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Former BB&T CEO John Allison on the impact of Sarbanes-Oxley and issues that aren't getting enough attention on the campaign trail
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-- -- -- Will government regulation come up and tonight's debate well it's on the minds of some business people including former BB&T CEO John Allison.
A talk -- on our earlier at the commit forum on corporate responsibility and regulation.
And I asked him what exactly he's trying to accomplish -- some of that.
This is day when I'm involved in this a debate over sarbanes -- this is the tenth anniversary of sarbanes Oxley an issue wasn't a good or bad thing.
Of course I think it was a bad thing I think it's radically need to increase -- accounting calls and it is in fact not reduce fraud risk which what it was intended to do.
What the government is gone and an altogether different direction because it -- business world is facing.
A great deal more regulation today than it did ten years ago -- -- is it impossible to reverse that.
That's a great question there has been an exponential increase in -- regulatory.
The impact on business which is clearly reduce our standard of living.
Don't we call businesses are spending.
Other intellectual capital their time and energy making government bureaucrats have been set to create jobs producing -- -- And innovating -- -- socks these horror that truly wild things are talk about the people don't realize I've been teaching at the business school Wake Forest University we have people just -- become accountants.
Well let's face it accounts don't produce much where health -- -- OK yeah and instead of the company engineers scientists or even business leaders.
We're misdirected resources into a very -- -- not effective risk management process that's generated about regulations not by the market in this case sarbanes Oxley.
And thank you so apparently forgiven my alma mater applaud that air -- -- into account Clinton's.
You very much appreciate -- right slew.
And the -- of -- -- -- in terms -- because you talk about accountants and we talk about.
Debate tonight.
What do you think is the most critical issue that in in terms of domestic policy that needs to be discussed.
That may be isn't getting enough attention on the campaign trail.
Well obviously think the focus ought to -- -- what's necessary to return our economy to -- -- normality.
And in general what's necessary is just flat let's go.
Less regulation less interference in markets.
And also well rational strategy where people can look forward and say well we know we're gonna have a rational tax and -- this and then punish.
Wealth creation.
And that we're gonna have government that has experience is under control.
And I think people need to see it is a systematic process towards a long term good -- -- -- might be willing to take some of the short term pain.
What would that hadn't really pretty and presented effectively what how much -- less regulation that prevent that that financial collapse for years -- -- Well essentially -- financial crisis was created.
About government policy we didn't we didn't have a deregulation of financial industry regulation of financial -- -- an all time how we had Brady Law sarbanes Oxley.
The patriotic act and the -- the act.
What we -- was -- regulars.
What really -- a financial crisis with a -- reserve and early 2000 trying to avoid a correction print it too much money.
Detonated Salt Lake we were more wealth that you early wealthier -- we are which calls us to over consistent.
The over consumption -- -- up and housing and a massive bubble in the housing market primarily driven by government -- Freddie Mac and Fannie Mae two government sponsored enterprises in the affordable housing -- congress not deregulation.
How much trouble has the current Federal Reserve created for the country just four years out you thank.
I think is scared.
It may work out what we're going be lucky this really reminds me of the move the sixties and seventies believe tough on inflation as long.
And people don't realize they have and how the theater -- does this massive expansion myself -- like kiwi.
Three years all these few these are simply the Federal Reserve printing money they like -- make it obscure but dollar bill as written money.
At thanks to former BB&T C John Allison M.
