THE PRESIDENT: Darn right. Bill, welcome, and Jane, thanks for
coming. It's my honor to welcome your family here to the Roosevelt
Room. And I'm proud to welcome Bill Donaldson as the Chairman of the
Securities and Exchange Commission.
Bill will be a strong leader of the SEC and a forceful advocate for
the interests of investors. He's the right man at the right time.
We're so honored you've agreed to accept this challenge, really
appreciate it.
Bill Donaldson spent a career preparing for this challenge. He has
served as a founder of a leading investment banking firm, the Chairman
of the New York Stock Exchange, the founding dean of the Yale School of
Management. He has set high standards throughout his entire career.
He will lead an active and energetic agency.
This agency has been working hard. They've last year filed a
record number of actions for financial reporting and disclosure
violations, sought the removal of more than 100 corporate officers and
directors on the grounds of misconduct and ordered corporations and
executives to return to investors hundreds of million dollars in
improper gains.
This administration is committed to the enforcement of the security
laws. We're committed to creating a climate of confidence in our
markets. There's no better person to help achieve that commitment than
Bill Donaldson. In the 2004 budget, I'm asking Congress to increase
SEC funding by 73 percent over the year 2002. We want to make sure the
SEC has the tools necessary to pursue its important mission.
This nation is increasingly a nation of stock holders, who invest
for their families and for their futures. Americans should be
confident in the information they use in order to make investment
decisions. All investors deserve to be treated fairly in the tax code,
as well. Investors should not be punished for saving and investing in
America's future.
Investors should not be -- should be rewarded for taking risk in
the marketplace. The tax code ought to treat these people fairly, and
so that's why I've proposed that Congress end the unfair and unwise
double taxation of dividends. This measure could improve corporate
governance in America, as well.
Companies across America attract investors in a number of ways.
One such way is to promise rampant growth; is to say, even though we
may not have cash flow, the future of our company is magnificent,
therefore, invest with us. Another way, of course, is to promise a
steady source of income in the form of dividends. Eliminating double
taxation dividends would give more companies a reason to distribute
their profits through direct cash to investors in the form of
dividends.
Dividends serving as a stronger foundation for long-term value,
companies that pay them will have less motive to artificially inflate
profits just to cause temporary increases in stocks. The law should
not discriminate against those companies that focus on stable,
long-term growth.
Eliminating the double taxation dividends is good for American
investors, it's good for American seniors, it's good for corporate
reform. I'm glad Bill Donaldson has agreed to take charge of an agency
with the vital purpose of showing the American investor that they're
-- rely upon the data on which they use to evaluate investments, to
really say to the markets loud and clear that we expect there to be
corporate integrity throughout our system.
This is a man who has not only set high standards, but has achieved
them. He's got a lot of talent and a lot of drive, a lot of wisdom and
a lot of integrity.
Mr. Chairman.
CHAIRMAN DONALDSON: Mr. President, thanks for this honor and the
opportunity to serve our country as Chairman of the Securities and
Exchange Commission. Over the last decade, we have seen unprecedented
growth in the number of Americans who invest. Ownership of stocks,
bonds and other investment vehicles is no longer limited to the wealthy
or to financial professionals. It is now an accessible option for all
hard working Americans as they seek to grow their retirement funds and
save for their children's education.
We have learned, though, that with such growth comes some severe
challenges. In recent years, as we all know, serious violations of our
security laws and regulations have severely shaken public confidence in
a corporate and financial world.
The mission of the SEC, and my duty as Chairman, is very clear. We
will hold accountable all those who have violated the public trust. We
will demand responsible corporate governance throughout the business
and financial world. We will strengthen our market structure, making
the markets more efficient, more transparent, and friendlier to all
investors, particularly small investors.
Strictly enforced and clearly understood laws, however, will not be
enough in my view. It is time that all those who manage and govern our
corporate and financial institutions show true leadership. As Chairman
of the SEC, I will call upon them individually and collectively to
create a new environment of integrity and accountability that goes well
beyond adherence to laws.
This must happen person by person, company by company. I believe
that such a dedication by all involved will offer a renewed sense of
confidence in the honest functioning and potential of our markets.
Mr. President, I pledge to you and to all American investors that
I, along with my new colleagues at the Securities and Exchange
Commission, will pursue this mission with vigor and absolutely
unwavering commitment. I look forward to the task and I'm eager to get
to work. Thank you.
THE PRESIDENT: Thank you, Mr. Chairman. Good job.
CHAIRMAN DONALDSON: Thanks.
THE PRESIDENT: Thank you. Ron, I'll answer a couple of questions
here.
Q Thank you, Mr. President. What do you make of the fact that
millions of people across the globe have taken to the streets to
protest your approach to Iraq? And if you decide to go to war, how do
you wage a campaign in the face of such stiff opposition?
