Shelley Moore Capito, July 26, 2002

West Virginians may be quite skeptical about corporate integrity lately, but two significant events happened last week to renew American’s faith that real reform is possible.

On Wednesday, Federal authorities arrested five former executives of Adelphia Communications Corp., and charged them with defrauding investors out of billions of dollars. The Justice Department and the Securities and Exchange Commission accused the men of breaking securities laws and using the cable television company as their "personal piggy bank."

And second, in the halls of government, the House of Representatives and Senate came to a landmark agreement on a corporate accountability plan. The bill calls for a Public Company Accounting Oversight Board; enhanced corporate disclosure; requirements for investors who have lost money in the markets as a result of corporate malfeasance to receive compensation from any legal settlement; and new criminal penalties for a broad array of white-collar crimes.

The response was resounding.

U.S. stock prices staged their biggest one-day rally in nearly 15 years. The Dow Jones industrial average gained 488.95 points, making it the second-biggest one-day percentage gain since the market crash of 1987. And Trading on the New York Stock Exchange was the heaviest on record, with more than 2.7 billion shares trading hands.

I highlight this market rally, not to suggest that investor confidence has been completely restored, but to illustrate the clear cause and effect relationship.

Real action -- specifically when it comes to cracking down on corporate criminals -- requires real leadership.

At a time when West Virginia consumers are losing faith in business integrity, it is most important to lead by example. As leaders in Congress, elected officials like myself have an obligation to send the message that there is absolutely no room for fraud in business.

There should be no difference between ethics and business ethics. There are no special exceptions for corporate leaders with regard to the rule of law.

West Virginia workers have concerns about their families’ futures. Whether they are saving to educate their children or working to secure their own retirements, hard working West Virginians don’t want to see another corporate hocus pocus act where they get the raw end of the deal.

So, if Congress is serious about restoring faith in business, corporations and financial markets, then it must continue to show strong leadership and implement the kids of real, bipartisan reform that has taken place this week.

Shelley Moore Capito is a Republican member of the U.S. House of Representatives from West Virginia.