DOCSLIB.ORG

The Impact of the Sarbanes-Oxley Act (Sox) on Small-Sized Publicly Traded Companies and Their Communities

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Impact of the Sarbanes-Oxley Act (Sox) on Small-Sized Publicly Traded Companies and Their Communities 1 THE IMPACT OF THE SARBANES-OXLEY ACT (SOX) ON SMALL-SIZED PUBLICLY TRADED COMPANIES AND THEIR COMMUNITIES A thesis presented by Abayomi Oluwatosin Alase to The School of Education In partial fulfillment of the requirements for the degree of Doctor of Education in the field of Organizational Leadership Studies College of Professional Studies Northeastern University Boston, Massachusetts March 2016 2 DEDICATION This thesis is dedicated to all my friends and family who have helped me with the navigation of this incredible educational journey. More importantly, I would like to dedicate this thesis to three people who have helped shape my life and supported me through this wonderful journey. This journey has been the single most rewarding and fulfilling experience of my life. As a youngster, I found strength and motivation in my late parents, especially my mother. My mother, an African small market trader with a sixth grade education, believed education to be the only avenue to succeed in life. My mother instilled in all of her children the value of education; she would go to any length to make sure she positioned her children to receive the best opportunity in life. I remember when I was about to start what we used to call secondary school in Nigeria in the late nineteen seventies, early nineteen eighties, my mother felt that it was important for me to enroll in a school that is well-known with a national reputation. She worked selflessly and tirelessly to get me enrolled in the oldest (and first organized school) in Nigeria – Baptist Academy. For all she did for me, I dedicate this thesis to my late mother (Mrs. Ebuola Janet Alase), because she is truly the person who laid the foundation for my life/educational journey. The second most important person in my life is my Son – Abayomi Oluwatosin Alase Jr. (AJ). Tosin is my life (he and his mother, my wife, are both my life); looking at my son’s face energizes and encourages me to keep moving forward. His presence and funny personality keeps things in perspective for me. I thank God for bestowing him to me and my wife; he is the most precious gift the Lord has ever blessed me and my wife with – And I thank HIM (The Lord) all the time for his life. 3 Finally, the last person to whom I want to dedicate this thesis to is my lovely wife. Donya has been there for me since we met at College thirteen years ago. She has supported me through difficult times; she never waivered in her support for my aspiration to go back to school and earn my doctoral degree. From the beginning my wife has always been my biggest and loudest cheerleader as well as my important (smartest) critic. She is my confidant, my wife and my best friend. Donya is also my only human proof-reader; she has tirelessly read and re-read every paper I have ever written in this doctoral journey. In all seriousness, even though my name will appear on the certificate, I know that we both went through this experience together – I love you, Baby. 4 SPECIAL DEDICATION My special and most important dedication goes to my Lord Jesus Christ for HIS presence in my life, because without HIM this journey would not have been possible. I know that only by HIS grace I am able to do all these things. HE guided me through what to say, what to write and how to write. I have never mixed-words regarding where my thoughts and ideas came from, because I know from the beginning that it is only by HIS grace and power that I was able to write all the papers I have written and presented (including this thesis paper). More importantly, I always felt HIS guidance and blessed hands in my life, my wife’s life, and our son’s life – HE is always there for us night and day. We thank you, Lord, for your presence, your grace and your blessings in our lives – Amen. 5 ACKNOWLEDGEMENTS It is a privilege and pleasure to have Dr. Karen Reiss Medwed as my primary advisor. I am sincerely grateful and thankful for the opportunity to learn from Prof. Medwed, her insightfulness and valuable feedback have been noting but incredible for my thesis. Secondly, I would like to thank my second reader Dr. Jane LohMann for all of her feedback