TCS Daily - Is This What Is Meant By 'Investor Protection'?
Since SOX became law, our economy and capital markets have suffered from higher compliance costs in several ways:
* The number of companies going private (so-called "going dark") has increased dramatically, with many firms citing SOX compliance costs as a principal reason for choosing to do so
* A growing number of firms choosing to rely on retained earnings or private equity rather than raising money by going public via an IPO
* Pre-SOX, 9 out of the ten largest IPOs had a US component; in the last year, 9 out of the 10 largest were entirely foreign
* Fewer acquisitions and ADR offerings by foreign issuers
The bottom line? SOX is costing our economy the proverbial bundle and the SEC's response is little more than whistling past the graveyard.
More good news. Bleh. I'm not going to call for a rope but will only note that if you whip a horse while cutting off it's air don't be surprised when your wagon doesn't get very far.
