Revolutionary Financial Regulation
As previously hinted at here, revolutionary changes are forthcoming in financial regulation. These will be far more significant than any that have been made, including compared to those in 1933 and 1934 after the 1929 stock market crash and ensuing Great Depression.
Seven years ago, when Sarbanes-Oxley was enacted, many people declared it “sweeping legislation.” The vast majority of observers and participants said it was the most significant set of reforms since the Great Depression. Proponents thought this an affirmative good and opponents, like Larry Ribstein and Roberta Romano, found it repugnant.
I was among the minority who explained how this notion of “sweeping” was rhetorical over-statement–and how the rhetoric combined with the modest changes could actually work, which they did. Certainly compared to what is coming, Sar-Box will be the yawn I suggested it was, though Congress continues to debate, in the current negotiation, how far parts of it should go, including whether to extend its internal control requirements to smaller enterprises.
Amid the current hurly-burly, also as previously noted, we at GW are hosting a conference, next Friday, to sort through some of this. A program is here, along with details on how to register. One highlight among many: our keynote speaker is SEC Commisioner Luis Aguilar, though spots for his lunch time talk may be scarce.