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SARBOX Well that didn’t Work Did It?

Mel Brooks starred in a classic scene in Blazing Saddles. INterrupted by Harvey Korman during a tryst with a young lady, he declres, Gentlemen, We Have to Protect Our Phoney Baloney Jobs!  Come to thknk of it perhaps that is What Tsy Secy Paulson told Congress about the bailout….

That pretty well sums up all the good the Sarbanes Oxley Acto SARBOX did to rpevent

Bear Stearns

Lehman

Fannie Freddie

Merril, Morgan

And I have yet to hear anything about the outside auditors for all these firms, have you?  Do the external auditors have any liability? Waht about those fancy audit committees that SARBOX created at the firms?

I just wondered…

DLE

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One response to “SARBOX Well that didn’t Work Did It?”

  1. April Y Avatar
    April Y

    I find it really interesting that you would mention this, because I was wondering the same thing. There has been no mention on anyone noticing discrepancies or that a large portion of their “assets” should not probably be considered as such. A lot of people want to blame the homeowners for defaulting on their mortgage, but what about the people that allowed them to get the mortgage in the first place. The underwriting guidelines had become so lax, that darn near anybody who wanted a house could get one, which is wrong no matter who they are. But in their grade mortgage lenders made these loans, no caring because they knew they had plans to sell off the loan anyway. I think this amount of risk should have been better analyzed by the outside auditors and at some point, someone should have questioned exactly how long a company would be able to continue to do business like that.

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