U.S. Treasury Secretary Henry Paulson said he is considering recommending changes to the 2002 Sarbanes-Oxley corporate governance law because its restrictions have overwhelmed some American companies.
While the ``net result'' of stricter reporting standards for executives has been positive, Sarbanes-Oxley has also contributed to ``an atmosphere that has made it more burdensome for companies to operate,'' Paulson said in an interview today from Washington.
``We're going to need to look at how we can address some of these issues,'' Paulson said. ``This is something we're giving a lot of thought to.''
Paulson's comments come as business groups press the Bush administration to loosen the Sarbanes-Oxley restrictions. The U.S. Chamber of Commerce and other groups say the law stifles innovation and puts corporate officials, who must certify the accuracy of their financial results, at risk of prison terms.
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