More of the same, the same sound and fury, over and over again – Sarbanes Oxley was supposed to prevent such things, it didn’t. Now the Obama Administration is going to pass more financial regulations – how does that work – they don’t seem to be able to regulate much of anything, including their own credit card to be paid by us Taxpayer’s and our grand children. Amazing!
An interesting article in the Wall Street Journal entitled; “BofA [Bank of America] Admits Hiding Debt; Details come as SEC is set to unveil review of Wall Street ‘Window Dressing’,” by Michael Rapoport. In that article which you really should read to get the full-affect of the argument, it has a statement from Bank of America which said that the 10.7 Billion Dollar accounting error over a three year period was “immaterial” to the bank’s balance sheet or financial performance. Really? Ten-point-seven Billion Dollars is no big deal from a bank that is too-big-to-fail now? Amazing.
Now then, if you will recall Enron had accounting “irregularities” and Arthur Anderson’s audits didn’t find them, and when it collapsed the US Congress enacted that Sarbanes-Oxley regulatory nightmare, which was supposed to prevent such things from happening in the future? Obviously, that didn’t work; as Lehman was doing the exact same trick before their collapse we find in hindsight. And those banks which survived? Well, Goldman and B of A were not exactly completely transparent either.
Sarbanes-Oxley while it employed 10s of thousands of accountants, and raised their pay to an insane amount, it also hurt businesses at all levels due to this over burdensome regulations. And it didn’t work when it was really needed. So now, rather than enforcing the current regulations or ditching Sarbanes-Oxley the Federal Government is going to add to it – so, what does this mean to you? No meaningful recovery in the job markets, more bureaucracy, fewer loans for businesses and consumers, and more of the same down the road.
And you ask how I know this? Please, would you study your history, I am getting tired of explaining these obvious things to those who are so caught up in the mass media hysteria that they continually vote for these same politicians, which keep making the same mistakes over and over again. And as unwise as these decisions have been, it can’t be by accident, no one is that stupid, not even the US Congress or Obama Administration. This over regulation is planned, and it is an attack on free-enterprise, worse, it’s destroying our country to no avail.
There are plenty of regulations on the books already, too many, problem is they are not enforced on the culprits, who just happen to be the biggest lobbyists? Hmm? How can that be I suppose?