So Long, Mr. Webster
The Wall Street Journal is reporting that William Webster is likely to resign as chairman of the new accounting oversight board due to continuing questions about his involvement in U.S. Technologies. As head of U.S. Technologies' audit committee, Webster was responsible for firing its auditor, BDO Seidman, after Seidman pointed out some irregularities.
The accounting industry is in need of reform, as the Enron and WorldCom scandals highlight. This gives the Bush administration the chance to place some real reformers in two key positions and take on the mantle of protecting the investor. If they do not, they leave themselves vulnerable to charges by Democrats that the GOP is protecting Big Business at the expense of the regular guy, which could come back to haunt them in two years. Unfortunately, there have been no signs from the administration that they intend to follow that tack.