[Congressional Record (Bound Edition), Volume 148 (2002), Part 9]
[Senate]
[Page 12052]
[From the U.S. Government Publishing Office, www.gpo.gov]




  LETTER TO HARVEY PITT, CHAIRMAN, SECURITIES AND EXCHANGE COMMISSION

 Mr. SMITH of Oregon. Mr. President, I ask that a letter, sent 
today, to the Chairman of the Securities and Exchange Commission, 
Harvey Pitt, from Senator Breaux and myself be printed in the Record.
  The letter follows:

                                                  U.S. Senate,

                                    Washington, DC, June 28, 2002.
     Hon. Harvey L. Pitt,
     Chairman, Securities and Exchange Commission, Washington, DC.
       Dear Chairman Pitt: We are writing out of deep concern 
     regarding recent reports about a variety of abuses in 
     corporate accounting scandals by companies and corporate 
     executives. In particular, the accounting practices at 
     WorldCom that led to an error of more than $3.5 billion is 
     unforgivable and inexcusable.
       We are pleased to have taken steps to investigate several 
     recent disturbing disclosures and encourage you to pursue 
     initiatives to improve corporate responsibility and 
     shareholder protections. We fear that these reports of 
     corporate fraud may just be the tip of the iceberg, and the 
     need to improve accountability in America's public companies 
     is imminent.
       American business is built upon an integrity and trust in 
     business relationships that bolster our currency and provide 
     a shining face of transparency that supports western values 
     and spreads capitalism and corporate responsibility across 
     the globe. We can't emphasize how important it is for you to 
     continue to work to improve corporate disclosure, make 
     corporate officers more accountable and develop a stronger, 
     more independent audit system. American businesses must be 
     trustworthy, transparent and able to withstand the light of 
     any audit.
       We look forward to working with you and the Securities and 
     Exchange Commission as you fully investigate the companies 
     and individuals who abuse the system and prosecute them to 
     the full extent of the law. Your role is crucial as we work 
     to restore confidence in American business and restore 
     integrity and trust in our stock market.
           Sincerely,
     Gordon H. Smith,
     John Breaux,
       U.S. Senate.

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