Real Change, by Rep. Newt Gingrich (R, GA): on Corporations

Newt Gingrich: 2002 Sarbanes-Oxley Act drives IPOs out of the US

The 2002 Sarbanes-Oxley Act, which added massive new reams of accounting red tape for businesses, has driven IPOs out of the US. Furthermore, the legislation is leading public companies to delist from the stock market in order to avoid red tape (and potential criminal penalties). The Sarbanes-Oxley Act effectively drives businesses to be LESS accountable than they were before and has done vastly more damage to the American economy than the corporate accounting scandals it was supposed to reform. It has had a substantial effect on New York as a financial center and has been a big asset for London. It is a wound inflicted by Congress on the American economy.