Former Federal Reserve Chairman Alan Greenspan "raised eyebrows with several unusually frank remarks in an hourlong
discussion in front of 800 members of the Mass. Technology Leadership
Greenie told the audience that "Sarbanes-Oxley corporate governance rules enacted in 2002 had become a “nightmare” and should be scrapped as soon as possible." The former Fed head said SarbOx "discouraged risk-taking and were driving foreign companies to shun the New York Stock Exchange for the lighter rules in London."
That is a major reversal; Greenspan had previously supported the Sarbox.
Jim Bianco was none too impressed with the former Fed chief, noting:
"Anything else, Dr. Greenspan, you would like to change your opinion
on? Maybe the productivity miracle? The fallacy of using corporate visibility as
a forecasting tool? The quit rate? The world awaits your next confession at
-Jim Bianco of Bianco Research
Monday, September 25, 2006 – Updated: 11:41 PM EST
Et Tu, Greenspan?
September 27, 2006 9:17 a.m.
Category: Federal Reserve