House GOP faces accounting bill deadline

WASHINGTON, July 23 (UPI) -- House Republicans defending their overhaul of accounting firm regulations faced an uphill battle Tuesday: new pressure from Democrats to abandon it and accept a strong bill from the Senate, a request from President George W. Bush to get a bill to his desk fast, and a congressional vacation set to start Friday.

While markets continued to fluctuate Tuesday, House Minority Leader Dick Gephardt, D-Mo., announced plans to collect signatures on a petition to force a House vote on the accounting overhaul bill already passed by the Senate in a 97-0 vote.

Opponents of the House GOP plan predicted that jittery House Republicans would not want to go home for August recess without a vehicle to help fix the accounting crisis.

"If they take their little vacation while the markets are on the slide, they are not going to like what they find," said Barbara Roper, director of investor protections at the Consumer Federation of America.

Roper said she supports the Senate bill, which would set up a powerful new panel to oversee accounting firms and bar accountants from also performing many consulting tasks for the same clients.

President Bush said Monday Congress should act before members leave town.

"The key is for Congress to get a bill," Bush said Monday during a tour of the Advanced Photon Source Lab Argonne National Laboratory Argonne, Ill. "I talked with the Speaker about it today. He's optimistic that we will get a good bill. And I meant what I said, I'd like to see the bill on my desk prior to the recess."

House Majority Leader Dick Armey, R-Texas, said speed was not as important as substance.

"Doing right with respect to the policy considerations is more important than doing it quickly for the political considerations," Armey said.

Both the House and Senate versions of the legislation would set up a new board to set accounting standards and punish offenders, but they differ on how independent and powerful the new board should be.

The original House version that passed in a divided chamber did not contain provisions to crack down on white-collar criminals. And while it would set up a board to oversee accounting firms, consumer groups complained that it would be run by other accountants and not be suitably independent.

Democrats stepped up the pressure Tuesday to accept most of the Senate bill and move fast.

"It is essential that we move expeditiously if we are to complete business on the accounting reform bill this week," House Financial Services Committee Ranking Member John LaFalce, D-N.Y. wrote in a July 23 letter to Chairman Rep. Mike Oxley, R-Ohio. "Our common goal should be to ensure that any House offer strengthen, rather than weaken, the Senate bill. We stand ready to meet at your earliest convenience."