Through TheFly's Eyes: Sarbanes Oxley
from Theflyonthewall.com













Thank You SARBOX: 23 of 25 Largest IPOs Done Outside U.S.

Stephen Schwarzman, Chairman & CEO of The Blackstone Group, while on the Charlie Rose show last night said that 23 of the 25 largest IPOs done recently have been completed outside the US. Schwarzman attributed the US's poor showing directly to Sarbanes Oxley.

This reminds this Fly of the old Ronald Reagan line: "What is the scariest thing a businessperson can hear?" "I am from the government and I am here to help you." Schwarzman said Sarbox is the primary reason for this shift to the international markets. He also said that Sarbox has been a boon for the buyout business.

One of the unique aspects of the US equity markets is that higher risk, money losing businesses can come public. In many countries, companies with losses are not permitted to get listed. Many of the best growth areas in the US during the last twenty years (cable, wireless, satellite TV) had years of huge losses before turning a profit. The US has been the high-risk, high-return market for global investors for decades. According to Schwarzman, Sarbox is misguided policy and is hurting the US's lead in financing the next generation of businesses.