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CNN Live Sunday

Pitt Says He Will Not Resign Despite Pressure From Some Lawmakers

Aired July 14, 2002 - 18:08   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.
CAROL LIN, CNN ANCHOR: The White House is going on the offensive next week against corporate wrongdoers, and the man heading up the Securities and Exchange Commission says he will not step down despite congressional pressure. CNN's Kelly Wallace is standing by at the White House with more on this. Hi, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hello, Carol. Well, President Bush travels to Alabama tomorrow to try to boost consumer confidence, and as you said, the man he placed at the helm of the SEC says he's staying put despite congressional pressure to step down.

(BEGIN VIDEOTAPE)

WALLACE (voice-over): The embattled head of the Securities and Exchange Commission rebuffs calls to resign, charging he's the right man to protect American investors.

HARVEY PITT, SEC CHAIRMAN: I swore to uphold the law and defend their interests and that's what I'm going to do.

WALLACE: But after a wave of corporate scandals rattled the markets, some Democrats and a prominent Republican argue that Pitt, a former securities industry lawyer is the wrong man to turn investor confidence around.

SEN. JOHN MCCAIN (R), ARIZONA: That confidence can only be restored by individuals whose records are completely untainted by any charge or allegation of conflict of interest.

WALLACE: Meantime, questions continue to dog the Bush administration about its ties to big business. Democrats say the president should tell the SEC to make public its file concerning his 1990 sale of Harken Energy stock when he sat on the company's board and just two months before the company announced a major loss. The SEC took no action against Mr. Bush. Pitt says as far as he's concerned, the matter is closed.

PITT: What I think is critical is to understand that the people, who want to raise a decade-old issue that was thoroughly investigated, are doing this for a political advantage.

WALLACE: Democrats also question whether the SEC under Pitt can pursue an impartial investigation of the accounting practices of oil services giant Halliburton and its former CEO Vice President Cheney. Pitt should stay out of any decision involving the vice president, says the House Democratic leader.

REP. DICK GEPHARDT (D-MO), MINORITY LEADER: Well, I think it would be best if he did recuse himself, and I think it because he was selected by a transition team that was headed by Dick Cheney.

(END VIDEOTAPE)

WALLACE: Democrats feel they now have an issue to use against a popular wartime president; the challenge for the president, trying to convince Americans that despite his connections to corporate America, he will stop corporate abuse -- Carol.

LIN: Kelly, is the president a bit alarmed that Republicans and Democrats seem to agree on this issue, seem to be actually joining forces on Capitol Hill to do something about all this themselves?

WALLACE: Well, the message from the White House is the president will support a corporate reform bill that comes to his desk. White House aides say the House passed a tough measure. The Senate, as we know, expected to pass something this week.

What we've seen the White House do is sort of step back. A lot of Republicans in the Senate and the House are really signing on to this bill. The message from the White House is, it will see what bill gets to the president's desk but, Carol, in this political environment, President Bush will sign legislation into law. The hope is he does it soon to boost investor confidence -- Carol.

LIN: That's right and, of course, those November elections are coming up, aren't they?

WALLACE: They certainly are and, again, both parties definitely positioning themselves, thinking voters could use this issue at the polls. Carol.

LIN: All right, thank you very much, Kelly Wallace live at the White House tonight.

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