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Politics : WHO IS RUNNING FOR PRESIDENT IN 2004 -- Ignore unavailable to you. Want to Upgrade?

To: calgal who wrote (855)	1/11/2003 5:50:08 PM
From: calgal	Read Replies (1) \| Respond to of 10965

Bush Promises Boost in SEC Budget Sat Jan 11, 1:30 PM ET URL:http://story.news.yahoo.com/news?tmpl=story2&cid=568&ncid=749&e=1&u=/nm/20030111/bs_nm/economy_bush_dc By Adam Entous WASHINGTON (Reuters) - President Bush (news - web sites) said on Saturday he would propose the largest-ever increase in the Securities and Exchange Commission (news - web sites)'s budget, promising to restore investor confidence by cracking down on corporate crime and boosting the economy with tax cuts. Related Quotes DJIA NASDAQ ^SPC 8784.89 1447.72 927.55 +8.71 +9.26 -0.02 delayed 20 mins - disclaimer Quote Data provided by Reuters Our Tech Section is growing! Check headlines for: Communications, Internet, Software and more... Technology News The 2004 budget proposal, which calls for nearly doubling SEC funding to $842 million over fiscal 2002 levels, could help insulate Bush from Democratic charges that he was soft on corporate fraud after a wave of boardroom scandals, starting with the collapse in fall 2001 of energy trader Enron Corp. The Republican president and some of his advisers had close ties to Enron and other companies under scrutiny, but the issue slipped from the headlines as the White House -- and the nation -- focused on a possible war with Iraq and homeland security in the run-up to the November congressional elections. "The SEC and the Justice Department (news - web sites) are the referees of corporate conduct. Under my budget, they will have every resource they need to enforce the laws that punish fraud and protect investors," Bush said in his weekly radio address. While key Democrats welcomed the commitment, they questioned why Bush would wait until the next fiscal year to provide the funding. "Better late than never. But why late? He's trying to finesse it with rhetoric rather than really doing the job," said Rep. Barney Frank of Massachusetts, the ranking Democrat on the House Financial Services Committee. To further shore up investor confidence, Bush pressed Congress to approve his 10-year, $674 billion economic package, which would eliminate taxes on most corporate dividends, accelerate across-the-board cuts in tax rates and offer more relief to married couples and families with children. Democrats and some Republicans have criticized the plan as a windfall for the wealthy that would provide little immediate help to the economy -- and cash-strapped states -- while swelling the federal budget deficit. "We cannot have a full economic recovery -- we cannot ensure the security of this country -- while the states are in the midst of the worst fiscal crisis in half a century," New Mexico Gov. Bill Richardson said in the Democrats' weekly radio address. 73 PERCENT BOOST FOR SEC Bush said his fiscal 2004 budget for the SEC would be 73 percent higher than 2002 levels and the largest increase in the history of the market-regulating agency. (Story continues after advertisement) ADVERTISEMENT If approved by Congress, the money would enable the SEC to hire hundreds of new accountants, lawyers and examiners to police the nation's publicly traded corporations, investment company portfolios, brokerage firms and financial advisers. For months, congressional Democrats have blasted Bush for resisting the SEC budget hike called for in July by the sweeping Sarbanes-Oxley Act, the biggest securities law overhaul since the 1930s. House Appropriations subcommittee chairman Rep. Frank Wolf of Virginia has introduced a spending bill that would provide the SEC with the $776 million for fiscal 2003 authorized by Sarbanes-Oxley. "The administration skipped the earlier innings against corporate wrongdoing, but the president is gradually coming to realize that strong enforcement is important to confidence in our markets," said Sen. Patrick Leahy of Vermont, the ranking Democrat on the Senate Judiciary Committee (news - web sites). In addition to increasing SEC funding, Bush's budget, scheduled for release next month, would include an extra $25 million for the Department of Justice (news - web sites) to expand investigations of corporate fraud. This money will allow the department to create 118 new positions in the FBI (news - web sites), including 56 agents. Another 94 positions would be added at U.S. attorneys' offices to prosecute criminal acts of corporate fraud. The White House said Bush would also request a 10 percent increase in funding for the Labor Department (news - web sites)'s Employee Benefits Security Administration to recover some $500 million in pension plan assets and increase safeguards for workers' retirement savings after a string of corporate abuses. "Our country has made great progress in restoring investor confidence, and putting the recession behind us. We cannot be satisfied, however, until every corporate wrongdoer is held to account, and every part of our economy is strong, and every person who wants to work can find a job," Bush said.