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I used to work in compliance and the number of regulations that are punitive punishments for bad things that actually happened is just astounding. SOX complian
by freehunter 7y ago
I used to work in compliance and the number of regulations that are punitive punishments for bad things that actually happened is just astounding.
SOX compliance is arduous but it only exists (and is as strict as it is) because some banks decided to destroy the global economy just to make a bit of money and couldn't understand why this was a bad thing.
- wheelerwj 7y ago> for bad things that actually happened is just astounding. you are not kidding. "You mean we have to monitor for this because someone ACTUALLY tried doing that before...?"
- chrisco255 7y agoSure, bad things happen. But there's a trade-off between regulatory burden and economic vibrancy and adaptability. We all know that taxi regulations sort of existed because a lot of tourists would get taken advantage of. But then, the taxi companies and politicians exploited it to promote local monopolies and enforced it with limited edition, expensive taxi medallions that prevented people from starting up legitimate cab companies to compete with the incumbents. That sort of thing happens all the time and that opportunity cost is not often talked about.
- peacetreefrog 7y agoAgreed. Though it's tough to square the fact that bad things happen sometimes with desire to do something. The Onion actually had a good video on this a few years ago: https://politics.theonion.com/truck-accident-that-killed-rafters-in-canyon-sparks-tru-1819594960 https://politics.theonion.com/truck-accident-that-killed-raf...
- wbl 7y agoSOX predates the GFC by a decade.
- rgbrenner 7y agoSox was passed in response to Enron. While that may have been a big failure, it had no effect on the wider economy. In fact Enrons scandal only came out after the 2001 recession ended... the economy grew during and after Enron’s failure.
- phs318u 7y agoShould the government have waited for another half a dozen “Enrons” before acting? The whole point of regulation is to avoid such occurrences not as an “I told you so”
- MiscIdeaMaker99 7y agoOh, there were. Tyco International Adelphia Peregrine Systems WorldCom (which was a big one) And there were many more.
- yardie 7y agoAnd how much time lapsed between identifying the problem, notification, committee meetings, proposal, final draft, voting, and enforcement?
- deleted 7y ago[deleted]
- adamc 7y agoDestroyed the pensions of many people, though.
- c3534l 7y agoSOX exists because of Enron / Arthur Anderson / Tyco / half a dozen others, not banks.
- heartbreak 7y agoOP was thinking of Dodd Frank.
- GCA10 7y agoRight sentiment; here's an editing tweak that lets you make the point more precisely: SOX compliance is arduous but it only exists (and is as strict as it is) because some company built a $60 billion market cap in 2000 with financial-statement mischief that concealed a bankruptcy in the making.