Sarbanes-Oxley challenges continue
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Sarbanes-Oxley challenges continue
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SCOTT JAGOW: If you run a business, the words Sarbanes-Oxley might make you cringe a bit. That law has piled new accounting regulations on companies. It’s designed to prevent Enron-type disasters, but a lot of people believe the law is hindering competition. Today, U.S. business leaders are expected to announce a new coalition that’ll push for changes to Sarbanes-Oxley.Ashley Milne-Tyte reports.
ASHLEY MILNE-TYTE: The Committee on Capital Markets Regulation is made up of business figures and academics.
Glenn Hubbard, former economic advisor to President Bush and dean of Columbia Business School, chairs the Committee. He says its purpose is not to overturn a slew of regulations, nor to remove the pressure on businesses to act ethically. Rather, it’s to make sure the rules work, and still allow businesses to stay competitive.
One of the results of tighter business regulations is that fewer foreign companies want to list on US stock exchanges.
GLENN HUBBARD:“Large emerging Asian companies that might have once preferred an American listing are deciding to list either in Asia or in Europe. These are not innocuous things for our economy, our capital markets are vitally important.”
He says the committee simply wants to find out which areas of regulation are costing the economy dearly and see what can be done.
In New York I’m Ashley Milne-Tyte for Marketplace.
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