The widespread pain triggered by Bernie Madoff is rife with potential for political posturing and legislative over-reaction. Sarbanes-Oxley taught us that laws passed in an emotional cauldron, while well-intentioned, frequently have significant adverse consequences. In the securities world, these consequences are disproportionately borne by smaller enterprises, public and private, and ultimately by all investors. We can't afford that.
Fraud is already fraud. Even without Sarbanes-Oxley, Enron-era corporate misdeeds were subject to adequate civil and criminal sanction. Dramatic new legislation isn't the...
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