Christopher Shays: “I want to commend Chairman Mike Oxley and Chairman Richard Baker for their work on the legislation we are debating. The…”

“I want to commend Chairman Mike Oxley and Chairman Richard Baker for their work on the legislation we are debating. The reforms contained in this accounting bill represent a balanced approach between industry and government oversight and I am pleased to support it. The Corporate and Auditing Accountability, Responsibility, and Transparency Act meets the tests for reform put forward by President Bush. It prohibits accounting firms from offering certain controversial consulting services to companies they're also auditing. And it establishes a new, public regulatory board to certify any accountant wishing to audit the financial statement required from public issuers of stock. This board will have enforcement powers and will be under the direction of the Securities and Exchange Commission. Under CAARTA, all publicly-traded companies will be responsible for ensuring that their accounting firms are in good standing and for having their financial statement certified by the regulatory board. Well, maybe I shouldn't be so quick to say 'all' publicly-traded companies. You see, there are two giant private corporations that enjoy a very special privilege from the federal government: they are completely exempt from our federal securities laws. Mr. Chairman, these companies are Fannie Mae and Freddie Mac, and all the important improvements this legislation makes won't apply one iota to them.”