FOX Business News: Financial Regulation Reform
Washington, D.C., Of Counsel Michael Oxley, former Congressman, Chairman of the House Financial Services committee and co-author of the Sarbanes-Oxley Act of 2002, appeared on September 10, 2009, on FOX Business Network discussing the financial crisis that began a year ago and, moving forward, what financial regulation needs to be put in place to prevent another crisis in the future.
Asked if he believed more regulations need to be put in place—and what that regulation should consist of—Oxley said, "I like to think we need more transparency. Sarbanes-Oxley, to a large extent, was about transparency and accountability to restore investor confidence. We've had a loss of investor confidence recently because of what has happened with over-the-counter derivatives . . . one of the key areas, I think, is going to be how do we take the over-the-counter derivatives, that are essentially unregulated and opaque, and provide the kind of clearinghouse necessary so you can have price discovery and you can unlock these . . . instruments and markets. That will be an important factor in what Congress needs to do going forward to make certain this type of thing doesn't happen again."
Oxley continued: "A second area, of course, would be to have what I would call a systemic overseer. Not necessarily a systemic regulator . . . but an entity that would take a look at the economy and the financial markets at 30,000 feet and then make recommendations."
Click to watch the full interview with Michael Oxley from the FOX Business website.