Watchdogs Fear Red-State Rollback

The options proposal also could face dim prospects post-election. In addition to the opposition already voiced to it, the proposal could put further heat on Donaldson and the SEC. Although the independent Financial Accounting Standards Board has sway over accounting rules and is behind the proposal, the SEC will have the final say over how, when and whether the new rule is implemented.

Opponents of options expensing -- particularly those in the technology industry -- have argued that requiring companies to recognize options costs would inevitably force them to abandon their broad-based options programs, which would hurt their competitiveness. That argument will likely carry a lot of weight with the administration and with Republicans in Congress, observers say.

"I don't think the White House ... or senior congressional Republicans are going to take lightly the idea that this accounting board is making a decision that's going to have a serious negative impact on the economy," said the former policymaker.

In addition, the U.S. Chamber of Commerce plans to push for a "technical correction" to Sarbanes-Oxley in the coming Congress. Among the items that political observers expect the Chamber to target are the ban on executive loans and the internal controls requirements.

"There are probably a number of areas [of Sarbanes-Oxley] that should be looked at with the benefit of experience," said Hirschmann. "Anytime you do a major bill like that, it's normal that a technical corrections bill [will be] done."

To be sure, few believe the election results will lead to a complete repudiation of the recent reforms. While Enron and WorldCom may be becoming distant memories, the whiff of corporate scandal still fills the air, Spitzer's recent crusade against the insurance industry being only the latest example. As long as similar fiascos keep making headlines, policymakers will have little leeway to roll back reforms, some say.