Released: June 14, 2007

Bush stance on investor lawsuits criticized

Source: Carrie Johnson, Washington Post (Free Registration)

The chairman of the House Financial Services Committee yesterday said he was “troubled” by disclosures that President Bush had expressed policy views that prompted administration lawyers not to file court briefs supporting investors.

Rep. Barney Frank (D-Mass.) said the Bush administration was wrong to allow concerns about class-action lawsuits to override efforts this week by the Securities and Exchange Commission to file a brief in an upcoming Supreme Court case.

“You’ve got the president making economic arguments,” Frank said in an interview yesterday. “Those aren’t legal arguments. . . . I think they’re setting a bad precedent.”

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