Professor Bainbridge...on law, politics, religion, culture & food

SOX reforms: Merely Cosmetic

My latest column for the Examiner opines:

After the Securities and Exchange Commission’s latest public meeting, the media widely reported that the commission was preparing significant regulatory relief for the smaller public corporations on whi Sarbanes-Oxley imposes significant costs.

Columnist Phil Mattera complained that the SEC will “soften one of the key regulations enacted by Congress to prevent corporate fraud.” A U.K. financial reporter said “small U.S. companies received an early Christmas present from the SEC,” while The Associated Press likewise called it one of several “early Christmas gifts for corporate America.” On close examination, however, the media attention is much ado about little, because the SEC changes turn out to be mostly cosmetic.