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Last Updated: Tuesday, 21 November 2006, 01:12 GMT
US to re-examine financial rules
NYSE stock exchange
The US capital markets face "significant challenges"
The US will review financial market rules to ensure the nation can still compete globally, US Treasury Secretary Hank Paulson has said.

Speaking to New York's Economic Club, Mr Paulson said the 2002 Sarbanes Oxley Act, passed after a wave of corporate scandals, did not need changes.

But he added that the way the law was enforced needed to be changed.

Some analysts fear that the rules have become burdensome, making it harder for the US to compete internationally.

'Balance'

In his first major speech since he left his job as head of investment bank Goldman Sachs to join the US Treasury, Mr Paulson said changes were needed in the enforcement of the law.

"The right regulatory balance should marry high standards of integrity and accountability with a strong foundation for innovation, growth and competitiveness," said Mr Paulson.

He added that the regulatory balance needed to be more "agile" and "responsive to changes in today's marketplace".

Mr Paulson said the government would gather in early 2007 to examine capital markets and competitiveness.

The Sarbanes Oxley Act, implemented in the wake of corporate scandals including Enron and WorldCom, was meant to prevent such cases occurring in the future.




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