Did Sarbanes-Oxley miss a trick during subprime?

When something is complex to understand or unclear, there is a duty of responsibility to err on the side of conservatism and raise a red flag During the recent subprime crisis in the highly interconnected banking and financial services in the US, banks did not seem to know one another’s appetite for risk. They (and other investors) also do not seem to have been able to rely on auditors and rating agencies of... [read full story]