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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Baldur Fjvlnisson who wrote (4016)	7/7/2002 3:30:49 PM
From: Mephisto	Read Replies (1) \| Respond to of 5185

The elimination of non-expensed stock option issuance is no longer a top priority for the SEC In fact, current SEC Chairman " Harvey Pitt is against current legislation that would see corporate America expense what is clearly, but perhaps not quantifiably, an expense (stock options). Pitt says, "I would be exceedingly reluctant to reopen this issue. We have so many other things to do. I don't think the non-expensing of options caused what happened with Enron." When considering that Enron wrongfully manipulated its financial numbers and that stock options are indeed an expense that is not recorded within the income statement, it would seem that non-expensing options is exactly the type of thing that caused Enron." Excerpt from, "The Pitt Bull With No Bite Or why Harvey Pitt is unable to prevent the next Enron" By Brady Willett fallstreet.com >>>>>>>>>>>>>>>>>> Maybe, Pitt will lose his job after all!

To: Baldur Fjvlnisson who wrote (4016)	7/8/2002 9:38:55 AM
From: Mephisto	Respond to of 5185

Mccain: SEC's Pitt should resign Posted on Mon, Jul. 08, 2002 ohio.com Reuters WASHINGTON - - Sen. John McCain on Monday joined Senate Democratic leader Thomas Daschle in calling for the resignation of Securities and Exchange Commission Chairman Harvey Pitt, accusing him of an inadequate response to the accounting scandals plaguing corporate America. "While Mr. Pitt may be a fine man, he has appeared slow and tepid in addressing accounting abuses, and concerns remain that he has not distanced himself enough from his former clients," McCain, an Arizona Republican, wrote in The New York Times. On Sunday, Daschle, the majority leader from South Dakota, accused Pitt of having a "cozy, permissive relationship" with U.S. corporations -- themes echoed by McCain -- and called for his replacement. Pitt, a former Wall Street lawyer with prominent clients including major accounting firms, became head of the SEC last August. McCain, who ran against George W. Bush in the 2000 Republican presidential primary campaign, criticized Pitt for having to abstain from numerous SEC votes during his first 10 months as chairman because many of the actions involved former clients. "To address corporate misconduct, he seems to prefer industry self-policing to necessary lawmaking," McCain wrote in an op-ed piece. "Government's demands for corporate accountability are only credible if government executives are held accountable as well." Daschle faulted Pitt for being too close to those his agency regulates, including meeting with accountants he used to represent before issuing regulations. "I have to say that at this point, we could do a lot better than Harvey Pitt in that position today," Daschle said on CBS' "Face the Nation." "That cozy permissive relationship has to end and he in large measure has orchestrated that over the last 18 months." In the wake of WorldCom Inc.'s announcement of a $3.85 billion accounting error after last year's spectacular collapse of Enron Corp. and other corporate debacles, Daschle said greater regulation was needed and Pitt instead was overseeing "a kinder and gentler SEC, just the opposite of what we should have had." In Kennebunkport, Maine, where President Bush was on a long Fourth of July weekend, White House spokeswoman Claire Buchan said on Sunday Bush had total confidence in Pitt and rejected Daschle's charges. Bush is preparing to give a speech on corporate misconduct in an address on Wall Street on Tuesday. Aides said the president would recommend tougher penalties for executives found guilty of criminal wrongdoing. ohio.com © 2001 ohio and wire service sources. All Rights Reserved. ohio.com