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American Morning

Critics Say Bush's Tough Message to Big Business Short on Substance

Aired July 10, 2002 - 07:02   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.
PAULA ZAHN, CNN ANCHOR: "Up Front" this morning, double the maximum jail time for corporate crooks, a so-called financial crimes SWAT team, and a public tongue lashing to boot. After all of that, critics say President Bush's tough message to big business yesterday was short on substance and enforcement.

Suzanne Malveaux joins us from the White House with more -- good morning, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Good morning, Paula. Well, the president's aides are concerned that there may have been too much of a buildup, too high expectations around what the president's speech would accomplish. The Dow Jones fell, there were some on Wall Street that yawned, and Democrats had a field day. But the White House this morning defending the president's proposals, saying it was broad, two-fold, calling for greater accountability for CEOs, and also a greater ability for the government to regulate and enforce laws that are already on the books.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It is time to reaffirm the basic principles and rules that make capitalism work, truthful books and honest people and well-enforced laws against fraud and corruption. All investment is an act of faith, and faith is earned by integrity. In the long run, there is no capitalism without conscience; there is no wealth without character.

(END VIDEO CLIP)

MALVEAUX: The plan specifically called for strengthening the SEC and the creation of a financial crimes SWAT team, doubling the penalty for financial fraud and calling on CEOs to personally vouch for their annual report. But Democrats criticized the president, saying that this did not go far enough, specifically not calling for new measures, new penalties against corporate fraud.

(BEGIN VIDEO CLIP)

SEN. JON CORZINE (D), NEW JERSEY: Nothing in detail is talked about. Nothing was talked about with regard to stock options or Bermuda corporations, things that are real with regard to the substance of what is undermining the confidence we have in our economy today. And to put $100 million into the SEC budget is about as tepid a response on enforcement as anyone could imagine.

(END VIDEO CLIP)

MALVEAUX: Democrats and Republicans and are both offering competing get-tough measures. Now, it is up to the president to sign what comes across his desk as soon as possible before the Congress goes into recess in August -- Paula.

ZAHN: A lot of work to get done between now and then. Suzanne, thanks so much for the update -- appreciate it. And welcome to our team, by the way. I think it's your first appearance you have made on AMERICAN MORNING.

MALVEAUX: Thank you.

ZAHN: You have been at CNN for a while...

MALVEAUX: Thank you -- great to be here.

ZAHN: ... but this is the first chance we have had to check in with you -- thank you.

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