Sunday, May 14, 2006

Bush gives the Director of National Intelligence Financial Directive Authority

In a Memorandum of May 5, 2006, titled
Assignment of Function Relating to Granting of Authority for Issuance of Certain Directives, Bush gives the Director of National Intelligence (currently John Negroponte) financial directive authority under section 13(b)(3)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78m(b)(3)(A)).

Essentially, what this appears to do is confirm that the
US spy agencies will be starting new front companies on US soil, and allows those companies to avoid having to pay the "annual accounting support fee" which is levied on all publically traded companies who issue securities to help fund the Public Company Accounting Oversight Board. It is also possible, depending on how one reads the invoked section, that this Memorandum may also allow these front companies to avoid keeping accounting records.

The Public Company Accounting Oversight Board's mission, according to their
website is:

The PCAOB is a private-sector, non-profit corporation, created by the Sarbanes-Oxley Act of 2002, to oversee the auditors of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.


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