Skip to main content

Sarbanes-Oxley reform

A July 31 Financial Times article focuses on one politician's drive to reform the Sarbanes-Oxley legislation. Tom Feeney, a congressman in Washington D.C., says that certain provisions of SOX impose significant time and cost burdens on companies forced to comply.

This, he has learned, is hampering our ability to attract public corporations to our capital markets. From FT's article, "Advocate of SOX reform points to capital markets leak":

Mr Feeney's beef includes the usual criticisms of SOX: that its most burdensome provisions - enshrined in section 404 - are adding unnecessarily to companies' auditing costs and that it is tying up too much executive time.

But he warns it has also led to an "outsourcing of America's 100-year lead in capital formation" as companies shun US stock markets and seek listings in London and Hong Kong instead.

"Last year, while I was on a listening tour of bankers associations and the Chicago [derivatives] exchanges, the evidence was starting to come out in dribs and drabs. Now there's a sort of fire hydrant of evidence that we have a huge leak in our capital markets," the Republican congressman says.

He casts himself in the role of "an American economic Paul Revere" with his warnings. "The British are coming," he says, using the words of the hero of the war of independence. "And by the way, so is Luxembourg coming, and Hong Kong, Shanghai and a dozen other markets. I think it has already started being bad for America."

For an earlier look at the rise of foreign listings and stirrings against SOX legislation, please see, "Exchange Fever".

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…