May 13, 2002

Sarbanes Drafts Bill

The SEC finally has posted its proposal release on Critical Accounting Policies – its at

The controversy over Chairman Pitt’s meeting with the new KMPG chair may subside as Senator Tauzin has publicly stated that – after his own meeting with Chairman Pitt – he believes that nothing inappropriate was said to the KMPG chair. The end result of this controversy likely will be limited access to Chairman Pitt, not a desirable result for most groups with a viewpoint during this heavy rulemaking period.

Senator Sarbanes (D-Md.), the head of the Senate Banking Committee, has circulated a draft bill regarding accounting reform. The bill is more strict than the bill that Senators Dodd and Corzine introduced a few weeks ago, which has languished. And certainly more restrictive than the House bill sponsored by Rep. Oxley that passed the House Financial Services Committee last month. Senator Sarbanes seeks his committee to approve the bill by Memorial Day.