[Congressional Record Volume 148, Number 96 (Tuesday, July 16, 2002)]
[Senate]
[Page S6861]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                           ACCOUNTING REFORM

  Mr. NELSON of Nebraska. Mr. President, I rise to express my support 
for the accounting reform bill and the underlying goals of the 
legislation. I wholeheartedly endorse the principles expressed in this 
bill to root out corruption in our accounting industry.
  The need for this bill is enormous. The accounting scandals that have 
rocked this Nation over the past nine months have shaken Americans' 
faith in our free market system. We simply cannot allow this attack at 
the bedrock of our economic system to pass unanswered. Those who have 
propagated corporate greed, those who have engaged in unethical 
business practices, and those who have willingly and knowingly turned a 
blind eye must be punished.
  Moreover, we need to assure all Americans that they can and should 
have faith in American business. The loss of confidence caused by a 
lack of accountability has caused nearly as much damage as the economic 
impact of these surfacing scandals.
  The perpetrators of these scandals are certainly in the forefront of 
our minds as we have debated this legislation. But, in the end, this 
bill is not about those who have violated the trusts of their employees 
and shareholders. This bill is really about those employees and 
shareholders who have been violated, it's about average Americans who 
are now being penalized and disadvantaged because of the corporate 
greed of a privileged few. And it is about those honest accountants 
whose integrity and profession have been scarred by a few dishonest 
individuals.
  I need look no further than my home State of Nebraska to see the 
human aspect of these fraudulent accounting practices. Before it merged 
with Houston Natural Gas in 1985, InterNorth, the forerunner of Enron, 
was based in Omaha. In the year following the merger, the newly named 
Enron relocated to Houston, but it still had roots in Nebraska as well 
as thousands of InterNorth retirees.
  Those retirees and employees have seen their lives turned upside down 
by the accounting trickery perpetrated by those at the top. Many have 
seen their retirement accounts evaporate while others have lost their 
jobs.
  Not only has their trust been violated by the actions of Enron 
executives, they also have to witness the apparent disinterest of the 
accountants who were obliged to ensure honesty and integrity in 
bookkeeping. With the livelihoods and savings of tens of thousands on 
the line, a handful of accountants failed to do their duty.
  When I was governor of Nebraska, we had a period of upswing in the 
distribution of dangerous drugs. In response, we stiffened penalties in 
our omnibus crime legislation. The same principle applies here. When 
there is an upswing in criminal and unethical behavior, we have to get 
tough.
  Corporate greed is a scourge on Americans and those who are 
participating in it should be paying the price.
  This legislation will ensure they do pay a price commiserate with the 
pain they have inflicted upon the American people.
  I'd like to thank my colleague Senator Sarbanes for his tireless work 
on this bill. His efforts to crack down on unethical accounting 
practices are greatly appreciated.
  I urge all of my colleagues to join me in supporting this bill. 
Through this legislation, we can move away from the failures of the 
past, begin to restore investor confidence, help return to our strong 
economy and prove that a few bad seeds cannot bring down our great 
Nation.

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