Senator Dodd prepares to take over the leadership of the Senate Banking Committee and is satisfied with Sarbanes-Oxley (SOX)
From NY Times 22-Nov-06, Senator Christopher J. Dodd said he was satisfied with Sarbanes-Oxley, which he played a significant role in drafting. He said he had not yet reached the same conclusions as the Bush administration and some Democrats that the law, combined with excessive litigation, had driven companies to issue stock in overseas markets instead of on Wall Street. “I’m open to listening,” he said. “But if I get a sense that these new proposals are going to weaken transparency and stability and the competence in the system, then I’m going to be resistant.”
Another Sen. Dodd comment: “Sarbanes-Oxley had gone far to promote better corporate governance and transparency. I’ve always felt that the most important thing you have to worry about is investor confidence. I have no obligation whatsoever to guarantee that you’re going to make sure that you are going to make money on your investment. But I feel a very strong obligation that you didn’t lose it because the system broke down. That to me is going to be very important when I listen to these arguments.”
This author is in agreement with the Senator comments as I believe both SEC & PCAOB can revise their Rules and Guidance to influence companies and auditors behavior change towards the spirit of the SOX law. From a company’s Operations point of view, who would not want better transparency and stability and the competence in the system.
