It often seems that foes of Sarbanes-Oxley far outnumber its friends.
But the controversial regulation -- which is often panned by businesses as a major financial burden -- apparently has friends in Congress. The U.S. Senate on April 24 rejected an amendment that would have made compliance with section 404 optional for companies with a total market value of less than $700 million.
Not only that, but it passed, by a vote of 97-0, a symbolic statement that signaled confidence in the Securities and Exchange Commission's ongoing efforts to make section 404 more friendly to business. The SEC is reportedly close to issuing guidance on the matter.
Chris Dodd (D-Conn.), chairman of the Senate Banking Committee, said it "would be inappropriate for (Congress) to jump in and draw a conclusion as to what the SEC ought to be doing."
Jim DeMint (R-S.C.), sponsor of the rejected amendment, argued that the amendment would "shake up the SEC," which he said is taking too long to modify section 404.