Tuesday, May 17, 2005
Greenspan lauds Sarbanes-Oxley
Countering critics of the Sarbanes-Oxley Act, Federal Reserve Chairman Alan Greenspan on Sunday praised the controversial measure as an effective response to corporate fraud.
"I am surprised that the Sarbanes-Oxley Act, so rapidly developed and enacted, has functioned as well as it has," said Greenspan, in prepared remarks delivered at the University of Pennsylvania's Wharton business school commencement.
Passed swiftly by Congress in 2002 in the wake of the Enron and WorldCom scandals, Sarbanes-Oxley requires companies to vouch for accounting controls and disclose weaknesses to shareholders. Some companies complain about a big increases in what they view as unproductive auditing expenses.
Business lobbyists are pushing to amend the rules. Some officials have been conjecturing that Sarbanes-Oxley may be making executives too cautious, hindering business expansion and job growth.
posted by Brian Moran @ 11:28 AM