Stephanie Herseth Sandlin: “by now we are all well aware of the recent wave of corporate accounting scandals and the consequent need for systemic…”

“by now we are all well aware of the recent wave of corporate accounting scandals and the consequent need for systemic reform in this country. Though WorldCom is only one of several high-profile cases of corporate abuse, the sheer size of WorldCom's alleged accounting ``error'' and the ease with which the company perpetrated this fraud have served as the catalysts for long overdue and much-needed reform. According to the Wall Street Journal, public pension funds, such as the teacher retirement system in Texas, mutual funds and insurance companies in my home State of Texas, hold approximately $870 million in WorldCom bonds that are virtually worthless as a result of imminent Chapter 11 bankruptcy filing. Simply, the type of corporate behavior that has led to WorldCom's meltdown is outrageous. It must end right now. WorldCom's financial situation, when considered in the context of other recent corporate accounting scandals, raises the troubling question of these scandals' immediate impact on investor confidence, and potentially long-term impact on investors' faith in the integrity of our capital markets. Access to accurate financial information is essential to the proper functioning of the markets, and as corporate America seems unwilling thus far to enact reasonable financial reforms, Congress must reform the system.”