Another unintended consequence: high cash levels

Federal Reserve Governor Kevin Warsh observes that the current economic expansion is notable for its historically high levels of cash and short-term securities, which have been building since 2001. What's more, the ratio of cash to investment, which has averaged roughly 60 percent for decades, abruptly accelerated to 150 percent  by the end of 2004. What's going on? There's a host of reasons, but a major one, he argues, is that Sarbanes-Oxley has led corporations to a risk-averse mentality. It has diverted not only funds but time and energy that could have been devoted to more strategic concerns.

> Check out the article from CFO.com.