There can be no doubt the full circumstances surrounding the collapse of the Enron Corporation have yet to be uncovered, and may never be fully uncovered. However, at present, we can clearly see that the implosion of this once towering giant has left tens of thousands of investors with enormous financial losses, a large number of Enron employees without jobs, and their entire pension savings eliminated. We can also see that the plummeting value of Enron stock and its resulting ripple in the financial markets has had devastating effects on other pension systems as well. Even Hawaii is not immune to such effects. In the weeks and months to come, I fear we may learn of further impacts from the Enron collapse.

The viability and confidence of our financial market systems are dependent upon accurate and reliable information. Like everyone, I am most disturbed by the allegations of reckless investment practices, false reporting and illegal accounting practices, use of off-the-book balance sheets to conceal debts and liabilities and inflation of corporate earnings. Even savvy investors failed to detect Enron's financial troubles. Obviously, the collapse speaks to the possible failures in oversight of our financial market systems.

In the first grips of this crisis, passions are running high, and it is only natural that persons and organizations of all persuasions are pressing for the immediate adoption of hastily-drafted proposals. While there can be no doubt that corrective measures to restore public confidence in our financial markets will be necessary, I believe strongly that such measures must be the product of careful study and thoughtful analysis. I am confident that the Chairman will use his leadership wisely to guide us toward a rational response.

As we grapple with this sad chapter in our nation's history, we need to restore the public confidence in our financial reporting and market systems.