The politics of Sarbanes-Oxley

Sarbox isn't exactly a political issue. But you get the sense that there is a fairly strong movement afoot to ensure the law evolves in ways that are slightly more favorable to companies. That could be good news for you, but the devil will surely be in the details. For the moment, President Bush has gone on record that Sarbox could use some fine tuning. SEC Chairman Chris Cox is likely of a similar mind; it will be interesting to see the guidance proposals that will be discussed in December. New Treasury Secretary Henry Paulson has been something of an attack dog on the perils of the law, and Dick Cheney has joined the battle. Here's more on the work of the Committee on Capital Markets Regulation. Some conservative think tanks are pressing for a rollback. There could be some unintended consequences. Many of you have achieved a steady state regarding compliance. This could tip the ship, resulting in more costs and new processes in the name of simplicity. We'll have to reserve judgment for the moment.

For more on the movement to rollback Sarbox:
- read this New York Times article