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House Passes Corporate Fraud Bill
Thursday, July 25, 2002
(13:06 ET)
By Marcy Gordon
Associated Press Business Writer

WASHINGTON -- AP
The House passed compromise legislation Thursday to crack down on corporate fraud in hopes of easing economic jitters and restoring investor confidence in a battered stock market.

The House action, on a 423-3 vote, moved the legislation closer to signature into law by President Bush, who has indicated he will sign it.

The sweeping changes, which create stiff criminal penalties for corporate fraud and document shredding, are “a major step forward in reforming the operations of our financial market,” said Rep. John LaFalce of New York, senior Democrat on the House Financial Services Committee. “It is my hope that this legislation will help to restore the reputation of American business.”

In a further sign of congressional urgency, Senate Majority Leader Tom Daschle, D-S.D., said the measure would likely be on the Senate floor on Friday.

Lawmakers in both parties were seeking to restore Americans' shattered confidence in business and the market, mindful that they must face voters in November.
(Wire.AP.org News Source)
2002 © The Associated Press.

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