Sarbanes-Oxley may never work its way into the hearts and minds of Wall Street. The regulation came under attack yet again today (see earlier post on Mayor Michael Bloomberg and NYC's financial services) as a reason New York City and the U.S. are losing their financial edge to cities like London. The complaint is the 2002 law is too much and too costly to obey. And that's driving IPOs, hedge funds and the like...
It's almost the end of the financial world as we know it-- in New York City. At least that's according to New York Mayor Michael Bloomberg (R) and Sen. Chuck Schumer (D-NY). Both men say NYC--and the U.S. for that matter-- are losing their competitive edge as leaders in financial dealings. Today--the politicos released a study done by the mayor's office and consultant group McKinsey that apparently proves the point.
Many in the U.S. business community are concerned over regulations that they think are hurting them in key areas--like IPOs. According to the Committee on Capital Markets Regulation--the U.S. raised only 5% of the value of global IPOs last year. That's compared to 50% in 2000.
It's true the blue-chip Dow Industrials set the most watched records in 2006, but, once again, it was actually small caps that reigned supreme. For the 8th consecutive year, the Russell 2000 posted better returns than the S&P despite predictions the rally for the little guys would come to an end. Will the small caps winning streak continue in '07?
In an exclusive interview with CNBC, SEC Chairman Christopher Cox said the agency is in its best shape ever to oversee a variety of regulatory issues simultaneously, whether it's options backdating or keeping a watchful eye on the derivatives market.
Regulators voted on a proposal that would raise the hurdle investors must meet in order to enter the fast-growing world of hedge funds.