At the same time financial advisory firm Seibel and Associates is arguing that the newest Financial Standards Accounting Board ruling and Sarbanes-Oxley aren't strict enough, a new McKinsey report says New York City and the U.S. could lose their status as the world's financial capital if Sarbanes-Oxley and the securities regulations are not revised and relaxed immediately.
According to this morning's New York Post, the report says NYC stands to lose 60,000 jobs in the next five years, not to mention the $25 billion in cash that Wall Street generates, if regulations are not revamped. Along with combating corporate fraud, the Act has also quadrupled public company accounting costs and sent IPOs to markets in Europe and Asia, the story says.
Mayor Michael Bloomberg and New York Sen. Charles Schumer, who have been leading efforts to see Sarbanes-Oxley revised, were on hand for the report's release. Among its recommendations: establishing a new financial services oversight panel in Congress, adopting "concise" guidelines for Sarbanes-Oxley implementation, and revising accounting standards and securities regulations in the U.S. so that they're more in line with their counterparts in Europe and Asia.
Seibel and Associates says accounting rules and reporting standards will be in place for a long time to come -- especially because shareholders are increasingly demanding more transparency from public companies. But if Schumer and other Sarbanes-Oxley critics have their way, tomorrow's accounting rules will be strikingly different from those under which companies operate today.