Spitzer Switches on Sarbox Reform

Lora Bentley

Forgive us for being predictable, but does anyone else find it odd that New York Gov. Eliot Spitzer was on hand to back Mayor Bloomberg and U.S. Sen. Charles Schumer, D-N.Y., as they unveiled their McKinsey report?

For those who've been out of the loop, the bipartisan duo of Bloomberg and Schumer has been calling for a rollback of Sarbanes-Oxley for some time now. To that end, the city commissioned McKinsey & Company to research the effect of Sarbanes-Oxley on its economy. The just-released report found New York City stands to lose up to 60,000 jobs in the next five years, the cash that Wall Street generates (approximately $25 billion), and its status as the world's financial capital if changes aren't made to Sarbanes-Oxley and securities regulations. Fast.

Spitzer made a name for himself as the state's attorney general by cracking down on Wall Street criminals. While he was campaigning for the office he now holds, he stood squarely against Sarbox critics and argued that the embattled corporate reform law was doing just exactly what Congress intended, and it didn't need to go anywhere.

Now, all of a sudden, he decides reform is a good thing? Maybe he realized arguing with his transition team and prominent politicians wasn't the best idea, or maybe he simply changed his mind. Either way, he got our attention.

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