and supports; I am extremely grateful to her for her advice and kindness. Thirdly, I will also like to thank my third (external) reader, Dr. Marion Mutabazi Mugisha; Dr. Mugisha is a friend who has been very helpful with advice on how to fine tune my thesis paper; I truly appreciate his thoughtful advice and encouragement. Last, but not the least, I truly cannot miss this opportunity to thank Dr. Carol Young; Dr. Young was my research class (Fundamentals of Research) instructor and was very instrumental in helping me to navigate through all the nuances involved in selecting a thesis research project. I am very thankful for her help and patience throughout the process. Finally, I want to thank my family, friends, colleagues, professors and participants for their wonderful patience, guidance, and feedback throughout this incredible educational journey. It has truly been a great experience for the opportunity to attend the Northeastern University Doctor of Education program. 6 ABSTRACT This thesis examined the impact of the Sarbanes-Oxley Act (SOX) on small-sized publicly traded businesses in America and the communities they operate in. This Act (Sarbanes- Oxley Act) was enacted by the U.S Congress and signed into law by President George W. Bush in 2002. The Act has had very devastating and detrimental impacts on small-sized publicly traded businesses and the communities they operate in; according to opponents of the Act, they pointed out the financial burden that many small-sized publicly traded companies had to face in the process of complying with the Act. For example, they pointed to the enormous cost of purchasing new equipment (i.e., computers) in order to comply with the requirements of the Act. The most devastating and toughest element of the Act, according to the opponents of the Act, was the requirement that publicly traded companies hire outside auditors to audit and attest to the stability and viability of their internal control systems. As a result of the stringent requirements of the Act and the costs that is associated with the requirements, many small-sized publicly traded companies have either closed down or de-listed themselves from the U.S securities markets (U.S stock exchanges). Keywords: Sarbanes-Oxley Act, SOX, Enron Corp., WorldCom Corp., Tyco International 7 TABLE OF CONTENTS Dedication…………………….……………………………………………………………….ii Special Dedication……………...……………………………………………………………..iv Acknowledgement…………………………………………………………………………….v Abstract………………………………………………………………………………………..vi Chapter 1: Introduction Statement of the Problem……………………………………………………….….….14 Historical background on the Sarbanes-Oxley Act of 2002………...…….……....14 The Research Problem………………………………………………….….….......15 Evidence Justifying the Research Problem………………………….…….……....15 Deficiencies in Evidence…………………………………………….……….…...16 Audience…………………………………………………………………..……....17 Significance Statement………………………………………………………….….......17 Positionality Statement…………………………………………………….……..……18 Author’s Background……………………………………………………………...18 Positionality Statement – Summation……………………………….….……...…..19 Purpose Statement and Research Questions………………………………….….......20 Research primary questions…………...……………………………………...........20 Theoretical Framework………………………………………………………...….…..20 Historical background on the theoretical framework – Liminality……………..….21 Alignment of qualitative approach & the construct of theoretical framework…….26 Liminal timeline for the implementation of the Sarbanes-Oxley Act………...…...27 Alignment of the theoretical framework & the research problem of practice..........28 8 Alignment of the theoretical framework and the research questions………....….….29 Conclusion……………………………………………………………………….…….…30 Chapter 2: Literature Review Introduction……………………………………………………………..……….…….…31 Literature Review on the Sarbanes-Oxley Act (Also known as SOX)……….…….....32 Implication of the Sarbanes-Oxley Act on American Businesses………..….……....32 Impact of Sarbanes-Oxley Act on Small-Sized Businesses in America…….…...….36 Critical Shifting Views on the Question of Implementation Cost of SOX….….…...41 New Internal Control Requirement of the Sarbanes-Oxley Act………….................43 Impact of SOX on IT Infrastructure in the Publicly Traded Companies……………46 Impact of Sarbanes-Oxley Act on the Accounting Profession…………....................48 Impact of Congressional and implementation processes on the SOX Act…….