House Passes Phony Accounting Bill

Jul 20, 2004
Press Release

WASHINGTON, DC - The House today voted to pass H.R. 3475, the so-called “Stock Options Accounting Reform Act,” and defeated an amendment by Congresswoman Carolyn Maloney (NY-14) that would have preserved the long-standing authority of the Securities and Exchange Commission to set accounting standards when it determines that it is necessary “for the protection of investors or in the public interest.” Maloney said the following:

“Regrettably, the House today overturned the principle that accounting standards should be set for the protection of investors, and instead adopted the principle that accounting standards should be set for the competitive advantage of a few companies,” Maloney said. “Every financial expert, from Alan Greenspan to Warren Buffet to Arthur Levitt to William Donaldson, opposes this bill and advocates independent standard setting. Congress should not play regulator, but the savings and loan debacle apparently didn’t teach all of us that lesson.”

“Senator Shelby has repeatedly said that he will not allow legislation to proceed in the Senate that guts independent standard setting. I am confident that my colleagues in the Senate will not let this phony bill go through.”

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