Henry Paulson

Paulson will take a look at audit industry

Tue, 09 Oct 2007 06:59:59 -0400

Blue ribbon-type committees are usually formed in the wake of some perceived crisis, like the nation's financial competitiveness. Sarbanes Oxley has been one reason for the spate of committees that we've seen recently. And now there is one more. This one will take a look at the accounting industry. Henry Paulson, Treasury Secretary, has been concerned that the system places perhaps too-heavy a burden on accounting firms to sniff out problems. That has led to the cover-your-butt approach that AS5 is trying to undo. In light of AS5, it will be interesting to see what more specific steps the Treasury committee can come up with. For what it's worth, Arthur Levitt and Paul Volcker are on the committee.

For more:
- here's an article from the AP

Related articles:
- More AS5 tips for small companies
- Will AS5 finally ease the tense standoff?
- Will AS5 really make compliance easier?

More on the politics of Sarbox

Mon, 27 Nov 2006 19:01:39 -0500

Republicans and Democrats agree that Sarbox is in need of reform. But there is a fine line between relief for Corporate America and a disregard for shareholders and the public. The incoming chairman of the Senate Banking Committee will be facing these issues very soon. Chris Dodd, the Democrat from Connecticut, has already signaled that he was satisfied with Sarbanes-Oxley. Satisfied? That is not something we have heard from Democrats or Republicans. Most are firmly on the big reform bandwagon. But Dodd has so far not agreed with this crowd and is speaking up for shareholders and transparency. I find this oddly refreshing. At least he's willing to be different. In the end, this minority view likely will not prevail given the current mood. But it will be interesting to see what he says as the reform effort proceeds.

For more:
- read this New York Times article

PLUS: Newly elected New York governor Eliot Spitzer is suspicious of attempts to rollback Sarbox. Article

ALSO: The Committee on Capital Markets Regulation, formed by Henry Paulson, will release a study this week that will promote Sarbox reform. Article

The politics of Sarbanes-Oxley

Mon, 30 Oct 2006 19:01:39 -0500

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

Can the Committee succeed in reforming law?

Mon, 18 Sep 2006 20:01:39 -0400

Will the Committee on Capital Markets Regulation--which boasts an impressive roster of luminaries--be able to do anything about Sarbox? It's too early to tell, but the fact that Henry Paulson supports the group is a sign that the committee should not be taken lightly. The committee has undertaken a study to explore the competitiveness of U.S. companies in light of the law. It will issue a report by the end of November with a focus on Section 404. The director of the group is Harvard law professor Hal Scott. This is yet another sign of Corporate America fighting the law. It suggests that some tinkering to the law will be forthcoming, which means you'll have that much more to keep up with. The proposals will be interesting; the issue is whether they will offer changes that retain the bite of 404 or will they water the section down thoroughly. At this point, the debate will likely turn on details.

For more on the committee:
- Here's an AP article
- Here's an article from The Economist
For more on Paulson:
- Here's an article from The Times

ALSO NOTED: The number of companies restating results surges; Paulson criticizes Sarbox

Mon, 07 Aug 2006 20:01:38 -0400

> New Treasury Secretary Henry Paulson, without naming the law by name, has hinted that he stands ready to support reform of Sarbanes-Oxley. He suggested that it may be hurting American competitiveness. Article

> University of Pittsburgh Medical Center has become the first not-for-profit hospital system to comply fully with the strict reporting and internal control requirements of the Sarbanes-Oxley Act. Article

> Commentary: Options scandal should make people proud of Sarbox. Article

> The number of companies restating results has surged to levels after the government enacted Sarbanes-Oxley. Article (This follows June guidance from the SEC on options grant dates. Article)

> SEC names deputy chief accountant. Article

And Finally... A bit of humor on Sarbox's fourth birthday. Article