THE PRESIDENT: Two points, one is that democracy is a beautiful
thing, and that people are allowed to express their opinion. I welcome
people's right to say what they believe. Secondly, evidently some of
the world don't view Saddam Hussein as a risk to peace. I respectfully
disagree. Saddam Hussein has gassed his own people. Saddam Hussein
has got weapons of mass destruction. Saddam Hussein has made --
defied the United Nations. Saddam Hussein is providing links to
terrorists. Saddam Hussein is a threat to America. And we will deal
with him.
You know, I -- war is my last choice. But the risk of doing
nothing is even a worst option as far as I'm concerned. I owe it to
the American people to secure this country. I will do so.
Q Have you decided how to do so yet?
THE PRESIDENT: Pardon me?
Q Have you decided how you're going to deal with him yet?
THE PRESIDENT: Hopefully, Saddam Hussein will disarm.
Q Mr. President --
THE PRESIDENT: If he chooses not to disarm, as I have been saying
for a long time, Ron, we'll lead a coalition of the willing to disarm
him.
Steve.
Q Should a second resolution on Iraq include a deadline? And
how are you going to get around the opposition from France, Russia and
China?
THE PRESIDENT: We're working with our friends. As I said, a
second resolution would be useful. We don't need a second resolution.
It's clear this guy could even care less about the first resolution.
He's in total defiance of 1441. But we want to work with our friends
and allies to see if we can get a second resolution. That's what we're
doing right now.
Q With a deadline?
THE PRESIDENT: We're working with our friends and allies right now
to -- how best to get a resolution out of the United Nations. As I
say, it would be helpful to get one out. It's not necessary, as far as
I'm concerned.
Q Mr. President, are you any closer to an aid package for
Turkey, particularly given the continued problems with NATO regarding
any defense of Turkey?
THE PRESIDENT: Well, first of all, as you know NATO did -- did
express their desire to help Turkey. And I appreciate the NATO
allies. I also appreciate the EU statement yesterday that Saddam
Hussein needs to fully disarm. I thought those were positive
developments. We're working closely with the Turks. And, you know, we
got great respect for the Turkish government. They've got -- had no
better friend than the American government. And hopefully we can come
up with an agreement that's satisfactory to both parties. We're still
working it.
Yes, Bill?
Q Mr. President, would it be easier to win the peace after the
war in Iraq -- if there is one -- if you had the allies with you
going in? And what about the idea of an ultimatum for Saddam, another
last chance?
THE PRESIDENT: Well, you mean another, another, another last
chance? He knows my feelings. And that is he needs to disarm --
completely, totally disarm. Listen, he's a fellow that likes to buy
time by -- through deception and delay. He believes time is on his
side. After all, he was quoted in an Egyptian newspaper saying all
he's got to do is stall and defy the world and, you know, coalitions
will fall apart. I am determined to keep the peace. I'm determined to
hold this man to account.
And there's two reasons why. One, we have the obligation, I have
the obligation, this administration has the obligation to do everything
we can to protect the American people. Secondly, I think it's very
important for the United Nations to be useful, as we go out into the
future. And there's nothing less useful than issuing a resolution and
then not upholding the resolution.
I mean, after all, I want to remind the people that this man has
been in defiance of resolution after resolution after resolution after
resolution, for 12 long years. And I think unless the United Nations
shows some backbone and courage, it will render the -- it could
render the Security Council irrelevant. And that's a danger, in
dealing with the new threats that the civilized world faces. We face
terrorism, we face the idea of people having nuclear arms, we face
people who have got weapons of mass destruction. We face these deadly
terrorist networks teaming up with countries with weapons of mass
destruction who could attack any time.
Those are the threats of the 21st century. The best way to deal
with those threats is to have international organizations which are
effective. And if the United Nations can't enforce its own
resolutions -- a resolution which, by the way, has been around for 12
years -- it says something about its utility as we head into the
future.
I want the United Nations to be effective body. I think it's in
our country's interest that it be effective. And we'll see whether or
not it's got the capacity to be effective.
Anne.
Q Given the size of the protests in England over the weekend,
do you have any concerns that Tony Blair might pay a serious political
price for supporting you on Iraq?
THE PRESIDENT: I think any time somebody shows courage, when it
comes to peace, that the people will eventually understand that.
First of all, you know, size of protest, it's like deciding, well,
I'm going to decide policy based upon a focus group. The role of a
leader is to decide policy based upon the security -- in this case,
the security of the people. Tony Blair understands that Saddam Hussein
is a risk. Tony Blair sees that, you know, a weakened United Nations
is not good for world peace. And he is a courageous leader and I'm
proud to call him friend.
Another courageous leader is coming to the ranch this weekend, Jose
Maria Aznar. I'm looking forward to having a good meeting with him.
These are men of vision. They see the task at hand. And I'm proud to
call them allies. We'll work together for the sake of peace.