US President George W Bush has signed into law sweeping corporate accountability reform legislation, vowing a crackdown on executives who defraud investors.
In the elaborate White House ceremony, Bush said the 'tough' new law will allow the government to 'act against those who have shaken confidence in our markets.'
The US markets have shuddered under the collective weight of a string of accounting scandals at some of the country's top companies as well as a softening economy, which was officially in recession for several months of 2002. The White House has billed the legislation as the most 'far-reaching reforms of American business practices since the time of Franklin Delano Roosevelt.'
'This law says to every dishonest corporate leader: You'll be exposed and punished,' Bush said. 'The era of low standards and false profits is over. No board room in America is above or beyond the law.'
The new Corporate Auditing Accountability law will tighten oversight of auditors, stiffen penalties for errant executives and require greater accountability for financial statements from top corporate officers.
Bush signed the bill into law as the US markets, after a spectacular rally on Monday, swung lower, amid news that consumer confidence plunged for a second-straight month, to a level worse than expected by Wall Street analysts.
