Presidential Response

Congress has already held hearings and wailed at WorldCom executives. They are promising business reform and more regulations. They are looking for ways to protect 401k participants and investors.
President Bush is pushing for a full investigation. He described the WorldCom accounting scandal as "outrageous." The White House is reviewing federal contracts with WorldCom and has recommended barring future deals with the company. However, FCC Chairman Michael Powell cautions against "adding to the circumstances that might collapse the company."

The President is calling for corporate responsibility, tough law enforcement and stiff penalties. He is in favor of an independent regulatory board for accountants, disciplinary bodies and analysts. Bush has proposed tough penalties including jail time for those who are deceptive with financial statements.