MALONEY AMENDMENT CALLS FOR HIGHER ETHICAL STANDARDS
Washington, D.C. - Today, Congresswoman Carolyn B. Maloney (D-NY) introduced and passed an amendment to H.R. 3763, the Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002, in the Financial Services Committee.
"At the heart of the Enron collapse is a complete moral and ethical failure on the part of management. The Enron board took the unusual act of voting to waive its code of ethics when it allowed Andrew Fastow, the Chief Financial Officer, to take positions in Special Purpose Entities (SPE) that presented severe conflicts of interest to Enron. My amendment sets general conditions for a code of ethics, promoting honest and ethical conduct and the avoidance of conflicts of interest, and I am pleased that my amendment was passed by the Financial Services Committee." said Mrs. Maloney said in a statement today.
Maloney's amendment would require that all public company senior financial officers have a code of ethics which establishes standards to promote honest and ethical conduct and is applied to their principal financial officer, comptroller, or principal accounting officer. It also would make a waiver of or change of a code of ethics a material event and would require companies to post such a change on their website or other public forum.
At the time of this release, the bill was still pending in committee.