CBI chief warns against Sarbox-style regulation
Richard Lambert admitted that the business lobby group underestimated the scale of the credit crunch
The CBI chief has warned the UK’s policymakers against adopting US-style
accounting regulations in the wake of the credit crises.
Speaking at a business leaders’ dinner at Cambridge’s Queens’ College,
Richard Lambert admitted that the business lobby group underestimated the scale
of the credit crunch. However he added that snap regulation must be avoided. He
said the situation called for a calm look at regulation in the financial
‘The political temptation to clean up the City must be tempered by the
experience of Sarbanes-Oxley and the knowledge that recovering markets need
help, not handicap,’ Lambert said.
The strict rules which were introduced after the collapse of Enron and
WorldCom were considered too burdensome and resulted in several companies
delisting from the US.