I have been wondering when that little piece of legislation called Sarbanes-Oxley was going to be enforced.
SOX legislation is really geared toward accounting practices. However, one if its regulatory controls is that of highlighting and clearly explaining the way a firm makes and approves decisions.
Somewhere in these firms are risk analyses that point to the probability of Alt-A and subprime housing loans imploding. That means a Risk Manager and his/her Controller either willfully ignored the risk or ignorantly trusted the analysts.
Either way, someone should pay for their stupid decisions and mistakes. Ignorance is not a defense against REALITY.
SOX was created for that specific purpose of hold responsible the upper management and officers of a firm that breaks the law. But, SOX does not allow the prosecution of REALLY REALLY bad decisions which is different from malicious intent.
That only provides more weight to letting banks and corporations fail. At the very least, these loan officers, managers, executives, and irresponsible home owners should reap the full result of their choices. Ignoring reality is not the best course of action for anyone.
-- Lache, the Feral Capitalist
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