Return to Transcripts main page
CNN Live Today
President Bush to Address Corporate Failings
Aired July 08, 2002 - 13:09 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: The rash of corporate shenanigans is prompting President Bush to address the subject tomorrow. Mr. Bush began as a businessman himself, and a lot of people are very keen to hear what he has to say.
CNN's John King at the White House with more on that -- John.
JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: And, Kyra, some view that business experience as an asset. Some political critics, most notably here in Washington, the Democrats, view the president's political -- business experience -- excuse me -- as a liability now.
Mr. Bush due back at the White House in a little bit. He is making his way back from a long holiday weekend in Kennebunkport, Maine. He will meet with his advisers here this afternoon, we are told, to put the finishing touches on that speech.
This morning, the president having a leisurely but very quick round of golf with his father, the former president. During that round of golf in Kennebunkport, Maine, reporters tried to ask the president about the big speech tomorrow, but didn't get very far when they asked the president to share the details.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Mr. President, is your speech ready for tomorrow? Or will you have to consult with advisers later?
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I'm focused on 18 holes of golf.
UNIDENTIFIED FEMALE: Will you talk to us after the...
(CROSSTALK)
BUSH: Probably not. It's not that I don't like you.
UNIDENTIFIED MALE: Vacation (UNINTELLIGIBLE) should relax by the sea.
BUSH: It's in pretty good shape, I'll give you a hint.
(END VIDEO CLIP) KING: We do know some of the details. We know the president will propose that in a case where a CEO is found to have deliberately misled in a public filing about a company's financial report that that CEO could go to jail. That is a new step. Right now, there are only civil penalties in such cases. The president will propose criminal penalties, including the possibility of jail time.
On the issue you were just discussing, we also know the president will propose that if a company CEO or another senior official received a big bonus and then later is found to be part of any financial misconduct, that the government could go back and recover that bonus money, if you will, and try to get that money back to any investors who might have suffered because of it.
The president will deliver his speech up on Wall Street. Some Democrats already saying the president needs to go even further. Democrats say there should be a new, independent board to police the accounting industry. As it now stands, the administration's position is that there should be -- within the industry, there should be a self-regulating board to oversee the industry.
So the debate continues. A major policy question here in Washington, and because of the president's business experience, because of the vice president's business experience, some Democrats believe there may be some political gain to be made here by saying this president, this administration are too cozy with the very corporate America they are now trying to lecture, if you will, in the wake of these accounting scandals -- Kyra.
PHILLIPS: John, what more can you tell us about this possible board to oversee the industry? Any details been released? I mean, that gives investors, I would say, a peace of mind in many ways.
KING: Well, that is one of the president's key goals, make no mistake about it. Beyond the according scandals, there is investor confidence. The president had supported a piece of legislation already passed by the House. That includes letting the accounting industry, in conjunction with the SEC, but largely within the industry set up a self-regulating board, if you will, to look at the industry, to discuss whether there should be changes in company practices, like whether an accounting firm can also be a consultant to a company that it checks the financial statements of.
What the Democrats, led by the Banking Committee chairman, Senator Paul Sarbanes of Maryland, are saying is that no, that leaves the fox in charge of the hen house, if you will. And that there should be a new five-member or so independent board that was appointed by the Securities and Exchange Commission, and that the independent board should oversee the industry.
That is one of the breakpoints right now in the policy debate over what to do in the wake of WorldCom, Enron and other accounting scandals. Whether the president will change his mind on that point, we simply don't know yet. All indications are that he will stick with his current position. But again, he has meetings here this afternoon with his top advisers. That is one of the key debating points. PHILLIPS: Senior White House correspondent John King. Thanks, John.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
