Mike Levin: “the Republican staff of the Joint Economic Committee put out a report called, ``Understanding the Stock Option Debate.''…”

“the Republican staff of the Joint Economic Committee put out a report called, ``Understanding the Stock Option Debate.'' They have gone through a lengthy analysis dated July 9, 2002, in which they conclude the following: Existing accounting principles provide an unambiguous answer. Stock option awards should indeed be treated as a cost in financial statements. It is quite clear to me that two things are true. No. 1, that how we treat stock options is an essential part of the post-Enron reform effort. That is No. 1. No. 2, it seems clear to me that there is at least a likelihood that a majority of this body, if allowed to vote on this amendment, will vote to refer this matter to an independent accounting standards board which has its own source of revenue, free from the kind of pressure which it was under in 1994 and 1995, to reach an appropriate conclusion. Do I believe that conclusion will be the same as they reached in 1994? I do. It is very clear to me they would reach such a conclusion and should reach such a conclusion. But as our colleagues have pointed out, that is up to the board under this amendment. We would not be adopting a standard. In all honesty, I expect they would continue on the same course they were on 8 years ago when they were violently thrown off course by people who had control over the purse strings of the organization. I would expect that would happen. But under this amendment, it is their call, not ours.”