by Mike Masnick
Tue, Dec 23rd 2008 11:55am
It's already quite clear that Sarbanes-Oxley has done very little to actually prevent fraud of any kind, but it has been a tremendous burden, especially on smaller, innovative companies that help grow the economy and create new jobs. It's basically become a huge tax on tapping into public financial markets for growth. Michael S. Malone is now making the argument that if the incoming presidential administration is serious about creating jobs, it's time to roll back SarbOx and other accounting rules that have acted more for theatrical purposes rather than any legitimate reason. Basically, all they've done is create new reporting requirements that do little to nothing to either prevent fraud or clarify a company's actual financial position (its intended purpose). Regulators love these sorts of bogus rules because it makes it look like they've done something, when really all they've done is put up huge hurdles for actually doing anything. I'm all for radical transparency in financial info, but that's not what has been done. Instead, we've made it burdensome to actually grow a company -- and that doesn't help create jobs. It helps kill them.
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