…….50 Observation of the SOX Act on the Business Communities in America……………51 Summation………………………………………………………………………………..54 Conclusion………………………………………………………………………..……….55 Literature Review on two additional federal regulatory Acts……………….………..57 Literature Review on the Dodd-Frank Act………………………………...………...57 Literature Review on the Affordable Care Act………………………….…………...67 Chapter 3: Methodology Methodology………………………………………………………………….………..…79 Research primary questions.………......……………………………….…………....80 Research Tradition/Design………………………………….……………………..…….80 Participants………………………………………………………………….………...….81 9 Recruitment and access......................................................................................................83 Data collection………………………………………………………….………………....84 Data Storage and Management……………………………………….………………....85 Data Analysis……………………………………………………………………………..86 Data coding process…………………………………………………………..……..87 Credibility Apparatus of the research study……………………………………..…….89
Load more

Recommended publications
  • Nomination of Dr. Carla D. Hayden, to Be Librarian of Congress
    S. HRG. 114–285 NOMINATION OF DR. CARLA D. HAYDEN, TO BE LIBRARIAN OF CONGRESS HEARING BEFORE THE COMMITTEE ON RULES AND ADMINISTRATION CONGRESS OF THE UNITED STATES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION APRIL 20, 2016 Printed for the use of the Committee on Rules and Administration ( U.S. GOVERNMENT PUBLISHING OFFICE 20–359 WASHINGTON : 2016 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Sep 11 2014 15:14 Jun 23, 2016 Jkt 097434 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\20359.TXT SHAWN DeShaun on LAP51NQ082 with DISTILLER COMMITTEE ON RULES AND ADMINISTRATION SECOND SESSION ROY BLUNT, Missouri, Chairman LAMAR ALEXANDER, Tennessee CHARLES E. SCHUMER, New York MITCH MCCONNELL, Kentucky DIANNE FEINSTEIN, California THAD COCHRAN, Mississippi RICHARD J. DURBIN, Illinois PAT ROBERTS, Kansas TOM UDALL, New Mexico RICHARD SHELBY, Alabama MARK R. WARNER, Virginia TED CRUZ, Texas PATRICK J. LEAHY, Vermont SHELLEY MOORE CAPITO, West Virginia AMY KLOBUCHAR, Minnesota JOHN BOOZMAN, Arkansas ANGUS S. KING, JR., Maine ROGER WICKER, Mississippi STACY MCHATTON MCBRIDE, Staff Director KELLY L. FADO, Democratic Staff Director (II) VerDate Sep 11 2014 15:14 Jun 23, 2016 Jkt 097434 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\20359.TXT SHAWN DeShaun on LAP51NQ082 with DISTILLER C O N T E N T S OPENING STATEMENT OF: Hon. Roy Blunt, Chairman, a U.S. Senator from the State of Missouri ............
    [Show full text]
  • The Sarbanes-Oxley Act: the First Decade July 30, 2012
    The Sarbanes-Oxley Act: The First Decade July 30, 2012 PROFESSOR MARK BEASLEY: Good afternoon. Welcome to The Sarbanes-Oxley Act: The First Decade. My name is Mark Beasley. I am the Deloitte Professor of Enterprise Risk Management and Professor of Accounting in the Poole College of Management at North Carolina State University which is based in Raleigh, North Carolina. It is a pleasure to welcome our audience here at the Jack Morton Auditorium on the campus of The George Washington University in Washington D.C. as well as those who are joining us live via the internet through the SEC Historical Society’s virtual museum at www.sechistorical.org. It is a pleasure to welcome you all here today. Ten years ago today, President George Bush signed into law The Sarbanes-Oxley Act of 2002 after it was approved by the House with a vote of 423 to 3 and by the Senate with a vote of 99 to 0. At the time in 2002, we were on the heels of the corporate scandals at Enron, WorldCom and others that followed, Adelphia and Tyco and beyond, as well as the dotcom crisis. We were also dealing with the impact of 9/11 as well. The Sarbanes-Oxley Act was designed to enhance and strengthen corporate governance, particularly over the financial reporting processes in public companies in the United States. As you know, the act had a number of provisions primarily to enhance corporate governance, to place more responsibilities and authority on the shoulders of boards of directors, particularly audit committees, as well as to strengthen the accountabilities for management of public companies, the auditors of the financial statements, and to try to enhance the strength of internal controls, financial reporting and particularly to increase transparency over the financial reporting and disclosure process.
