WASHINGTON,
D.C. – Months after thousands of workers and investors lost jobs and hundreds
of millions of dollars, the Republican-controlled House of Representatives
finally approved tough corporate and auditor accountability legislation.
U.S.
Representative Jan Schakowsky (D-IL), said, “As a member of the Financial
Services Committee, I hate to say ‘I told you so.’ After voting unanimously
to oppose almost the same bill in April, House Republicans finally joined
Democrats in taking the first step to restore investor confidence by cleaning
up corporate accounting practices.”
“We
could have done this months ago, but now we are playing catch up because
of the GOP. Our work will not be finished until there is pension security,
stock options reforms, and government corporate watchdogs who are not tied
to Enron and other corporate thieves. Until he fires Harvey Pitt
and aggressively pursues these reforms, President Bush is standing in the
way of real protections for consumers, investors, and workers,” Schakowsky
added.
The
Accounting Industry Reform bill includes:
1.
A Strong Accounting Oversight & Auditor Independence
-
Establishes
public auditing regulatory board.
-
Ensures
that audits are independent.
-
Ends
stock analysts’ conflicts of interest.
-
Expands
SEC resources by authorizing $776 million for the SEC for FY 2003.
2.
Corporate Responsibility Standards
-
Holds
CEOs accountable for honest bookkeeping by requiring the CEO and CFO to
certify the financial statements.
-
Bars
officers and directors who violate the Securities and Exchange Act from
moving from company to company.
-
Prohibits
corporations from making insider loans to their executives.
-
Requires
timely reports when corporate insiders dump stock and Bans CEOs from selling
stock during blackouts.
-
Requires
real time disclosure of financial information.
3.
Imposes Tough Criminal Penalties for Corporate Wrongdoing
-
Criminal
penalties for securities fraud and for altering, destroying, or failing
to maintain documents.
-
Gives
shareholders adequate time to pursue securities fraud.
-
Compensates
victims of securities fraud.
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