Friday, June 16, 2006
Blackstone boss bashes Sarbanes-Oxley Act
(Reuters) - The U.S. law aimed at tightening corporate governance rules is a "terrible" piece of legislation and needs to be fixed, Blackstone Group's [BG.UL] Chief Executive Stephen Schwarzman said on Thursday.
The law, known as the Sarbanes-Oxley Act of 2002, has come under fire before from executives who say it burdens companies with hefty compliance costs.
But the law is rarely criticized by buyout executives such as Schwarzman, who benefit from companies going private in response to the Act's requirements.
"It's a terrible thing for the U.S.," Schwarzman said, speaking at a mergers and acquisitions conference on Thursday hosted by media group The Deal and the International Bar Association. Schwarzman acknowledged his firm and industry benefit from Sarbanes-Oxley.
posted by Brian Moran @ 8:56 AM