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CNN Live Today

President Bush Signs into Law Sweeping Corporate Reform Bill

Aired July 30, 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: As the executives testified on the Hill, President Bush signed into law a sweeping corporate reform bill that he says will expose and punish crooked CEOs.

CNN White House correspondent Suzanne Malveaux joins us now live with those details.

Hi, Suzanne.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Hi, it's all a part of the administration's effort to win back the confidence of the American people, the investors to get back into the stock market. The strategy of the White House has really been very consistent. It's been twofold, first of all, to show they're getting tough, cracking down on corporate fraud through the legislation, and secondly, talking up the positive of the economy.

Now earlier this morning, in an elaborate ceremony in the East Room of the White House, the president signed this legislation, the Sarbanes-Oxley act of 2002. At the ceremony, you see Democrats and Republican lawmakers, as well as members of the cabinet and members of his corporate fraud task force, all of this to signal kind of a bipartisan unity for this piece of legislation.

But quite frankly, it is a bill that went much further than the White House would have liked. It was written by Senator Paul Sarbanes, a Democrat, and ultimately, the White House, as well as Republicans, thought it wise to sign on to this because of the increasing criticism that has -- that has occurred because of the stock market, the decline, and also because of the corruption.

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GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This new laws sends a very clear message that all concerned must heed. This law says to every dishonest corporate leader, you will be exposed and punished. The era of low standards and false profits is over. No board room in America is above or beyond the law.

(END VIDEO CLIP)

MALVEAUX: Now some of those key provisions include oversight board for an accounting industry, up to 25 years in prison for security fraud, for those who are convicted. CEOs and CFOs, chief financial officers, have to certify their financial statements. Now you may notice it was really lightning speed in which this bill was passed. That is basically because the administration, both Congress and the White House, under a great deal of pressure to go ahead and move forward these revelations of corporate abuse , as well as these triple-digit declines in the stock market, really put a lot of pressure on both of them to come forward -- Kathleen.

PHILLIPS: Suzanne Malveaux, live from the White House, thank you so much.

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