Responses to Other Students: Review the opposing thread comments.

Responses to Other Students: Review the opposing thread comments.

Respond to at least two of your classmates in the opposing thread with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening.

For assistance with your assignment, please use your text, Web resources, and all course materials.
Sarah Ramos
Dodd-Frank Act applies regulations on financial industries. It’s done to prevent collapse of major financial institutions. The act implemented major rules of regulation to avoid another recession. Banks are regulated and require people that are trying to get a home be able to prove that they can pay the loan before they get approved. Banks were using people’s money to set risky bets. Due to this act stocks are up. Sarbanes-Oxley Act is a set of laws that were placed due to financial statement fraud. It helped bring back investors confidence by applying new rules. Increased prison time for white-collar crimes. Evaluation of internal controls of a company’s finances are being done. Companies have audit committees that are not employed by the company.
Dodd-Frank act should be flexible as t markets are up again and banks should be trusted again to be riskier with stocks. All the regulations don’t mean that everyone is safe. Historically, National commercial banks showed is that the ratio of net income to assets were stable. There were huge changes in equity to assets but the rate of return was not impacted. The risk of default can still occur. Sarbanes-Oxley requests transparencies. It is a lot of pressure and requires lots of additional add on’s such as auditors, new Jasmine Vega
etc.
Hartung, A. (2015, August 16). Regulations Work: Benefits Of SOX And Dodd- Frank. www. Forbes.Com. https://www.forbes.com/sites/adamhartung/2015/08/16/regulations-work-benefits-of-sox-and-dodd-frank/?sh=bb365df11574
(n.d.). The Laws That Govern the Securities Industry. www.Investor.Gov. https://www.investor.gov/introduction-investing/investing-basics/role-sec/laws-govern-securities-industry
I am for the Sarbanes-Oxley Act. From my understanding the board members were not doing their job. If you have a job at this level and you are “checking out” and not paying attention to what is going on then you absolutely deserve to be replaced. One should take pride in doing a great job. Passing the Sarbanes-Oxley Act could not have come at a better time. Companies (directors) should be held accountable for their actions and plentalized accordingly.
I am NOT for it. I cannot agree with the Sarbanes-Oxley Act because this will allow companies to be more creative when it comes to falsifying documents. And for the right price the third party companies doing the overview could easily turn a blind eye. Although these laws were put into place for our forever changing world, our technology has also adapted.
One great example on why I do not agree with the SOX is because small businesses possibly can take a hard hit. They are now liable for any incidents. Soxlaw.com says, “So when the increased audit fee of SOX compliances is increased, ask yourself if your business can afford to pay $10,000 a day due to a data breach. ”
I remember reading about the Dodd-Frank Act (passed 2010). What I also remember is many people lost their homes because they could not afford to live in their home that was sold to them in hopes of bringing the economy back from the 2007-2008 crisis. So many homes were foreclosed.
Wells Fargo Bank was in deep trouble and ended up having to be bailed out. Rollingstone says, “Basically, Wells Fargo screwed the FHA and HUD by mass-approving loans without regard for whether they were defective or not.” Following the LA times, When Wells Fargo discovered problems with the loans, it failed to notify HUD, which administers the FHA program, as required, the suit said. The action alleges more than 10 years of misconduct. The extremely poor quality of Wells Fargo’s loans was a function of management’s nearly singular focus on increasing the volume of FHA originations – and the bank’s profits – rather than on the quality of the loans being originated,” Bharara’s office said in a statement. If there is a will, there is a way. We know doubtedly need to keep up with changes, however changes should only be made if we can also spruce up, “security” with it.

References
The pros and cons of Sarbanes-Oxley Act (2021)
https://www.soxlaw.com/the-pros-and-cons-of-the-sarbanes-oxley-act/
Matt Taibbi OCTOBER 10, 2012

U.S. Sues Wells Fargo: Yet Another Bailed-Out Bank Accused of Fraud

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