CEI Weekly: The Supreme Court Rules Against PCAOB

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CEI Weekly
July 2, 2010

>>The Supreme Court Speaks: Free Enterprise Fund v. PCAOB

This week, after nearly five years, the U.S. Supreme Court handed down its decision in CEI’s challenge to the Sarbanes-Oxley corporate accounting law and the quasi-government enforcement entity it spawned, the Public Company Accounting Oversight Board. The court found that the PCAOB violated the Separation of Powers clause of the U.S. Constitution, by impermissibly insulating the members of the board from removal by the Securities and Exchange Commissioners who appoint them. Unfortunately, the court declined to go further and invalidate the procedure by which the members of the board are selected in the first place. While we feel the court should have more strongly questioned the validity of both the PCAOB and Sarbanes-Oxley itself, we take it as a welcome sign that the flaws of the entire edifice are receiving greater scrutiny. We look forward to more opportunities to roll back the excessive and counterproductive burdens imposed by the law and enforced by the board. CEI’s Sam Kazman and Hans Bader served as co-counsel in the case alongside Michael Carvin of the law firm Jones Day and the Free Enterprise Fund, a non-profit organization founded by investment professional Mallory Factor and current Wall Street Journal editorial board member Stephen Moore.

>>[Video]CEI on the Air
Sam Kazman on Fox Business discussing the PCAOB Supreme Court Decision Wayne Crews on Fox News’ Glenn Beck discussing the Presidential Internet “Kill Switch”

>>Shaping the Debate
Is Scott Brown a Game-Changer on the Financial Bill?
John Berlau’s op-ed in the National Review Online

‘Green’ Energy Company Threatens Economics Professor … with Package of Dismantled Bomb Parts
Chris Horner’s op-ed in Pajamas Media

Market Meddling Led to BP Oil Spill
Dan Compton’s letter to the editor in The Guardian

US Supreme Court Invalidates Part Of Accounting Board
Hans Bader’s quote in Fox Business

Supreme Court SOX Ruling Has IT Implications
John Berlau’s quote in Yahoo! News

>>Best of the Blogs
Can Businessmen (and Women) Make Good Politicians
by Fred Smith

Blowout Prevention Act — or Oil Production Prevention Act?
by Marlo Lewis

Bio Jet Fuel — the Real $600 Toilet Seat?
by Marlo Lewis

>>LibertyWeek Podcast
Episode 99: Sarbanes-Oxley Smackdown
Richard Morrison and Marc Scribner welcome special guests Sam Kazman and Berin Szoka to Episode 99 of the LibertyWeek podcast. We start with Sam’s take on the Supreme Court’s ruling in the case of Free Enterprise Fund v. Public Company Accounting Oversight Board and its implications for financial regulation reform. We continue with an interview with Progress and Freedom Foundation Senior Fellow Berin Szoka. We talk about free speech, privacy concerns, the future of commercial space exploration and his forthcoming book (with Adam Thierer) about the next digital decade.

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Charles Huang
Web and Media Associate
Competitive Enterprise Institute
[email protected]