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White House Tells Nation's Top Corporate Watchdog He Won't be Getting Cabinet Seat

Aired July 24, 2002 - 14:09   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 White House is rather publicly telling the nation's top corporate watchdog he won't be getting a seat in the cabinet any time soon. Meanwhile, a cabinet secretary who doesn't like to sit still is being asked to give his passport a rest.

CNN's Suzanne Malveaux joins us with some office work for Paul O'Neill and status quo for the SEC.

Suzanne, let's start with Harvey Pitt.

SUZANNE MALVEAUX, CNN CORRESPONDENT: Hello, Kyra.

That's right, the White House is really calling this all a big distraction. We just heard from White House spokesman Ari Fleischer. He was saying that the president's focus on the corporate reform legislation that is moving quickly through Congress, but, of course, this really puts the White House in, again, in a position of defending SEC chair Harvey Pitt. He's been under a great deal of criticism, calls for resignation from Democrats, and some Republicans as well. But Ari Fleischer today saying that they stand by their man.

But at the same time when he was asked whether or not there was any kind of consideration that this agency would be elevated to a cabinet-level position. He said -- and I'm quoting -- "They have the status that they need to enforce the law." So they're not even really entertaining the idea, but they say it's just a distraction; they want to move forward. But again, more criticism against Pitt.

PHILLIPS: All right, Suzanne. Now what about Treasury Secretary Paul O'Neill. Why is he canceling, or postponing his trip, rather?

MALVEAUX: I spoke with his spokesperson earlier this morning. He said that of course there is a lot on his plate, but also the White House had asked him specifically to stay. He had trip to Latin America next week. It will be postponed for another week. That is because, as you know, there are a number of bills that are moving quickly through the Congress. They hope to actually get those to the president's desk to be signed fairly soon, at least before Congress recesses in August -- homeland security, corporate responsibilities, trade promotion authority, all of these items.

And you do know that O'Neill in the past has come under criticism himself for taking these overseas trips, for not really talking very much about the economy and the stock market during these dire times. This is really an effort for him to be here while this legislation is moving forward.

PHILLIPS: Suzanne Malveaux, live from the White House. Thanks, Suzanne.

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