At least I'm not the only one who thinks there are problems with Sarbanes-Oxley: Former Federal Reserve head riffs on Sarbanes-Oxley
However, he described SOX Section 404 as a "nightmare" and extremely costly. That section requires a company's auditor to attest to the effectiveness of internal controls implemented to protect financial reporting systems and processes.
"What can you expect when you get virtual unanimity in both houses [of government]?" Greenspan asked. "Any bill that gets that can't be good."
He believes that the vast majority of the members of the Senate and the House of Representatives failed to actually read the bill, which passed largely uncontested in 2002.
Greenspan is hopeful that changes to Section 404 are likely, praising the efforts of Democrats Chuck Schumer and Barney Frank seeking a re-evaluation of the legislation. Schumer, New York's senior U.S. senator, was particularly concerned about New York City's status as a financial center. "He was seeing IPOs [initial public offerings] going to London," Greenspan said.
Considering it's Schumer and Frank, I'll be much less hopeful than Greenspan.
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