[Congressional Record Volume 148, Number 92 (Wednesday, July 10, 2002)]
[House]
[Page H4477]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          OMNIBUS CORPORATE REFORM AND RESTORATION ACT OF 2002

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Texas (Ms. Jackson-Lee) is recognized for 5 minutes.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, we have heard over the last 48 
hours a pronouncement of a crisis in corporate America; that many 
employees and pensioners and other people have been impacted negatively 
by the crumbling confidence in corporate America and the procedures by 
which we invest in that system which have gone on for a very long time.
  Let me simply recount a story, Mr. Speaker, that probably has been 
heard over and over again, but it bears telling again, and that is the 
story of many of my constituents and those that live in Houston. For a 
moment, we thought that the failings were indicative of a particular 
industry, the energy industry. We felt that something had gone awry 
with one of the companies that had been one of our most civic-minded 
corporate citizens. But just over a weekend we were able to see what 
happens when things go awry and the integrity of the process of running 
a large business is not adhered to.
  Within a weekend's time, after the continued undermining and 
crumbling of Enron Corporation, $105 million was given as retention 
bonuses to many of the executives. That probably happened on a Friday. 
On Sunday, bankruptcy occurred. On Monday, 4,500 employees were laid 
off, and investors around the country were finding out that they had 
lost millions and millions of dollars due to the largest bankruptcy 
filing in this Nation.
  So it is more than a crisis of 48 hours; it is more than a crisis 
that has been acknowledged by this administration. It is an ongoing 
crisis. And I personally have said that the inertia and inaction of 
this Congress must stop and this Congress must move forward and ensure 
that we respond to the American people. My colleague, the gentleman 
from New York (Mr. LaFalce), is attempting to do that, along with the 
distinguished gentleman from the other body, Mr. Sarbanes, with a bill 
that really attacks the problem, particularly as it relates to the 
issues of accounting and consulting. This is so key.
  But I want to say that the Omnibus Corporate Reform and Restoration 
Act of 2002 is a bill that is crucial. This is a bill that I hope will 
bring some attention and that will respond to all of the issues that we 
are addressing. It concerns the oversight of boards of directors. It 
concerns the idea of investor integrity. It concerns the protecting of 
employee stock options and pension plans.
  This bill may not pass tomorrow or next week. This bill has no pride 
of authorship, because I believe that the key element for this Congress 
is to act. It is a bill I intend to file, the Omnibus Corporate Reform 
and Restoration Act of 2002.

                              {time}  1730

  Mr. Speaker, the $4 billion that was lost by WorldCom is an 
indication that this is not industry-specific, this is systemwide. This 
is attacking all of us more than where it hurts because certainly money 
lost hurts, but it has to do with the integrity of our system of 
governance and economy, the capitalistic system that we have attempted 
to promote throughout the world, that if you work hard, you have an 
opportunity in this Nation to succeed.
  We encourage developing nations to look at our system of democracy 
and the economy. We provide incentives for particularly small 
businesses around the world, but nothing serves us in a worse way than 
to continue to have a system that does not have integrity and trust.
  There is a crisis. It did not just occur in the last 48 hours. It has 
been going on for a while. It is a crisis when the stock of WorldCom 
sold for $64 just 3 weeks ago and 7 cents in the last couple of days, 
and now in my terminology, it has been disenrolled off of NASDAQ. It is 
a crisis when we can construct SPEs in order to hide funds, and those 
are separate companies within where executives can in fact own a part 
of those companies within another company or the larger company and 
siphon off funds to the extent that boards of directors do not know 
what is going on.
  Mr. Speaker, I simply say that in the course of having the 
responsibility of responding to an ongoing crisis, I am sad to say we 
have waited too long. But I am proud that we are speaking now in a 
voice that will be heard by the Democratic leadership, and I simply say 
that it is important that we all look to stand ready to force an issue 
that addresses the needs of American people, and the sadness of losing 
your home, of not being able to pay tuition, losing your pension, and 
trying to avoid going under. I do not think we can do any less other 
than trying to respond to corporate infractions, the corporate 
undermining of the economic system of this Nation.

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