NEW YORK -- The chairman of the Securities and Exchange Commission
announced today that his agency has filed fraud charges against WorldCom
Inc., a day after the company disclosed it had grossly overstated its profits in
one of the largest accounting scandals ever.
Harvey Pitt also lashed out against congressional critics who questioned his leadership, and he defended his agency's role in restoring confidence in America's financial system.
Pitt also said he was directing the chief executive officers and chief financial officers of the largest 1,000 companies in the country to vouch for the accuracy of their financial statements.
Pitt stressed that the selection of the 1,000 largest companies was not intended to limit the scope of the agency's scrutiny of corporate finances.
"No one is getting a pass," he said.
The action filed today in federal court in New York was also aimed at preventing both the destruction of documents by WorldCom and payouts to WorldCom executives past or present while the SEC continues investigating, he said.
Earlier in the day, Sen. John McCain, R-Ariz., questioned whether the SEC can be effective under the leadership of Pitt, who represented big Wall Street brokerages and major accounting firms as a private securities lawyer.
Pitt struck back at those critics and defended his agency's enforcement staff and their ability to hold corporate America accountable for its misdeeds.
"I will not stoop to the level of those who seek to attack the diligent agency for political revenge," he said at a news conference before a scheduled appearance in New York Wednesday evening.
"The system needs repair. We are repairing it. I have no interest in blaming anyone for the system I have inherited," he said.
Pitt said that in the 10 months since he has taken over as SEC chairman, the agency has laid out an effective series of measures in order to make the U.S. financial system more accountable to investors.
Pitt also told congressional budget leaders today that his agency was going to need more than the 100 additional professionals than he has already asked for in order to handle the growing load of enforcement actions.
The House voted overwhelmingly today to authorize a 77 percent boost in the SEC's budget, raising it to $776 million for the fiscal year beginning Oct. 1.
"We are committed both in word and in deed to taking every conceivable action to make sure that a system that was allowed to go unimproved for far too long is now improved," Pitt said.
Harvey Pitt also lashed out against congressional critics who questioned his leadership, and he defended his agency's role in restoring confidence in America's financial system.
Pitt also said he was directing the chief executive officers and chief financial officers of the largest 1,000 companies in the country to vouch for the accuracy of their financial statements.
Pitt stressed that the selection of the 1,000 largest companies was not intended to limit the scope of the agency's scrutiny of corporate finances.
"No one is getting a pass," he said.
The action filed today in federal court in New York was also aimed at preventing both the destruction of documents by WorldCom and payouts to WorldCom executives past or present while the SEC continues investigating, he said.
Earlier in the day, Sen. John McCain, R-Ariz., questioned whether the SEC can be effective under the leadership of Pitt, who represented big Wall Street brokerages and major accounting firms as a private securities lawyer.
Pitt struck back at those critics and defended his agency's enforcement staff and their ability to hold corporate America accountable for its misdeeds.
"I will not stoop to the level of those who seek to attack the diligent agency for political revenge," he said at a news conference before a scheduled appearance in New York Wednesday evening.
"The system needs repair. We are repairing it. I have no interest in blaming anyone for the system I have inherited," he said.
Pitt said that in the 10 months since he has taken over as SEC chairman, the agency has laid out an effective series of measures in order to make the U.S. financial system more accountable to investors.
Pitt also told congressional budget leaders today that his agency was going to need more than the 100 additional professionals than he has already asked for in order to handle the growing load of enforcement actions.
The House voted overwhelmingly today to authorize a 77 percent boost in the SEC's budget, raising it to $776 million for the fiscal year beginning Oct. 1.
"We are committed both in word and in deed to taking every conceivable action to make sure that a system that was allowed to go unimproved for far too long is now improved," Pitt said.
