Sarbanes-Oxley means 'huge leak' for US capital markets

MSN reports:

The US's Sarbanes-Oxley law on corporate accounts has led to an "outsourcing of America's 100-year lead in capital formation", according to Tom Feeney, a Republican congressman who is urging changes to the law.

As foreign companies shun US stock exchanges in favour of their counterparts in London or Hong Kong, there is growing concern among bankers about whether the new law is driving capital offshore.

The law has also raised hackles in European capitals as the New York Stock Exchange and Nasdaq have expressed interest in acquiring either the London Stock Exchange or Paris-based Euronext. Among European concerns is a fear that US disclosure rules will be imposed from abroad.

Capital flows where it's most welcome.