When Harvard Professor Hal Scott put together the Committee on Capital Markets Regulation and got the support of U.S. Treasury Secretary Henry Paulson, observers thought the new group may have a better shot at coming up with workable solutions to the problems Sarbanes-Oxley has created. The group is, after all, made up of representatives not only from the business and accounting fields, but also from law and academia.
Last week, the committee released its first report, which says that the U.S. financial markets are rapidly losing their attractiveness, and that Sarbanes-Oxley is largely to blame. Compliance with the law is so costly that the U.S.'s listing premium has dropped by 50 percent since Sarbox was enacted, according to an American Enterprise Institute article that cites the report.
Apparently the AEI writer likes what he sees. After indicating that the committee's recommendations are "too complex" to detail in a single article, he says that President Bush should require Securities and Exchange Commission Chairman Christopher Cox to implement as many of the reforms as possible or risk losing his job.