[Congressional Record Volume 148, Number 105 (Monday, July 29, 2002)]
[Extensions of Remarks]
[Page E1452]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       CONFERENCE REPORT ON H.R. 3763, SARBANES-OXLEY ACT OF 2002

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                               speech of

                         HON. EDWARD J. MARKEY

                            of massachusetts

                    in the house of representatives

                        Thursday, July 25, 2002

  Mr. MARKEY. Mr. Speaker, I rise in support of the conference report 
on the corporate accountability bill. Make no mistake about it, Mr. 
Speaker: This conference report is the result of investors' refusal to 
be fooled by empty speeches, photo-ops and weak proposals that failed 
to go far enough to fix the crisis of confidence in the marketplace.
  Mark Twain used to say, ``A cat, once burned, won't get on a hot 
stove again. But it won't get on a cold stove either.''
  Despite intense lobbying efforts to weaken the Sarbanes bill passed 
unanimously by the Senate, investors recognized that only tough new 
reforms would fix the problems plaguing corporate America. The average 
investor thinks the financial market is rigged, so trust is hard to 
come by. Trust is to the economy is what oil is to a machine--without 
it, it will break down.
  This conference report contains tough provisions that were omitted 
from the timid bill that the House passed earlier this year. The 
conference report contains:
  A strong structural separation, a bona fide Chinese Wall, between 
stock analysts and investment bankers, so that investors can have 
confidence in the recommendations they receive.
  A strong independent oversight board for the accounting industry. 
Corporate auditors will no longer be policing themselves, but instead 
will be subject to an independent accounting oversight board.
  Bans on accounting firms offering a menu of non-audit services to 
their audit clients. The big accounting firms will not have an 
incentive to look the other way at shady accounting just to preserve 
their consulting contracts. The accountants, for too long, have been 
able to be the referees and the players in their game of finance. This 
leads to conflicts of interest that prevent a level playing field for 
market participants.
  Mr. Speaker, while this conference report is an important step 
forward, it is shameful that a strong accounting reform bill was fought 
tooth and nail by the industry and its friends in Congress.
  During this struggle for financial reform, markets plunged and 
millions of investors saw their 401(k)s cut in half to 201(k)s as hard-
earned savings evaporated.
  Today we have the opportunity to pass an important reform bill. This 
bill is a key first step to restoring confidence in the markets--which 
has been badly damaged as weak half-measures proposed since the Enron 
collapse fell far short of what the market needed. I support this 
conference report and will continue to monitor the regulatory 
implementation of the provisions contained in the report.

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