Candidate Paul Speaks out on Sarbanes-Oxley

Lora Bentley

Presidential candidate Congressman Ron Paul (R-Texas) was one of only three members of Congress to vote against the Sarbanes-Oxley Act when it was still under consideration in 2002. This week, to commemorate the act's upcoming fifth anniversary, editors at Audit Trail asked Paul whether he had changed his mind in the past five years. The short answer: No.


In fact, Paul indicated that Sarbox reform is near the top of his agenda. He says:

Reform, or even repeal, of Sarbanes-Oxley remains one of my top priorities. As a member of the House Committee on Financial Services, I intend to continue to be an active participant in the debate over Sarbanes-Oxley and similar legislation.

Why? Paul made that clear early in the interview:

The damage inflicted on American businesses and capitol markets by Sarbanes-Oxley has strengthened my conviction that this legislation should be repealed. In 2000, nine of every 10 dollars raised by foreign companies were raised in the United States. In 2005, nine of the 10 largest offerings were not registered in the United States, and, of the largest 25 global offerings, only one took place in the United States. The number of public companies going private increased from 143 in 2001 to 245 in 2004. Sarbanes-Oxley is a, if not the, major reason companies are fleeing America's capital markets. Furthermore, according to some estimates, Sarbanes-Oxley has cost the very investors the law claims to protect at least $1.4 trillion.

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Jul 21, 2007 10:41 AM HerculesZolla HerculesZolla  says:
Ron Paul right about SOX. It cost large companies millions upon million to comply with. And there was little or no guidance from the government after it went into effect. Even big firms like KPMG, PWC and others were running around clueless about how to deal with it for years. So it's a really expensive pain the butt for big companies. But for smaller operations it's a nightmare that's just not affordable. Thus driving down the value of those companies. And making them vulnerable to leverage buyouts. SOX will eventually destroy fair competition in the market. There has to be a better way. SOX had good intentions but it's too wide in scope. It's a beast. Reply
Jul 21, 2007 4:19 PM TOM TOM  says:
Ron Paul is our country's leading self-taught and extremely well read thinker/communicator on sound money and sound economic policy. Thank God for a voice of reason and sanity!RonPaul2008 Reply
Jul 23, 2007 8:18 AM Restore The Republic! Restore The Republic!  says:
The USA Drives Away Businesses with endless legislation and taxation, no wonder corporations are 'pulling up the stakes' and moving to India and China.Free Markets punish bad business, and the USA has chosen to create a bad environment for business.Ron Paul's Free Market program increases profits and reduces costs for every business in the USA!RESTORE THE REPUBLIC - VOTE RON PAUL! Reply
Jul 26, 2007 9:17 AM Ivan Pena Ivan Pena  says:
Dr. Paul, you have done it again! Reply
Jul 26, 2007 11:13 AM Chris Chris  says:
As I read Congressman Ron Paul's statement, I'm reminded of the old saying, "Out of sight, out of mind" -how quickly we forget. Between 2000 and 2003 there was a litany of financial scandals Global Crossing, WorldCom, Xerox, Vivendi, Adelphia Communications, AOL Time Warner, Bristol-Myers Squibb, CMS Energy, Duke Energy, Dynegy, Halliburton, Tyco and on and on. In the words of Warren Buffett, "its only when the tide goes out that we can see whos been swimming without their costumes on". Let us not forget the collapse of Eron, one of the countrys largest companies, resulted in the loss of thousands of jobs and millions of dollars. There is no finite cost to the fallout from the Enron scandal and collapse. The costs continue as former employees try to rebuild their lives and their retirement accounts.The failure of Author Anderson to maintain their independence and advocate for the correct accounting treatment has changed the auditing profession forever. The trust of the investment community and the American worker was violated. So Congressman, it was the debacle of the company scandals and collapses that inflicted damage on American businesses and capitol markets not the transparency created by the regulation. History may very well remember the Sarbanes-Oxley act as the savior of our "Free - Market Economy". Reply
Jul 30, 2007 10:54 AM Jackie Jackie  says:
Here are some things Ron Paul has written:http://www.house.gov/paul/congrec/co...5/cr041405.htmhttp://www.approva.net/audittrail/20...5-years-later/http://www.house.gov/paul/congrec/co...2/cr020402.htmand here is a great article, send to all you know. Please, we have a chance to get rid of this if Ron Paul gets elected. Ron Paul Saviour to business.http://www.lewrockwell.com/orig8/haman2.html Reply

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