It’s hard to find the appropriate comment for this… I can only imagine that because Sarbanes-Oxley has done such a bang up job of making corporate balance sheets more transparent and reliable that Congress has determined the solution is more Sarbanes-Oxley.
The new regulations will be introduced as a direct result of the current crisis in the financial markets, and as their scope becomes clearer they will have a huge effect on data center activities, said Chris McClean, an analyst at Forrester Research. “I reckon the impact of these new regulations has the potential to be much, much bigger than Sarbanes-Oxley,” says McLean. “The push for new regulation will be enormous. When you look at the amount of people affected by Enron and WorldCom, it’s small compared to those affected by the current financial crisis. IT will have to be involved in a big way.”
There is one constant in the Federal government, their lust for oversight knows no bounds and when presented with an opportunity to not let a good crisis go to waste, they will milk it for every possible opportunity to create new laws irrespective of what actually is at the root of the crisis in the first place. I am not suggesting that there are no gaps in the current regulatory scheme, but what I am saying is that we owe it everyone involved to understand first how government policies, regulatory agency failures, and outright fraud stacked up before we go creating new laws that increase the cost of doing business.
Hat tip to Walter Olson who writes the excellent blog OverLawyered. I really recommend you read his blog to stay current on another regulatory disaster, CPSIA.