The most essential element of a strong economy -- CONFIDENCE -- has been weakened as more cases of corporate and accounting malpractice have been revealed. The American people rightly demand greater security over their retirement accounts and investments. The United States Congress has answered their call and this week passed sweeping legislation to address this problem in a comprehensive manner.

Soon after the collapse of ENRON and Global Crossing, the Republican-led House wrote two bills that would increase corporate accountability and strengthen the security of retirement funds for American workers as well as increase the penalties for wrong-doers. The Corporate and Auditing Accountability, Responsibility and Transparency Act (HR 3763) that passed the House on April 24th, was designed to reform accounting oversight and to increase the availability of "real-time" financial information to investors and employees. The House went a step further by passing the Corporate Fraud Accountability Act. It included much stiffer penalties for accounting and auditing improprieties at publicly traded companies.

Finally, on July 15th the United States Senate took up this issue and passed a bi-partisan bill. Senate passage allowed for a conference committee between the House and Senate to hammer out the differences between the two versions.

The legislation includes provisions that would:

*Require companies to disclose ALL information, in a timely manner, to their employees and investors that could affect the companies financial well-being.

*Return funds to investors who have lost money in the markets as a result of corporate malfeasance. The companies would be accountable to their investors.

*Mandate up to twenty years of jail time for corporate criminals who defraud the public, including document shredding and obstruction of justice.

*Post criminal penalties for retaliation against whistleblowers up to ten years in jail, not just recourse for civil action.

*Create a new "securities fraud" crime. This provision would fine or imprison those who seek to defraud investors.

*Prevent the sale of securities by insiders during a "blackout" period (period of time which employees are unable to trade among investment options in their retirement plan).

*Create an independent Accounting Board that will support the needs of the SEC enforcement investigations

"Corporate criminals" should not be able to "steal" an employee's pension while continuing to live lavish lifestyles. The common-sense reforms that passed the House reflect a new focus on, investors having all the information they need to make wise investment choices, harsher criminal penalties for corporate crooks (up to 20 years in prison!), and victims getting their money back when executives are found guilty of fraud.