US business chiefs warn on regulatory changes

Business Roundtable, a group of chief executives which run companies with a combined worth exceeding $3.5tn (£218bn), condemned the Enron situation as a ‘massive breach of trust’.

But it still maintained that the current practices of corporate governance and corporate responsibility in the US were acceptable.

‘The United States has the best corporate governance, financial reporting, and securities markets systems in the world. These systems work because of the adoption of best practices by public companies within a framework of laws and regulations,’ the BRT claimed.

Furthermore the group said the collapse of Enron was a ‘profound and troubling exception to the overall record of success’ and said the ‘system generally worked well’.

It said care must be taken when proposing new regulations after the failure of Enron to ensure that ‘US public corporations’ ability to compete, create jobs and generate economic growth, are not inhibited.

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