Rediff Logo
Money
Line
Channels: Astrology | Broadband | Contests | E-cards | Money | Movies | Romance | Search | Women
Partner Channels: Auctions | Health | Home & Decor | IT Education | Jobs | Matrimonial | Travel
Line
Home > Money > Reuters > Report
February 1, 2002 | 1510 IST
Feedback  
  Money Matters

 -  'Investment
 -  Business Headlines
 -  Corporate Headlines
 -  Business Special
 -  Columns
 -  IPO Center
 -  Message Boards
 -  Mutual Funds
 -  Personal Finance
 -  Stocks
 -  Tutorials
 -  Search rediff

    
      







 
Reuters
 Search the Internet
         Tips
 Sites: Finance, Investment
E-Mail this report to a friend
Print this page Best Printed on  HP Laserjets

Bush to propose post-Enron limits on stock sales

US President George W Bush on Friday will propose barring executives from selling stock during 'blackout' periods like the one that kept Enron Corp workers from bailing out while the company's shares plunged last year, a senior White House official has said.

Bush will unveil a series of pension reforms Friday at a Republican Party retreat, a venue that underscores his party's concern that the collapse of the Houston-based energy trader and top Bush political contributor could hurt the President and his party in the November 5 congressional elections.

Congressional and federal officials are investigating whether Enron misled investors about its accounts, leading to its Decemebr 2 bankruptcy, and whether executives sold stock when employees were blocked from doing so during a blackout period while their 401(k) (pension) plan changed administrators.

Bush's proposals would require workers receive 30 days notice before the start of such blackout periods and that they be allowed to sell company stock that they receive in employer contributions and to diversify once they have participated in their company's 401(k) plan for three years.

The proposals, outlined by the white house official, would also make companies liable for losses as a result of workers' inability to trade during a blackout period if the employer violated its duty to act in the workers' interest when it created the blackout period. The official said the white house would work with the Congress to translate the reforms into law.

ALSO READ:
The Enron Saga

Back to top
(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report

ADVERTISEMENT