Later On

A blog written for those whose interests more or less match mine.

Obama Administration helps House Democrat gut post-Enron reforms

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The Obama Administration includes too many Republicans and Conservative (business-oriented) Democrats. Rahm Emanuel I am particularly suspicious of: too many betrayals. Shahien Nasiripour writes at Huffington Post:

With the White House’s blessing, a House panel voted Tuesday to water down a key post-Enron measure designed to protect investors.

In a voice vote, members of the House Financial Services Committee agreed to permanently exempt from a provision of the 2002 Sarbanes-Oxley Act all publicly traded companies with market values less than $75 million — which amounts to more than half of all public companies.

The provision mandates that firms obtain audits of their internal controls. Companies say it costs too much. Though these firms have received annual deferrals from this requirement since its 2004 enactment — some think the fiercely anti-regulatory Bush administration had something to do with this — SEC Chairman Mary Schapiro said last month that the deferrals had ended, and that the firms would be expected to comply by 2010.

So Reps. Carolyn Maloney (D-N.Y.), John Adler (D-N.J.) and Scott Garrett (R-N.J.) went to work. All three offered amendments to delay or prevent its planned implementation. Adler’s amendment from last week went the furthest, proposing to exempt four out of five publicly traded companies.

Schapiro sent committee member Paul Kanjorski, a Pennsylvania Democrat, a letter expressing concern and the anti-investor amendments were beaten back last week after Kanjorski and committee chairman Barney Frank (D-Mass.) expressed disapproval.

Then the White House got involved.

On Tuesday, Adler offered a new amendment to permanently exempt smaller firms. Though it passed via voice vote, Frank requested a final roll call vote which is scheduled for Wednesday.

Per the Wall Street Journal: …

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Written by LeisureGuy

5 November 2009 at 10:51 am

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