WASHINGTON -- George W. Bush sat down privately with the
nation's top business executives late last Thursday afternoon and gave them
an earful about corporate ethics in what is being called America's second
Gilded Age. It is a subject the president feels deeply about but so far has
not addressed fully in public. So, his unscripted comments to the
businessmen were not released.
Will President Bush ever speak to the public definitively on
what he considers corporate conduct that poisons the stock market and
threatens the economy? "Stay tuned," responded one aide who shares his
concern. A presidential address is planned after the Fourth of July, on
grounds the country will not pay attention between now and the summer
holiday if he tries to restore investor confidence. Nevertheless, as the G-8
summit began in Canada Wednesday, the president was rocked by the WorldCom
accounting scandal -- calling it "outrageous" and pledging to "fully
Bush until now has been restrained from expressing himself fully
by words of caution inside and outside his administration. He is told
presidential exhortation could worsen declining stock prices, while he
contends corporate misbehavior is at the core of failing capital markets. In
the president's silence, the U.S. government's voice has become low-level
Justice Department aides mobilizing power to destroy the Arthur Andersen
Word spread through Washington last week that Bush would speak
out at a previously scheduled meeting with The Business Roundtable (BRT),
large corporation CEOs who belong by invitation only. Typically in dealing
with big business, the White House covered the proceedings with a veil of
The White House did not want to publicize the president's
remarks, and left the account of Bush's admonitions about CEOs to a CEO: BRT
Chairman John Dillon of International Paper. Dillon reported that Bush urged
the business barons to "step up our focus on corporate governance" and "get
out in front of this and make any corrections that are required." Dillon was
defensive: "It bothers me immensely when people speak about, 'We don't trust
CEOs,' and where that exists, we're going to fix it."
Understandably, that message was buried in an Associated Press
dispatch and ignored by major newspapers. Nor did the news media pay much
attention a night earlier when Bush, at the end of a pep talk to a massive
Republican fund-raiser, declared: "If you run a corporation in America,
you're responsible for being honest on your balance sheet with all your
assets and liabilities." Republicans who paid up to $250,000 apiece to be
with the president that night responded with restrained applause.
Such brief interjections by Bush throughout the year are in lieu
of a full-scale treatment that would clearly align him against CEO greed.
Recently when asked over dinner by a group of business executives whether
the president would speak out on this issue, a top administration economic
adviser replied that there simply was no time on Bush's crowded schedule --
a palpably implausible explanation. Actually, many administration officials
who feel that Bush's intervention could be hazardous to the economy have
pressed against such a speech.
In the absence of a ringing statement by Bush, his
administration's anti-corruption message has been carried by young career
lawyers on the Justice Department's Enron Task Force. Overriding efforts by
former Federal Reserve Chairman Paul Volcker to save Arthur Andersen, the
Justice Department destroyed the old accounting firm by indicting it.
When a jury voted a conviction June 15 via a bizarre course of
reasoning, Justice lawyers looked giddy with joy. "We're not finished with
Arthur Andersen," vowed task force chief Leslie Caldwell. There is not much
public purpose in picking over the company's bones, and key members of
Congress from both parties agree that the government's first target should
have been Enron instead of Andersen.
Bush sees the problem as much bigger than Enron or Andersen. In
private, the president loses his temper when he talks about betrayal by such
CEOs as Tyco's Dennis Kozlowski, the multi-millionaire who cheated in
avoiding sales taxes on fine art. Some aides still contend that Bush's own
words would spook markets and that his good friend, Secretary of Commerce
Donald Evans, should do the admonishing. But in his heart, George W. Bush
seems to understand that only he can restore trust.