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Bush Touts Economy, Homeland Security in Illinois

Aired July 22, 2002 - 14:36   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: Moving now to the wake of the WorldCom bankruptcy, President Bush renewed his call for corporate responsibility today, but he also tried to calm jittery investors.

CNN's senior White House correspondent John King joins us now with the latest from there. How do we say it, John? He is quite the cheerleader today, amid many political problems.

JOHN KING, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, that is part of the president's job, and it is also a political imperative. Mr. Bush trying to maintain and hopefully, in his view, revive investor confidence and overall consumer confidence in the U.S. economy right now.

The president, just moments ago, arriving back here at the White House. He was in Illinois this morning. Now the reason for his trip, to focus on Homeland Security, but Mr. Bush receiving a key promise while he was on the road. The House Speaker, Dennis Hastert, traveled with Mr. Bush and promised him that the House would pass legislation, a compromise with the Senate on corporate corruption by the end of this week. That might prove overly optimistic, but the White House hoping that legislation is on the president's desk as soon as possible. Mr. Bush saying that is critical as part of his effort to restore confidence.

All of this comes, of course, in the wake of the WorldCom bankruptcy filing, that only adding to the political urgency here at the White House. Mr. Bush saying today he is most concerned for WorldCom employees, hoping that more of them do not now lose their jobs. But as you noted, Kyra, one of the president's jobs is to be cheerleader. Mr. Bush saying he believes better days for the economy and the market are just ahead.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I am not stock broker or a stock picker, but I do believe that the fundamentals for economic growth are real, and I believe Congress is going to get a bill that will help to take some of the uncertainty out of the market, and that bill is going to put some meaningful reforms in place. And then, the investor is going to pick value, make decisions on value. And from what I hear, corporate profits were improving, which means values will be available for those who invest in the market.

(END VIDEO CLIP)

KING: Now here is a sense of the urgency with which this issue is viewed here at the White House. The president's initial preference was the House legislation on corporate corruption, but a Senate bill passed by the vote of 97-0, it has tougher provisions in terms of an accounting board, a board that would oversee the accounting industry, tougher investigative powers, tougher penalties.

Mr. Bush's message now, we are told, through top aides to the House is, Do not fight over the details, have a day or two to have any arguments, but then make the compromises necessary, get a piece of legislation to the president by the end of this week. If possible, Mr. Bush hoping that a signing ceremony here will restore some confidence in the market, that A, any corrupt CEOs will go to jail, and that B, Washington is putting new rules on the accounting industry -- Kyra.

PHILLIPS: John, meanwhile, Treasury Secretary O'Neill incognito -- why?

KING: Well, Treasury Secretary O'Neill has been out and about here in Washington. There have been some calls from people who say Mr. Bush should replace his treasury secretary or should replace the Securities and Exchange Commission chairman, Harvey Pitt. Some saying that a turn over in those key positions might help inspire confidence here at the White House. Mr. Bush says, No way. He says he has full confidence in both men. He spoke out today on the issue of Secretary O'Neill. The president even joking that some trying to make a scapegoat of the secretary now, and that when the market goes back up, as the president predicts it will, he hopes those very same people give Secretary O'Neill some of the the credit. Mr. Bush is a loyal man. He believes turmoil in senior administration positions right now would do much more harm than good.

PHILLIPS: John King live at the White House. Thanks, John.

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