We discussed this a couple of months back on the midwives list. I
remember that a couple of Australian midwives wrote to say that cord care
at their hospitals was now to leave the cord alone. I don't recall if
they sited actual studies but for whatever reason the policy at their
hospitals had changed. Check out the archives at :

http://www.fensende.com/Users/swnymph/Midwife/cordcare.html

Keli