    [Show full text]
  • Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 109 CONGRESS, SECOND SESSION
    E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 109 CONGRESS, SECOND SESSION Vol. 152 WASHINGTON, THURSDAY, MARCH 16, 2006 No. 34 Senate (Legislative day of Wednesday, March 15, 2006) The Senate met at 9 a.m., on the ex- sume consideration of S. Con. Res. 83, to the budget resolution. The two man- piration of the recess, and was called to which the clerk will report. agers will then control the remaining order by the President pro tempore The legislative clerk read as follows: time until 1:30 this afternoon when all (Mr. STEVENS). A concurrent resolution (S. Con. Res. 83) time expires. setting forth the congressional budget for At 1:30 today, we begin disposing of PRAYER the United States Government for fiscal year the pending amendments and any addi- The Chaplain, Dr. Barry C. Black, of- 2007 and including the appropriate budgetary tional amendments that are offered. fered the following prayer: levels for fiscal years 2007 and 2008 through This is the beginning of the so-called Let us pray. 2011. vote-arama. This is a difficult process. God of lights, who into chaotic dark- The PRESIDENT pro tempore. Under These votes will likely continue for a ness commanded brightness, shine into the previous order, the time from 9 while today and possibly into the our world with the fullness of Your a.m. to 10:30 a.m. shall be evenly di- evening. I urge my colleagues to re- love. Illuminate our minds so we will vided between the Senator from New main in or around the Chamber.
    [Show full text]
  • HOUSE of REPRESENTATIVES-Wednesday, January 24, 1973 the House Met at 12 O'clock Noon
    January 24, 1973 CONGRESSIONAL RECORD -HOUSE 2105 HOUSE OF REPRESENTATIVES-Wednesday, January 24, 1973 The House met at 12 o'clock noon. The message also announced that the ica in Congress assembled, That the President The Chaplain, Rev. Edward G. Latch, Senate had passed without amendment of the United States is authorized and re­ D. D., offered the following prayer: a joint and concurrent resolution of the quested to issue a proclamation: (1) declar­ ing the week of February 11 to 17, 1973, to Yea, though I walk through the valley House of the following titles: be "National Voctl:tional Education Week"; of the shadow oj death, I will fear no H.J. Res. 163. Joint resolution designating (2) inviting the Governors of the States and the week commencing January 28, 1973, as the heads of local governments to issue sim­ evil, for Thou art with me.-Psalm 23: 4. "International Clergy Week in the United 0 ilar proclamations; and (3) calllng on the God and Father of us all, in deep States", and for other purposes; and people of the United States to become bet­ sadness of heart we lift our spirits unto H. Con. Res. 90. Concurrent resolution au­ ter acquainted with the services available Thee as we journey through the valley thorizing the remains of former President through vocational education. of the shadow of death with the family Lyndon B. Johnson to lie in state in the of our beloved Lyndon Baines Johnson. rotunda of the Capitol. The joint resolution was ordered to be We thank Thee for his long and distin­ The message also announced that the engrossed and read a third time, was guished service to his State and our coun­ Senate had passed a bill of the following read the third time, and passed, and a try, for his contribution as a Member of motion to reconsider was laid on the title, in which the concurrence of the table.
    [Show full text]
  • Financial Institutions Group Newsletter
    WILMER, CUTLER & PICKERING Financial Institutions Group Newsletter AUGUST 13, 2001 ANTI-MONEY LAUNDERING HIGH ON THE RADAR SCREEN ne of the hottest current topics in the The regulators’ order cited several failures on the part financial community is anti-money launder- of U.S. Trust to comply with the anti-money launder- Oing. Indeed, regulators, legislators, and law ing procedures of the Bank Secrecy Act, as well as enforcement agencies – both in the United States other statutory violations. For example, U.S. Trust and internationally – have served notice that they apparently did not comply with the record-keeping will make anti-money laundering a priority this year and reporting requirements for currency transactions and in years to come. In addition, the focus of over $10,000 and lacked adequate systems to catch attention, which has traditionally been directed transactions that were structured to avoid the principally at banks, is now broadening to include $10,000 reporting threshold. securities firms and insurance companies. In this environment, it is increasingly important for all U.S. Trust committed to take numerous detailed types of financial institutions to ensure that they actions to fix the problems, including (1) hiring new have in place robust anti-money laundering controls personnel for the sole purpose of ensuring compli- and procedures. ance with anti-money laundering laws, (2) develop- ing and submitting to regulators new policies and Enforcement Actions Highlight the Need for procedures to comply with anti-money laundering Money Laundering Controls. Two recent laws, and (3) providing for rigorous and on-going enforcement actions brought against U.S.
