May 19, 2009
Sarbanes Oxley and the Constitution
The Supreme Court will take a case on the constitutionality of the 2002 Sarbanes Oxley Act. The case features the auditor oversight mechanism put into the act, the PCAOB or Public Company Accounting Oversight Baord The President does not pick the board members (the SEC does). It is a technical point, since the President picks the SEC members and could fire them it they do not put PCAOB people in play the President wants. The harm in the Act is in other sections, section 404 for example, among others, that were hastily passed, very costly and failed to do anything with the real problems in the market -- the ratings of subprime securities by ratings agencies, for example.
May 19, 2009 | Permalink
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