The Sarbanes-Oxley Act Of 2002: Financial Institution Compliance

"The Act, which was signed by President George W. Bush and became law on July 30, 2002, represents the most sweeping legislation in the securities industry since the adoption of the Securities Act of 1933 and Securities Exchange Act of 1934 (the ?Exchange Act?). The Act is a reaction to the highly publicized alleged misdeeds by senior management of a few prominent companies. In the months since its passage, the Act has caused many public companies, large and small, to reevaluate the quality of their financial disclosures, change many of their standard operating procedures, make immediate improvements in their corporate governance practices and in some cases consider whether to go private in order to avoid incurring the additional costs of complying. Publicly-owned financial institutions and their holding companies3 have had to do the same. Financial institutions, however, may be better prepared than their counterparts in other industry groups to cope with the Act?s many mandates."

Provided by: Schiff Hardin & Waite Topic: Date Added: Jan 2003 Format: PDF

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