SOXholm Syndrome

May 25, 2006

The CEO of Deloitte & Touche is an apologist for the Sarbanes-Oxley train wreck. Maybe Stockholm Syndrome, or maybe fat cats like D&T got no fee income from the start-ups that fueled the US economy so don’t miss them all moving to London.

WSJ ($):

A Small Business Advisory Committee to the SEC recommended earlier this year that a majority of all public companies be exempted from at least a portion of these requirements, acting on a concern that the cost fell disproportionately on smaller issuers.

The SEC has opted against such exemptions… I believe that the SEC and PCAOB acted wisely, shifting the debate to a discussion of how to make the law work effectively for all companies and their investors.

The only debate should be about the caliber of bullet to put through SOX’s ugly head.


There Go The Grandkids

May 25, 2006

The Supreme Court has held the lead in damaging the society that pays it. But now their Brit equivalent has surged ahead, making marriage unacceptably risky for wealth-creators.

Jane Austen famously wrote:

It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife.

Not any more:

In the most important judgment on divorce for more than 20 years the law lords ruled that women who sacrifice careers to bring up children and look after the home should be compensated and may claim a share of their husband’s future income.

…they said that (a woman of 36) could keep the £5 million that she was awarded from the £17.5 million fortune of her husband…

That was:

after a childless marriage that lasted two years and nine months)…

This breaks new ground:

Family lawyers said that wealthy young men and women would be better off not marrying at all after Britain’s highest court ruled that a wife may be entitled to half the assets created during even a short marriage.

The husband’s lawyer said:

“My advice is: 1, don’t marry; 2, if you do make sure your other half is as wealthy as you are and 3, do a prenuptial agreement and keep your fingers crossed.”

Apparently Brit pre-nups can be fairly easily cracked.

The problem isn’t restricted to the rich – ambitious young people plan to make money, and if a brief and failed marriage will deplete their assets, they’ll stay single & childless.

Who do those law lords expect will pay the taxes that fund their fat pensions?