It is not a Presidential year but it is still a good question to ask as the Enron legal circus
started in Houston this week. It has been over 4 years since the scandal broke.
Read this WSJ 9 chart analysis and commentary on one of Enron's complex transactions - Chewco.
Have our watchdogs – external auditors and the SEC – retooled themselves to better deal with Chewcos? If SOX had been in place 4 years ago would Enron management have not attempted such transactions? Are we as individual and institutional investors any savvier about Chewcos - or similar risks in our portfolios?
My answers to those questions: No. No. No. We are making corporate America spend a lot of money on SOX compliance and feeling lulled by it.
My campaign bumper sticker:
Four No more years for SOX.
