For Immediate Release
Office of the Media Affairs
June 26, 2002
President Promises Worldcom Investigation
Corporate Responsibility Portal Page Policy In Focus: Corporate Responsibility
Excerpts from President Bush and Prime Minister Blair press release
President Bush: I am deeply concerned about some of the accounting
practices that take
place in America. Today the revelations that Worldcom has
misaccounted
$3.4 billion is outrageous. We will fully investigate and hold
people
accountable for misleading not only shareholders, but employees, as
well.
There is a need for a renewed corporate responsibility in
America. Those entrusted with shareholders' money must -- must --
strive for the highest of high standards. The good news is most
corporate leaders in America are good, honest, open people who care
deeply about shareholders and employees. And our economy is
strong.
When we find egregious practices, such as the one revealed today,
we'll go after them. And need to.
Question from reporter: Do you believe that there is a crisis in
confidence among the American people, vis a vis the economy, and
particularly the stock market in view of yet another failure of an
American corporation?
THE PRESIDENT: Let me answer the second question first. The market
isn't as strong as it should be for three reasons. One, corporate
profits. There's no question some sectors of our economy are recovering
from the slow-down, but they'll recover.
Secondly, there are still some concerns as to whether or not the
United States and our friends and allies will be able to prevent
further terrorist attack. In other words, there's some concerns about
the capacity of the enemy to hit us again. And I want to assure
American investors and our friends that we're doing everything we
possibly can -- the government is on full alert, attempting to run down
every hint and every lead.
And, thirdly, there are some concerns about the validity of the
balance sheets of corporate America -- and I can understand why. We've
had too many cases of people abusing their responsibilities. And people
just need to know that the SEC is on it, our government is on it --
after all, Arthur Andersen has been prosecuted. We will pursue within
the full -- within our laws those who are irresponsible.
Having said that, I do believe the economy is strong and I know
that most people that run businesses in America are aboveboard, honest,
care deeply about their employees and their shareholders.
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