    [Show full text]
  • Chief Actuary's Communications with Congress
    United States Government Accountability Office Washington, DC 20548 B-302911 September 7, 2004 The Honorable Frank R. Lautenberg The Honorable Tom Daschle The Honorable Edward M. Kennedy The Honorable Jack Reed The Honorable Jon S. Corzine The Honorable John F. Kerry The Honorable Patrick J. Leahy The Honorable Debbie Stabenow The Honorable Tim Johnson The Honorable Mark Pryor The Honorable Maria Cantwell The Honorable Joseph I. Lieberman The Honorable Carl Levin The Honorable Paul Sarbanes The Honorable Barbara A. Mikulski The Honorable Charles Schumer The Honorable John Edwards The Honorable Hillary Rodham Clinton United States Senate Subject: Department of Health and Human Services—Chief Actuary’s Communications with Congress By letter dated March 18, 2004, you asked for our legal opinion regarding a potential violation of the prohibitions in the Consolidated Appropriations Act of 2004 and the Consolidated Appropriations Resolution of 2003 on the use of appropriated funds to pay the salary of a federal official who prohibits another federal employee from communicating with Congress. Pub. L. No. 108-199, Div. F, tit. VI, § 618, 188 Stat. 3, 354 (Jan. 23, 2004); Pub. L. No. 108-7, Div. J, tit. V, § 620, 117 Stat. 11, 468 (Feb. 20, 2003). Specifically, you ask whether alleged threats made by Thomas A. Scully, the former Administrator of the Centers for Medicare & Medicaid Services (CMS), to CMS Chief Actuary Richard S. Foster to terminate his employment if Mr. Foster provided various cost estimates of the then-pending prescription drug legislation to members of Congress and their staff made CMS’s appropriation unavailable for the payment of Mr.
    [Show full text]
  • Governor O'malley, County Executive Leggett Announce Region's First Clean Energy Center
    Press Release: Maryland Receives Grant to Help Strengthen Underperfo... http://www.governor.maryland.gov/pressreleases/090302b.asp Maryland Receives Grant to Help Strengthen Underperforming Schools National Governor’s Association grant is funded by Gates and Prudential Foundations ANNAPOLIS, MD (March 2, 2009) – Governor Martin O’Malley announced today that Maryland has received a grant from the National Governors Association (NGA) for a one-year project designed to spur improvement in chronically low-performing schools. The grant, one of just four funded by the Bill and Melinda Gates Foundation and the Prudential Foundation, will provide the State with up to $150,000, plus assistance in research and development of new strategies to increase academic achievement in underperforming schools. The NGA’s Center for Best Practices will assist Maryland in the development of its plan. “America’s number one public school system must do everything it can to remain the best in the nation while ensuring that every Maryland child receives a quality education regardless of where they live,” said Governor O’Malley. “The National Governor’s Association shares these principles, and we are grateful for this support. Their partnership in this endeavor demonstrates that we all have a stake in the future of our children.” Maryland has gained a well-deserved reputation for its high academic standards and strong accountability measures, and those measures have paid off over time. All 24 school systems across the state have posted steady academic improvement for five straight years, and Education Week Magazine recently cited the state’s public school system as the nation’s best.
