentor and what not...

[nathanmn]

I'm not extremely knowledgeable on this subject, but I think there are some international accounting rules that would work just fine, but Sarbanes-Oxley takes a lot of undue time and money to comply with. Basically(pulling these numbers out of the air), if compliance costs are 10 billion a year, and it only prevents a billion dollars worth of fraud, its a huge net loss.