Subprime issues dismiss compliance issues with Sarbanes-Oxley.

Implications: In light of the subprime issues, any previous possibility of deregulating Sarbanes-Oxley has gone by the way side. Even the possibility of loosening the knot on smaller companies compliance has taken a back seat.

Analysis: What seems to be some possible questionable management of subprime related valuations has turned many away from their crusade to relax Sarbanes-Oxley compliance. Corporate governance is back on the rise as is all aspects of regulation and compliance.  Banks, investors, accountants, lawyers and all related financial advisors are  realizing that with the recent subprime problems they would just be preaching to the choir to advocate less restrictive alternatives.  While many had essentially argued that the cost to comply far out weighted the benefits there cry will for at least a while fall on deaf ears! The more likely outcome of all of this may be strict compliance as the consequences of the subprime problem will be far reaching. 
http://www.theracetothebottom.org/sarbanes-oxley/
There is an old adage, be careful what you wish for, especially when your own house is not in order.  One wonders whether Congress will see any requests for quite some time to relax Sarbanes-Oxley. For those who missed it there was a great presentation recently on these issues.  http://www.mindshift.com/libn