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American Morning
What's the Fate of Harvey Pitt?
Aired November 04, 2002 - 09:18 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.
BILL HEMMER, CNN ANCHOR: Hey, you mentioned Harvey Pitt, the SEC chairman.
PAULA ZAHN, CNN ANCHOR: Yes.
HEMMER: Possibly on his way out. Who knows? That's the reports, anyway, we're getting.
Andy Serwer was tracking that.
What are you hearing, Andy, live from (UNINTELLIGIBLE) - good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Well, Bill, -- can you hear me -- Bill?
HEMMER: I sure can. Go ahead, pal.
SERWER: There you go. Listen, the situation does not look really great for Harvey Pitt. Actually, sort of continuing to deteriorate. Over the weekend it really looks like the Republicans and the White House tried to put them -- some distance between themselves and the embattled chairman of the Securities and Exchange Commission who is now facing four investigations, along with the chief accountant of the SEC, Robert Herdman, who is also under fire.
The White House saying, according to the "New York Times," that if Harvey Pitt did act improperly, then he would be dismissed. Also various Republican senators, such as Senator Shelby, Senator Graham and Representative Oxley either suggesting that he could be in hot water or not coming to his defense. Democratic Senator Sarbanes recently came out and said that it would be a good thing if he was out.
The real point here though, Bill, is that in terms of the intent of the Sarbanes-Oxley bill, which is to have transparency in all financial transactions, I think it's very clear that Mr. Pitt violated that spirit of that bill because there was not transparency when it came to nominating Mr. Webster.
HEMMER: Andy, tough to say. I know you mentioned the "New York Times." The "L.A. Times" is saying that the president is really close to a decision on this, won't happen until after Election Day, which perhaps is Wednesday or Thursday and possibly it's already a done deal.
SERWER: Yes, I think that's probably true. I mean the election is definitely giving Mr. Pitt some time. You know the White House is saying, through various spokespeople, that they are going to wait until the investigation is carried through.
Just want to mention here quickly, on the CNN Money Web site we have a poll, over 15,000 -- 16,000 voters...
HEMMER: Wow!
SERWER: ... now saying that Pitt should go as opposed to the others.
HEMMER: Well over 80 percent. OK, thank you -- Andy.
SERWER: Yes.
HEMMER: See you in about 10 minutes...
SERWER: See you later.
HEMMER: ... when the markets open there in New York.
SERWER: Yes.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired November 4, 2002 - 09:18 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Hey, you mentioned Harvey Pitt, the SEC chairman.
PAULA ZAHN, CNN ANCHOR: Yes.
HEMMER: Possibly on his way out. Who knows? That's the reports, anyway, we're getting.
Andy Serwer was tracking that.
What are you hearing, Andy, live from (UNINTELLIGIBLE) - good morning.
ANDY SERWER, "FORTUNE" MAGAZINE: Well, Bill, -- can you hear me -- Bill?
HEMMER: I sure can. Go ahead, pal.
SERWER: There you go. Listen, the situation does not look really great for Harvey Pitt. Actually, sort of continuing to deteriorate. Over the weekend it really looks like the Republicans and the White House tried to put them -- some distance between themselves and the embattled chairman of the Securities and Exchange Commission who is now facing four investigations, along with the chief accountant of the SEC, Robert Herdman, who is also under fire.
The White House saying, according to the "New York Times," that if Harvey Pitt did act improperly, then he would be dismissed. Also various Republican senators, such as Senator Shelby, Senator Graham and Representative Oxley either suggesting that he could be in hot water or not coming to his defense. Democratic Senator Sarbanes recently came out and said that it would be a good thing if he was out.
The real point here though, Bill, is that in terms of the intent of the Sarbanes-Oxley bill, which is to have transparency in all financial transactions, I think it's very clear that Mr. Pitt violated that spirit of that bill because there was not transparency when it came to nominating Mr. Webster.
HEMMER: Andy, tough to say. I know you mentioned the "New York Times." The "L.A. Times" is saying that the president is really close to a decision on this, won't happen until after Election Day, which perhaps is Wednesday or Thursday and possibly it's already a done deal.
SERWER: Yes, I think that's probably true. I mean the election is definitely giving Mr. Pitt some time. You know the White House is saying, through various spokespeople, that they are going to wait until the investigation is carried through.
Just want to mention here quickly, on the CNN Money Web site we have a poll, over 15,000 -- 16,000 voters...
HEMMER: Wow!
SERWER: ... now saying that Pitt should go as opposed to the others.
HEMMER: Well over 80 percent. OK, thank you -- Andy.
SERWER: Yes.
HEMMER: See you in about 10 minutes...
SERWER: See you later.
HEMMER: ... when the markets open there in New York.
SERWER: Yes.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
