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Source link: http://archive.mises.org/6481/michael-oxley-knew-sarbanes-oxley-could-spell-trouble/

Michael Oxley Knew Sarbanes-Oxley “could spell trouble”

April 6, 2007 by

Bob Greifeld, the President and CEO of Nasdaq, was once a great critic of Sarbanes-Oxley (SOX), citing the anti-competitive drag that SOX helped to foist upon his industry. How charming it is, then, to see that Nasdaq has recently brought Michael Oxley – one of the co-founders of SOX – on board as a Vice Chairman at the exchange. Oxley received much glory and worship for his groundbreaking toasting of American business, and following his run in Washington, he was hired on by a big Washington law firm (surprise, surprise). Now he will be moonlighting as he joins Greifeld at Nasdaq where his job will not be to lobby, but to “work to make the culture of Washington more transparent to clients.” I suppose there’s supposed to be a distinction between the two job descriptions. Note that currently Greifeld and Oxley “said they supported the principles of the law but said aspects of how it is implemented could be refined.”

The International Herald Tribune recently ran an interview with our hero Michael Oxley. Mr. Oxley, who was a rather undistinguished member of congress before his wave of regulatory hellfire, said that given another chance he would write the law differently. He also admitted that SOX 404 (one of the most burdensome aspects of the Act that focuses on the operating effectiveness of internal controls) was something he knew could “spell trouble” in the long haul. But his excuse is that “Rome was burning” so someone had to be expedient in raising the level of confidence of the collective public.

{ 3 comments }

Brian Macker April 6, 2007 at 5:21 pm

Rome was burning so someone had to throw gas on the fire.

AJ April 6, 2007 at 6:08 pm

Some people lost a lot of money so more people should lose even more money.

Bill Ott April 9, 2007 at 2:17 pm

This lack of confidence was completely imaginary. The markets were not dropping because of Enron or World Com, heck their competitors were revelling in the fact that their competitors were wiped out of existence.

What we had was not a lack of confidence but a lack of control. So the state in its wisdom used these stupid events (Just like it had on Sept 11) to get the ignorant media to convice the citizenry that these regulations were actually a good idea.

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