Promoting Transparency in Financial Reporting Act of 2009

I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 2664, the Promoting Transparency in Financial Reporting Act.

I would like to thank the cosponsors of this bipartisan measure, including Mr. Davis of Kentucky, who championed this proposal in earlier Congresses, Mr. Putnam, Mr. Castle, and Mr. Scott of Georgia.

Every day, I hear from constituents who are experiencing a great amount of anxiety over what is happening to their portfolios--from younger families who are trying to save for their first homes or older workers who have had to put off long-planned retirements. While they certainly understand most of these losses can be attributed to the turmoil of our economy, we now know the role that faulty financial reporting, be it intentional or otherwise, played in affecting investors' decisions.

This issue, of course, features prominently in ongoing discussions of regulatory reform frameworks, and rightly so. We won't be able to fully restore investor and consumer confidence unless we have a system that allows for the clearest and most accurate financial reporting. That's why we need transparency.

It's not enough, however, just to pursue and to promote transparency for its own sake. Having run a business, I know that, if you want to have a healthy corporate environment, you have to have sound financial reporting. I also understand how time-consuming and costly these accounting processes can be. So it is critical, in bringing information to light, that we also take care to identify the complexities that trip up everyone from small businesses to large corporations and then pursue reforms that may simplify and improve the process.

That's why, with this simple bipartisan measure, we would require annual congressional testimony by the Securities and Exchange Commission, by the Financial Accounting Standards Board and by the Public Company Accounting Oversight Board on efforts being undertaken to reduce the complexity and costs of financial reporting and to increase transparency for investors.

Specifically, H.R. 2664 helps Congress exercise legitimate oversight authority to hold these institutions accountable for protecting taxpayers and for making progress on the following critical issues: First, reassessing complex and outdated accounting standards; second, increasing the usability of the existing accounting and auditing literature; third, developing principle-based accounting standards; fourth, encouraging the use and acceptance of interactive data; and fifth, promoting disclosure in plain English.

This bipartisan Promoting Transparency in Financial Reporting Act represents a critical step towards protecting taxpayers by creating a process for simplifying and for improving our financial reporting framework. I urge the immediate passage of this important bipartisan legislation.

I yield back the balance of my time.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2664) to require annual oral testimony before the Financial Services Committee of the Chairperson or a designee of the Chairperson of the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board, relating to their efforts to promote transparency in financial reporting.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

I yield myself such time as I may consume.

Mr. Speaker, I rise today in support of H.R. 2664, the Promoting Transparency in Financial Reporting Act, drafted by the gentleman from New York, Congressman Chris Lee.

I commend his work on this bill, H.R. 2664. It is a bipartisan bill that is also sponsored by Congressmen David Scott, Geoff Davis, Mike Castle, and Adam Putnam.

Following the financial crisis our country faced last year, it is clear that we need to improve the oversight and transparency of the financial services industry. This bill would require the Securities and Exchange Commission, the Financial Accounting Standards Board and the Public Company Accounting Oversight Board to provide annual testimony to Congress for 5 years. Their testimony will help us to understand and support their efforts to reduce the complexity in financial reporting and to provide more accurate and clear financial information to investors.

Again, Mr. Speaker, I commend Congressman Lee for his work on this legislation, and I urge my colleagues to support it.

I reserve the balance of my time.

Mr. Speaker, the Promoting Transparency in Financial Reporting Act will help provide greater transparency and clarity for investors. I urge my colleagues to support this bill.

I yield back the balance of my time.