Michael Nelson
University of Phoenix
LAW/421
Timothy Bodily
Week Five Personal
The article I reviewed was called The Sarbanes-Oxley Act: A Cost-Benefit Analysis Using the U.S. Banking Industry from authors from the Journal of Applied Business. The article discussed the detrimental effect the SOX Act has had on the American banking system. Reports collected by the Federal Reserve show that returns on assets (ROA) and returns on equity (ROE) for nonregistered (SEC reporting) banks were substantially better than the banks which were registered. According to the Harvard Law review of 2003 (Harvard Law Review 2003), over-regulation can become counterproductive. “Companies can become routinized in regulatory