Chapter 14. Regaining Investor Confidence

It is important that long-term solutions to the corporate governance problems are implemented. The governance changes proposed or enacted into law are detailed in the previous two chapters. Many of the solutions that have been implemented are not necessarily going to be effective over the long term. For example, the SEC has been given significantly increased funding to expand its investigations. But prior to the summer of 2002, its funding was totally inadequate to monitor firms and protect investors. The intense focus on these issues will start to wane over time. As the public shifts its focus, so will politicians. Five, ten, or twenty years from now, elected officials will be looking to reduce the size ...

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