In case you missed SEC chairman Christopher Cox's chat on NPR this morning (you can listen to it here), here are a few highlights that may come as something of a surprise.
Cox has been both a tacit, and direct, supporter of the various reform committees out there whose basic claim is that regulation is costing America its lead in the capital markets.
Yet, when asked whether Sarbanes-Oxley had been worth the cost, Cox did not hedge. "Absolutely, it was worth the cost," he told NPR.
But, asked Morning Edition, isn't Sarbanes-Oxley blamed for forcing companies out of the U.S. to list in overseas markets?
"Well," replied Cox, " Sarbanes-Oxley is one piece of a much larger puzzle. When one looks at the global capital markets, there is much more competition now than there ever has been before. And so, the United States has to constantly sharpen our competitive edge."
That's a nuanced point, but more consistent with the seemingly ubiquitous idea that perhaps our regulatory environment harms our competitiveness. But in case there was any doubt that Cox, the original author of the Public Securities Litigation Reform Act, was delivering a nuanced message, there was this response to the question of whether Sarbox had decreased instances of fraud:
"There are many ways to measure that," he said. "One way is the number of private securities class action suits that are brought to rectify instances of fraud. There is no government restraint or control on those actions. They are freely filed and filed when people are aggrieved. Those suits now are way down compared to just a few years ago, I’d say that is good news."
Finally, in answer to a question about whether companies have come around and told Cox that they now see the benefits of Sarbanes-Oxley: "Yes, that has happened repeatedly. There's never been a question about benefits, only about costs. And what has happened is the costs have come down."
There has never been a question about the benefits?
I've said it before and I'll say it again. Chris Cox is running for president.
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