And they've got friends at the top. Apparently the President is planning to "fine tune" (read: roll back) SarBox.

Meanwhile SEC Chair Chris Cox seems to feel SarBox has gone a long way towards creating an environment where corporations are coming clean voluntarily, noting that (Kobi Alexander notwithstanding) the SEC has seen unprecedented levels of cooperation in the recent stock option backdating scandal. Republican appointee, Cox, has even incurred the wrath of NRO which as you might image takes a hyperbolic dim view of Sarbanes Oxley.

If you care to voice your opinion, the SEC will be taking comments in December. But given that the nation's top securities regulator is itself under investigation for playing favorites when it comes to enforcement, look for them to remain aggressive well into the new year.

-- MDT

Labels: Morgan Stanley, Pequot Capital