More Evidence: Sarbanes-Oxley is Self-Inflcited Wound

Over the weekend the FT (sub req) ran an editorial bragging about how London has regained pre-eminence as an international financial center. Stephen Fidler recounts the various reasons for London's resurgence, and top of the list...Sarbanes-Oxley. Here's the money quote:

"London's thank you list could start with Messrs. Sarbanes and Oxley and the US Congress. The onerous 2002 legislation...has placed a huge competitive burden on the New York Stock Exchange and Nasdaq, compared with the LSE."

And Fidler throws in some numbers:

"Figures from Dealogic show US exchanges once wiped the floor with London. Foreign initial public offerings in the US in 1999 and 2000 exceeded $80bn, ten times the amount raised through London. Fast forward to to 2005 and IPOs through London have raised $10.3bn, compared with $6bn for the US."

I'm going to say it for the hundredth time: Sarbanes-Oxley must be repealed.