U.S. Chamber Says Bush Remarks on Capital Markets and Corporate Governance on Target

WASHINGTON, DC-U.S. Chamber of Commerce Senior Vice President and COO David Chavern issued the following statement on President Bush's speech on capital markets and corporate governance this morning in New York City:

"The president's remarks today on capital markets and corporate governance are right on the mark. We agree that Sarbanes-Oxley has had some positive impact, but, like the president, believe there are real problems with the implementation of Section 404 that must be addressed. Class action lawsuits are having a significant and detrimental impact on the competitiveness of our capital markets and capital formation and further legal reform is necessary to curb frivolous lawsuits. And we believe CEO compensation is rightly decided by boards of directors, not elected officials, and we support the SEC's recent actions to provide additional transparency and disclosure.

"Strong, healthy capital markets are critical to the success of our economy. That's why the Chamber has launched a bipartisan Commission-The Commission on the Regulation of U.S. Capital Markets in the 21st Century-that will issue recommendations on March 14 on how to improve them. The end of our commission will mark the beginning of a concerted, aggressive, long-term program by the Chamber employing significant resources. Our goal is clear: the most fair, efficient, transparent, and attractive capital markets system in the world."

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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07-24