In the wake of Enron, Arthur Andersen, WorldCom, and other recent corporate bombshells, investor confidence in the integrity of our financial markets has been badly shaken.  Clearly, the miserable failure of these large corporations to police themselves cries out for reform.  The immediate effects have been devastating, as tens of thousands of jobs nationwide have been eliminated.  In addition, workers who held company stock in their 401(k) retirement accounts, as well as other shareholders, have lost tens of billions of dollars.  If ignored, corporate abuse will place the future retirement security and investments of countless more working families at risk.    

Congress cannot afford to wait for the media to report another tragic example of corporate deception, followed by more lost jobs and depleted pension funds.  We need to take action now to restore public trust in our financial markets.  Our economic recovery, and the future of millions of American families, depend on it.  We must do everything possible to ensure corporate accountability and protect employees, shareholders and consumers.  

Unfortunately, this looming crisis has been met by a lack of commitment from our Administration to seriously address this issue.  Yesterday, I welcomed the President’s attention to this matter during his visit to Wall Street.  But words, like stocks, lose their value when actions do not back them up.  It has now been more than six months since the President promised “a lot of government inquiry into Enron.” Since then, the Administration has fallen well short in exposing the corporate abuses that led to the Enron debacle, and the general climate of tolerance that has allowed similar abuses to be perpetuated around the country.  The Justice Department has also failed to indict a single Enron executive or individual Andersen accountant.  

In addition, the Administration’s budget has failed to provide the Securities and Exchange Commission (SEC) with the necessary resources to do its job effectively.  While the President’s proposal to add $100 million to the SEC’s budget would allow the agency to raise salaries and hire more enforcement officers, it still falls far short of the amount needed to solve the staffing and technology problems.  If we want to help prosecute corporate criminals, the Administration needs to fully fund the agency’s needs.  Without adequate funding and competitive salaries, the agency’s enforcement capabilities are severely compromised.    

The challenge for corporate oversight, however, should not solely fall on the shoulders of the federal government.  Corporate America must understand that there's a higher calling than the bottom line.  Capitalism must have character in order to work.  Companies are going to have to prove to investors that their reported financials resemble the real thing.  And they must demonstrate that they’re willing to change a business culture that has made corrupt behavior acceptable in too many boardrooms. 

Again, this problem demands our immediate consideration.  Those who want to take a hands-off, laissez-faire attitude toward this business crisis are inviting even more damage to our economy and our stock market.  We must hold those irresponsible few accountable for their actions now and enact safeguards to protect our markets, our workers, our consumers, and the reputations of companies who play by the rules.  Thank you.