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

To: Glenn Petersen who wrote (2514)	10/4/2002 7:58:29 PM
From: Raymond Duray	Read Replies (7) \| Respond to of 3602

NO JUSTICE, NO PEACE! Criminal accountants demand no adult supervision! This stinks: nytimes.com <SNIP> "Harvey L. Pitt, under pressure from Republicans and former clients in the accounting profession, is backing away from the choice he and other members of the Securities and Exchange Commission favored to lead the new federal agency that will oversee the industry. Industry executives and at least one prominent Republican lawmaker complained that the top choice, John H. Biggs, was too tough on the industry.........."

To: Glenn Petersen who wrote (2514)	10/30/2002 5:22:10 PM
From: Glenn Petersen	Respond to of 3602

SEC Proposes Pro Forma Rules Wednesday October 30, 3:20 pm ET By Kevin Drawbaugh biz.yahoo.com WASHINGTON (Reuters) - U.S. securities regulators, moving fast on new regulations ordered by Congress after a wave of business scandals, on Wednesday proposed rules to crack down on "pro forma" profit reports and off-balance sheet dealings. The Securities and Exchange Commission, voting 5-0 on all measures, also sent out for public comment a proposed rule to bar executives from selling company stock when employees are unable to do so because of pension plan "blackout periods." The SEC has postponed until Nov. 6 action on a proposed rule to require corporate lawyers to blow the whistle on securities law-breaking found on the job. SEC Chairman Harvey Pitt said the SEC staff needed more time to write the rule, which had been scheduled for consideration on Oct. 31. The SEC is working hard to implement provisions of the Sarbanes-Oxley Act approved in July by Congress in reaction to corporate and accounting scandals that began last fall with energy trader Enron Corp. (Other OTC:ENRNQ.PK - News) and continued with long-distance and Internet traffic carrier WorldCom Inc. (Other OTC:WCOEQ.PK - News). The pro forma reporting rule attacks the problem of companies reporting profit figures that ignore various costs, departing from nationally recognized standards known as the Generally Accepted Accounting Principles, or GAAP. Pro forma reporting became common in the late 1990s, especially among high-flying technology and telecommunications companies striving to burnish their bottom lines. Under the proposed rule, companies could no longer report financial results on a pro forma basis without explaining how they differed from GAAP-based results. In addition, pro forma results could not be misleading or be in error, the SEC said. The pro forma rule would also result in companies having to file press releases and announcements that contain "material" financial information to the SEC on the existing 8K form, exposing companies to greater legal liability on their public pronouncements. "This fills the gap between GAAP and non-GAAP," said SEC Commissioner Paul Atkins. Non-U.S. companies traded in the United States would be allowed limited exceptions to the pro forma rule, the SEC said. As it continued to process a raft of rule-making requirements called for under Sarbanes-Oxley, which was co-authored by Maryland Democratic Sen. Paul Sarbanes and Ohio Republican Rep. Michael Oxley, the SEC also moved along a measure to require corporations to disclose more information about off-balance-sheet dealings. Investigators have alleged that officers of bankrupt Enron -- once the seventh-largest U.S. firm -- used off-balance-sheet ventures to hide debt, pad profits and enrich themselves. The collapse of Houston-based Enron destroyed billions of dollars in investor equity and thousands of jobs, ushering in a stubborn crisis of confidence among U.S. investors. The off-balance-sheet rule would require companies to talk about any off-balance-sheet arrangements and the risks that they could pose in the "Management's Discussion and Analysis" section of filings made to the commission. Another rule originating from the Enron affair -- one on pension fund blackouts -- won preliminary SEC approval. Like the other measures, it will be out for public comment for several weeks, with final adoption expected in a few months. The rule would bar corporate executives from selling company stock during periods known as blackouts, when employees in company pension funds may not sell their shares. Enron executives allegedly unloaded thousands of shares during such a period that paralyzed Enron employees who could not sell.