House panel OKs subpoenas of top officials of WorldCom

WASHINGTON -- A House committee on Thursday subpoenaed top officials of WorldCom Inc. as President Bush voiced concern about the potential economic impact of the accounting scandal.

Bush spoke of "corporate leaders who have not upheld their responsibilities," while Treasury Secretary Paul O'Neill urged jail terms for executives who falsely certify company finances.

It was more tough talk from the administration amid a crisis of confidence in corporate America that could threaten a tenuous economic recovery.

On Capitol Hill, the House Financial Services Committee issued subpoenas to compel testimony by three WorldCom officials and an influential Wall Street analyst who promoted the company's stock. The four, including former President and Chief Executive Officer Bernard Ebbers and current chief John Sidgmore, will be summoned to appear at a July 8 hearing.

The House Energy and Commerce Committee, which has been investigating the bankruptcies of Enron and Global Crossing, sent Sidgmore a letter Thursday asking for a number of records, including those related to a WorldCom internal audit and minutes of WorldCom's board and audit committee. Requesting the documents be produced by July 11, Reps. Billy Tauzin, R-La., and Jim Greenwood, R-Pa., said they were "committed to learning exactly how such a massive misstatement could have occurred."

The Securities and Exchange Commission worked on its investigation of WorldCom after filing civil fraud charges against the company Wednesday.