What is needed is enforcement of the laws that exist. That is not a popular position with Republicans"... I couldn't disagree more. I voted for Bush because Gore was for more laws and less enforcement. He aimed to make criminals of anyone who owned a gun and publicly denounced the 2nd Amendment! You mention punishing criminals and Democrats shudder.
Bush was the lesser of two evils, but evil none the less. His promises sounded great. If I recall one such promise, smaller government not bigger government. Now, after 1 new government agency, I see calls for a 2nd to oversee Corporate America...
"The bill would establish an independent accounting oversight board with powers to investigate and punish corporate auditors."
What the hell is the purpose of the justice dept? Why can't this country get a politician that is in touch with the individual? We can't hold our CEOs accountable, we can't hold our politicians accountable... Bush needs to concentrate on the country and stay the hell out of WCOM's business. When he can fix the FBI and Immigration and Justice depts then maybe he can spend time looking at the private sector!
WASHINGTON (CBS.MW) -- The growing crisis of confidence in American corporations moves to the top of Washington's agenda this week as lawmakers said Sunday jail time for crooked executives should be the next step.
"Some of these corporate criminals need to go to jail," Rep. Billy Tauzin, chairman of the House Energy and Commerce Committee told NBC-TV Sunday.
The Republican said he believes investor confidence will come back "as soon as one of these major corporate leaders is indicted."
Tauzin's committee is investigating the major bankruptcies of former energy trader Enron and telecommunications firm Global Crossing.
Senate Majority Leader and Democrat, Tom Daschle echoed Tauzin's sentiment on CBS' "Face the Nation."
"We have to go after the bad actors. There has to be an aggressive effort on the part of the Justice Department."
Meanwhile, politicians eager to get to the bottom of the scandals or to make the most of them are rushing back to the capital on Monday to hear testimony from WorldCom executives, while President Bush prepares for a major speech on the topic in New York on Tuesday.
The Senate is scheduled to begin debate on an accounting reform bill this week that aims to close some of the loopholes that hid the true financial picture of companies like Enron, Global Crossing and WorldCom from the public.
The bill would establish an independent accounting oversight board with powers to investigate and punish corporate auditors.
Former WorldCom CEO Bernie Ebbers and former chief financial officer Scott Sullivan have been subpoenaed to testify at a hearing held by the House Financial Services Committee at 1 p.m. on Monday.
It's not clear whether the two former executives will testify or refuse to answer questions by taking the Fifth Amendment.
WorldCom sued Sullivan on Friday, demanding he return $10 million in bonuses.
Current WorldCom CEO John Sidgmore and Chairman Bert Roberts are expected to answer questions Monday, along with Salomon Smith Barney telecom analyst Jack Grubman.
Grubman was particularly close to Ebbers and Sullivan. He kept the faith in WorldCom long after the market had given up on it and he advised Ebbers on mergers, acquisitions and capital formation.
Melvin Dick, a former partner at Andersen (WorldCom's outside auditor at the time), and David Myers, former controller for WorldCom, have also been called to testify at the hearing.
The Securities and Exchange Commission sued WorldCom after the company revealed on June 25 that it had improperly accounted for operating expenses as capital expenditures, thus overstating profits by $3.8 billion in the past five quarters.
The company, the nation's second-largest long-distance company, is also under investigation by the Justice Department.
Shares of WorldCom rose 3 cents to 25 cents in heavy trading on Friday. The company is fighting to maintain its listing on the Nasdaq.
Meanwhile, Senate Democrats are considering strengthening the accounting bill that was approved last month by the Senate Banking Committee. Amendments could be proposed to increase the penalties for securities fraud and tighten pension laws.
The House has approved a separate bill to reform corporate accounting and governance. The bill would create a new self-regulatory accounting oversight board. The House bill largely incorporates suggestions made by Bush in March.
A White House official told Reuters that Bush would meet with his top economic and political advisers on Monday ahead of his Tuesday speech on Wall Street.
"He purposely decided not to make any decisions on policy until then," the aide said. |
