Old warren Buffet hits the nail on the head. He didn't get rich for nothingMr. BUFFETT: And they sat there, made reports to the Congress, you can get
them on the Internet, every year. And, in fact, they reported to Sarbanes and
Oxley every year. And they went--wrote 100 page reports, and they said,
`We've looked at these people and their standards are fine and their directors
are fine and everything was fine.' And then all of a sudden you had two of the
greatest accounting misstatements in history. You had all kinds of management
malfeasance, and it all came out. And, of course, the classic thing was that
after it all came out, OFHEO wrote a 350--340 page report examining what went
wrong, and they blamed the management, they blamed the directors, they blamed
the audit committee. They didn't have a word in there about themselves, and
they're the ones that 200 people were going to work every day with just two
companies to think about. It just shows the problems of regulation.
them on the Internet, every year. And, in fact, they reported to Sarbanes and
Oxley every year. And they went--wrote 100 page reports, and they said,
`We've looked at these people and their standards are fine and their directors
are fine and everything was fine.' And then all of a sudden you had two of the
greatest accounting misstatements in history. You had all kinds of management
malfeasance, and it all came out. And, of course, the classic thing was that
after it all came out, OFHEO wrote a 350--340 page report examining what went
wrong, and they blamed the management, they blamed the directors, they blamed
the audit committee. They didn't have a word in there about themselves, and
they're the ones that 200 people were going to work every day with just two
companies to think about. It just shows the problems of regulation.
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