However, during this same period, the equally dramatic actual or pending bankruptcies of WorldCom, a long-distance telecommunications company, and Tyco, a diversified equipment manufacturer, influenced the content of the legislation. Sarbanes-Oxley was principally a reaction to this failure. In the opinion of most observers of securities legislation, SOX is viewed as the most important new law enacted since the passage of the Securities and Exchange Act of 1934.
The legislation thus carried the short title of Sarbanes-Oxley Act of 2002, subsequently abbreviated as SOX or SarbOx. The act's two chief sponsors were Senator Paul Sarbanes (D-MD) and Representative Michael G.
Exactly 241 days later, on July 30, 2002, the President signed into law the Public Company Accounting Reform and Investor Protection Act of 2002. Investors lost billions and employees lost their life savings. It had been over $75 a share one year earlier. Its stock closed at 72 cents on December 2. Enron, with assets of $62.8 billion, became the largest bankruptcy in U.S. This had become known less than a month before. It had inflated its earnings by nearly $600 million in the 1994-2001 period. On December 2, 2001, the Enron Corporation, a highly-respected and rapidly growing energy-trading company filed for bankruptcy.
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