The $1.4 Trillion Mistake

Now that William Donaldson has resigned as SEC Chairman, it's time to re-think the costs and benefits of the Sarbanes-Oxley Act that was endorsed by the Donaldson SEC as a way to renew investor confidence in American capitalism and improve corporate accountability. With the expected confirmation of California Representative Chris Cox as a replacement for Donaldson this summer, it is perhaps only natural to ask which of the most burdensome SOX compliance requirements -- such as the much-lamented Section 404 -- can be rolled back, or at least reinterpreted in a way that focuses attention on the true causes, not just the symptoms, of corporate governance weaknesses.

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