    [Show full text]
  • Barbara A. Mikulski
    Barbara A. Mikulski U.S. SENATOR FROM MARYLAND TRIBUTES IN THE CONGRESS OF THE UNITED STATES E PL UR UM IB N U U S VerDate Aug 31 2005 12:18 May 15, 2017 Jkt 098900 PO 00000 Frm 00003 Fmt 6687 Sfmt 6687 H:\DOCS\BYEBYE\BYEBYE16\23051.TXT KAYNE congress.#15 Barbara A. Mikulski VerDate Aug 31 2005 12:18 May 15, 2017 Jkt 098900 PO 00000 Frm 00004 Fmt 6687 Sfmt 6687 H:\DOCS\BYEBYE\BYEBYE16\23051.TXT KAYNE 73-500_mikulski.eps S. DOC. 114–22 Tributes Delivered in Congress Barbara A. Mikulski United States Congressman 1977–1987 United States Senator 1987–2017 ÷ U.S. GOVERNMENT PUBLISHING OFFICE WASHINGTON : 2017 VerDate Aug 31 2005 12:18 May 15, 2017 Jkt 098900 PO 00000 Frm 00005 Fmt 6687 Sfmt 6687 H:\DOCS\BYEBYE\BYEBYE16\23051.TXT KAYNE Compiled under the direction of the Joint Committee on Printing VerDate Aug 31 2005 12:18 May 15, 2017 Jkt 098900 PO 00000 Frm 00006 Fmt 6687 Sfmt 6687 H:\DOCS\BYEBYE\BYEBYE16\23051.TXT KAYNE CONTENTS Page Biography .................................................................................................. v Farewell Address ...................................................................................... vii Proceedings in the Senate: Tributes by Senators: Boozman, John, of Arkansas ..................................................... 37 Boxer, Barbara, of California .................................................... 18, 20 Cardin, Benjamin L., of Maryland ............................................ 11, 15 Casey, Robert P., Jr., of Pennsylvania ..................................... 11, 36 Cochran,
    [Show full text]
  • Nomination of Dr. Carla D. Hayden, to Be Librarian of Congress
    S. HRG. 114–285 NOMINATION OF DR. CARLA D. HAYDEN, TO BE LIBRARIAN OF CONGRESS HEARING BEFORE THE COMMITTEE ON RULES AND ADMINISTRATION CONGRESS OF THE UNITED STATES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION APRIL 20, 2016 Printed for the use of the Committee on Rules and Administration ( U.S. GOVERNMENT PUBLISHING OFFICE 20–359 WASHINGTON : 2016 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Sep 11 2014 15:14 Jun 23, 2016 Jkt 097434 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 C:\DOCS\20359.TXT SHAWN DeShaun on LAP51NQ082 with DISTILLER COMMITTEE ON RULES AND ADMINISTRATION SECOND SESSION ROY BLUNT, Missouri, Chairman LAMAR ALEXANDER, Tennessee CHARLES E. SCHUMER, New York MITCH MCCONNELL, Kentucky DIANNE FEINSTEIN, California THAD COCHRAN, Mississippi RICHARD J. DURBIN, Illinois PAT ROBERTS, Kansas TOM UDALL, New Mexico RICHARD SHELBY, Alabama MARK R. WARNER, Virginia TED CRUZ, Texas PATRICK J. LEAHY, Vermont SHELLEY MOORE CAPITO, West Virginia AMY KLOBUCHAR, Minnesota JOHN BOOZMAN, Arkansas ANGUS S. KING, JR., Maine ROGER WICKER, Mississippi STACY MCHATTON MCBRIDE, Staff Director KELLY L. FADO, Democratic Staff Director (II) VerDate Sep 11 2014 15:14 Jun 23, 2016 Jkt 097434 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 C:\DOCS\20359.TXT SHAWN DeShaun on LAP51NQ082 with DISTILLER C O N T E N T S OPENING STATEMENT OF: Hon. Roy Blunt, Chairman, a U.S. Senator from the State of Missouri ............
    [Show full text]
  • WP-Economic Mobility-FNL
    REFORMING THE REMITTANCE RANSFER ARKET NNATIONALCLR COUNCIL OF LA RAZA T M By Beatriz Ibarra* INTRODUCTION In recent years, policy analysts and economists have focused on the 2005 economic effect that remittances have on developing countries. Remittances, the money that immigrants living in the United States send to their family and friends in their home countries, account for 2.2% of Mexico’s gross domestic product, totaling $13.66 billion in 2003.1 Recent studies have shed light on the unfair practices that exist in the remittance transfer market. For example, the transaction costs of remittance transfers often exceed 20% of the total amount of the transaction,2 and this cost is often passed to the consumer through hidden fees and variations in exchange rates. Lowering the costs associated with remittance transfers by five percentage points could generate annual savings of $1 billion for Latino** households and their families abroad.3 The lack of transparency hinders the ability of Latinos to make informed choices in the short term when choosing a remittance transfer service provider, and the high costs of the transaction acts as another barrier to the accumulation of assets and wealth by Latinos in the long term. Creating transparency and decreasing transfer fees would enable Latinos to save money and begin to close the wealth gap that exists today between Whites and Latinos. Studies show that there is a significant Latino/White wealth gap in the U.S. The median net worth of Hispanic households in 2002 was $7,932, compared to $88,651 for White non-Hispanic households.4 In 2002, 25.4% of Latino households did not own any assets other than a vehicle or unsecured liabilities, compared to only 6.3% of White households.5 * Beatriz Ibarra is the Assets Policy Analyst at NCLR.
