Only problem is enforcement

Author: | Published: 1 Jul 2008

Simon Crompton

Professor Coffee (above) adresses the audience and, below, the other panel speakers: Kirk Davenport, Latham & Watkins; Rob Evans, Sherman & Sterling; Greg Rodgers, Latham & Watkins; Jim Tanenbaum, Morrison & Foerster; Martin Goldberg, Lehman Brothers; Mark Welshimer, Sullivan & Cromwell; Tom Yang, Bank of America

Hand-wringing over the competitiveness of US capital markets has been fairly consistent since Sarbanes-Oxley. It intensified during the credit crisis, with the US Treasury and Congress both issuing their own proposed reforms. But according to John Coffee, the problem is exaggerated. The Adolf A Berle professor of law at Columbia Law School presented this and other, rather idiosyncratic arguments at the IFLR US financial products roundtable, which was held last month in New York.

There is no problem Coffee considers the problem overblown because the number of companies that actually choose the London Stock Exchange's main market over New York has declined. Work by Doidge, Karolvi and Stulz...