Last week, Congressman Frank Lucas joined fellow Financial Services Committee member Congressman Ed Perlmutter (CO-07) in introducing H.R. 1349, the Federal Accounting Oversight Board Act of 2009.  This bipartisan legislation would create an oversight board to approve and oversee accounting standards and principles.

“By establishing safeguards like this oversight board to monitor accounting practices within the financial system, we are striving to provide greater flexibility in an ever-changing economic environment,” stated Lucas.  “This will provide five of the key members of the federal regulatory community with an enhanced ability to oversee the regulatory framework of the financial system and provide a broader economic perspective of accounting practices.”

 
The Federal Accounting Oversight Board would be comprised of the Chairman of the Federal Reserve, the Secretary of the Treasury, the Chairman of the Securities and Exchange Commission (SEC), the Chairman of the Federal Deposit Insurance Corporation (FDIC), and the head of the Public Company Accounting Oversight Board.  The legislation will be a topic for discussion at a Financial Services Committee hearing tomorrow, March 12th.

“This bipartisan bill is one step towards preventing future crises within our financial system,” stated Lucas.  “While not the only cause, certain accounting practices clearly have intensified some of our current problems.  The Federal Accounting Oversight Board will work to prevent that in the future.”

The bill will now be referred to the House Committee on Financial Services, of which Congressman Lucas and Congressman Perlmutter are both members.

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