    [Show full text]
  • Paul Sarbanes Awarded Greece's Highest Honor
    ✽ CMYK CMYK ✽ O C V ΓΡΑΦΕΙ ΤΗΝ ΙΣΤΟΡΙΑ Bringing the news ΤΟΥ ΕΛΛΗΝΙΣΜΟΥ to generations of ΑΠΟ ΤΟ 1915 The National Herald Greek Americans A WEEKLY GREEK AMERICAN PUBLICATION c v www.thenationalherald.com VOL. 11, ISSUE 555 May 31, 2008 $1.00 GREECE: 1.75 EURO Archbishop Demetrios Paul Sarbanes Awarded Greece’s Highest Honor Meets Church and Political Former U.S. Senator Honored with Order of Leaders in Moscow Visit The Phoenix Cross By National Herald Staff such a deep commitment to the Or- By George Kakarnias Special to The National Herald thodox Faith. Special to The National Herald In the evening, the Archbishop BOSTON – Archbishop Demetrios and the delegation were guests of ATHENS – Former U.S. Senator of America concluded a six day offi- Patriarch Alexios at a concert and Paul Sarbanes addressed an event cial visit in Moscow with meetings performance in the Auditorium of organized by the "Constantine and visits of the high ranking eccle- Christ the Savior Cathedral. The Karamanlis Institute for Democra- siastical and political leaders of performance, including music, po- cy" at a central Athens hotel on Russia. Archbishop Demetrios visit- etry and dance, were a continua- Monday, May 26, during a visit to ed Russia upon the invitation of Pa- tion of the celebration of Slavic Let- Greece where he was also be- triarch Alexios of Moscow and All ters Day. stowed Greece's highest honor, the Russia. According to News Releases Before the official visit to the Order of the Phoenix Cross, by the issued by the Greek Orthodox Arch- parliament of the Russian Federa- President of the Republic Karolos diocese of America, Archbishop tion, the Archbishop, accompanied Papoulias.
    [Show full text]
  • The Reconstruction of Afghanistan: an Update
    S. HRG. 108–37 THE RECONSTRUCTION OF AFGHANISTAN: AN UPDATE HEARING BEFORE THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS FIRST SESSION FEBRUARY 12, 2003 Printed for the use of the Committee on Foreign Relations ( Available via the World Wide Web: http://www.access.gpo.gov/congress/senate U.S. GOVERNMENT PRINTING OFFICE 87–575 PDF WASHINGTON : 2003 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-MAY-2000 15:04 Jun 13, 2003 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 87575 SFORELA1 PsN: SFORELA1 COMMITTEE ON FOREIGN RELATIONS RICHARD G. LUGAR, Indiana, Chairman CHUCK HAGEL, Nebraska JOSEPH R. BIDEN, JR., Delaware LINCOLN CHAFEE, Rhode Island PAUL S. SARBANES, Maryland GEORGE ALLEN, Virginia CHRISTOPHER J. DODD, Connecticut SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts MICHAEL B. ENZI, Wyoming RUSSELL D. FEINGOLD, Wisconsin GEORGE V. VOINOVICH, Ohio BARBARA BOXER, California LAMAR ALEXANDER, Tennessee BILL NELSON, Florida NORM COLEMAN, Minnesota JOHN D. ROCKEFELLER IV, West Virginia JOHN E. SUNUNU, New Hampshire JON S. CORZINE, New Jersey KENNETH A. MYERS, JR., Staff Director ANTONY J. BLINKEN, Democratic Staff Director (II) VerDate 11-MAY-2000 15:04 Jun 13, 2003 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 87575 SFORELA1 PsN: SFORELA1 CONTENTS Page Biden, Hon. Joseph R., Jr., U.S. Senator from Delaware, prepared statement . 10 Hagel, Hon. Chuck, U.S. Senator from Nebraska, prepared statement ............
    [Show full text]