Apparently one of the sponsors of the Sarabanes-Oxley corporate governance law has realized it was a bad idea (via Professor Bainbridge). Just a wee bit late, me thinks. We have had some discussions here lately about whether people learn from past mistakes. Clearly Congress doesn’t, as I hear stories like this on a regular basis, where Congress rushes in to do something stupid because it’s time to act and then the primary sponsors / backers realize, long after the legislation is passed, “gosh, that was a dump thing to do”. Yet, no behavior modification goes on. I suppose it’s job security — after all, who else can clean up after them?
P.S. Is it wrong to hope they don’t fix this too soon, as a significant chunk of the market for my product are firms targeted by Sarbanes-Oxley. Repeal wouldn’t be a killer, as there are good reasons to use it anyway, it just won’t be as urgent.