Stepping up efforts to stabilize stock markets and shield himself from blame over a wave of accounting scandals, US President Bush urged Congress today to act by August to punish corporate abuses and "bring a new era of integrity to American business."
The sell-off in stocks along with concerns about the nation's economy could hurt Republicans in the November congressional elections.
While Mr Bush's overall approval ratings remain high, his marks for managing the economy have slipped as Democrats attacked the president's business dealings more than a decade ago at Harken Energy Corp. and questioned Vice President Dick Cheney's tenure at Halliburton Co., one of the firms now under investigation.
Mr Bush tried to boost investor confidence with a series of speeches starting on July 9 that touted US economic strengths and called for a crackdown on corporate crime. Since the White House unveiled its new initiatives, however, the Dow Jones industrial average has fallen by more than 1,200 points, more than 13 percent, to 8,019.26, the lowest close since October 1998.
"Unethical business conduct that began in the boom of the 1990s is being uncovered. Investors have lost money. Some in retirement have lost security. Workers have lost jobs, and the trust of the American people has been betrayed," Mr Bush said in his weekly radio address one day after the Dow skidded 390 points - the seventh-largest point decline ever.