Management and Control of Corporation - Essay ExampleMoreover, Romano (1998, 2359) states that although ‘both the states and the federal government regulate securities transactions, the current regulatory arrangements are a far cry from competitive federalism; the federal securities regime, consisting of the Securities Act of 1933 and the Securities Exchange Act of 1934, applies to all publicly traded firms and is a mandatory system of disclosure regulation, bolstered by antifraud provisions; while the federal laws do not preempt all state regulation, states cannot lower the regulatory standards applicable to firms covered by the federal regime because its requirements are mandatory; they have also been prevented from raising regulatory standards on some occasions’. Moreover, in the summer of 2002, Congress ‘passed the Sarbanes-Oxley Act (2) in response to a barrage of corporate governance crises and flagging investor confidence in the securities markets’ (Song, 2003, 257). The historical background of the Securities legislation in the U.S.
