Aug. 07, 2002 - 20:14 MDT

THE WONDERING JEW

Behind The Curtain

Ashleigh Brilliant's 'Pot Shots' are usually to the point, dead on target. Today there is a conference table with the suits sitting around. The speaker says, "Why act now, while there's time ? Let's wait until events force us to take desperate, futile measures.

There is a dolly, Molly - Ivins by name, Who can see through the pols game !

M. Ivins has a column in todays paper which indicates to me that I might be right in thinking that the barn doors are closing so slowly that the bete noirs are escaping.

She mentions, in 1994 the Senate persuades the Financial Accounting Standards Board NOT to rule that stock options must be treated as a company expense.

In 1995 the Private Securities Litigation Reform Act is passed over President Clinton's veto.

In 1999 and 2000, the defeat of Arthr Leavitt's proposal to separate the auditing and consulting functions of the accounting firms.

Now, Sen. Paul Sarbane's bill, opposed until two weeks ago by Mr. Bush then, switchy per changy, he proclaimed it to be, "The most far reaching reform of American business practices since the time of Franklin Delano Roosevelt." Looks like a very smart guy who can change horses in the middle of the stream and not get his bum wet.

Not necessarily so. Sen. Sarbane's bill deals with the small stuff. Leaving the big stuff for someone else to fight. Not belittling the Senator, I am sure it was almost 'Mission Impossible,' His bill deals with the separation of auditing and consulting functions. Something obviously needed since the Enron-Andersen operations exposed the hole in the boat. It will still depend on if the Securities and Exchange Commission will appoint a decent 'indendent board' to oversee the accountants.

Leaving the foxes yet again in the hen houses to continue their fun and games. In 1995 Rep. Newt Gingrich's Contract On America has a stinger, in it is the Private Securities Litigation Reform Act passed over presidential veto. It limits the right of investors to sue, exempts accounting firms from charges of aiding and abetting in cases of fraud, and allows CEOs to make ridiculous earnings claims.

In 1994 the Senate persuadesthe Financial Accounting Standards Board NOT to rule that stock options must be treated as a company expense. Opening the henhouse door wide. So now, accounting and consulting may not be done by the same firm. Ha, My opinion is that the corporations will find a way around that easily.

Leaving our country still under attack in this way. Stock options may be treated as company expense. Investors have limited rights to sue, exempt are accounting firms from charges of aiding and abetting in cases of fraud and allowing CEO's to make ridiculous earnings claims.

The main problems appear to still be with us. Accountants may not be consultants, and vice versa. But as long as one acounting firm does not call itself a consultant the blatant abuse of employees and investors by the corporations can contine. Where the heck is a Dutch Boy with a big finger when he is needed ?

Reminds me of politicians on going out of office immediately being employed by industries they had dealings with while in office. Or did someone put a stop to that ?

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