[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H. Con. Res. 434 Introduced in House (IH)]







107th CONGRESS
  2d Session
H. CON. RES. 434

Expressing the sense of the Congress regarding the economic collapse of 
                             WorldCom Inc.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2002

  Mr. Shows submitted the following concurrent resolution; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                         CONCURRENT RESOLUTION


 
Expressing the sense of the Congress regarding the economic collapse of 
                             WorldCom Inc.

Whereas executives at WorldCom Inc. hid $3,850,000,000 in expenses by improperly 
        transferring certain costs to capital accounts in order to falsely 
        portray WorldCom Inc. as a profitable business in 2001 and the first 
        quarter of 2002;
Whereas the economic collapse of WorldCom Inc. will cause the layoff of 
        thousands of WorldCom employees;
Whereas WorldCom is the second largest long distance provider in the United 
        States, with stock that was valued at $64 per share in June 1999;
Whereas the collapse of WorldCom and the resulting decline in its stock price, 
        valued at $0.21 per share on June 26, 2002, has hurt thousands of 
        investors throughout the United States who were misled by WorldCom's 
        inaccurate financial disclosures;
Whereas Standard & Poor's 500 stock index lowered WorldCom's long-term corporate 
        credit rating to junk status on May 10, 2002, and dropped WorldCom from 
        its index on May 14, 2002;
Whereas the combined downfall of Enron, WorldCom, telecommunications firm Global 
        Crossing, and other major corporations has seriously affected consumer 
        confidence in the telecommunications industry and in the integrity of 
        corporate transactions and reporting;
Whereas the United States Securities and Exchange Commission has already filed 
        civil fraud charges against WorldCom; and
Whereas the Congress has a responsibility to protect investors, workers, and 
        innocent victims, including children and families, from fraudulent 
        investment practices, and to ensure the independence of financial 
        analysts and auditors: Now, therefore, be it
    Resolved by the House of Representatives (the Senate concurring), 
That it is the sense of the Congress that--
            (1) a timely and thorough investigation should be 
        undertaken into the alleged wrongdoings related to the economic 
        collapse of WorldCom Inc.; and
            (2) any person, including any auditor, financial analyst, 
        WorldCom executive, accounting company, or other company or 
        partnership, who is found to have illegally withheld 
        information or disseminated misleading information regarding 
        WorldCom's financial condition should be held accountable to 
        the fullest extent of the law.
                                 <all>