Investors Should Demand Reforms
James Flanigan had it exactly right when he wrote, “Congress is unlikely to pass legislation governing business because it is in thrall to business lobbying and dependent on campaign contributions.†[“Andersen Verdict Signals New Government Crackdown,†June 18]
However, the rest of the thrust of his article is too rosy. He claims that a more vigilant executive branch will curb the dishonest behavior and cheating. Wrong!
The executive branch is just as much in thrall to the same interests, if not more so. Witness the “Last Hurrah for Big ‘Soft’ Spenders?†[June 19].
By blocking reform legislation, the accounting profession will continue its double-dipping arrangement with CEOs so their integrity is compromised. The accounting statements still will not reflect reality. Only strong congressional action can restore the confidence of investors.
Emil Lawton
Sherman Oaks
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