IP: Leader Views WorldCom as Security Issue for the Nation

[David Farber <dave () farber net>]

[Sounds like -- either bail us out or nationalize us comments. I like the 
"his management team was not responsible for the company's accounting 
problems" -- I thought he was always part of the team?? djf]

John W. Sidgmore, the chief executive of WorldCom, said yesterday that the 
survival of the company was a national security issue and that his 
management team was not responsible for the company's accounting problems. 
But he did not rule out a bankruptcy filing.
...

Mr. Sidgmore also made the case that WorldCom, which carries about a third 
of the world's Internet traffic on its network, was a crucial part of the 
nation's communications infrastructure and an important competitor in the 
telecommunications industry.
"I believe it is in the interest of our national security, American 
consumers and the millions of WorldCom's customers and shareholders to make 
WorldCom's survival a top priority," he said.

Mr. Sidgmore's plea for greater understanding of WorldCom's importance did 
not appear to garner much sympathy from federal officials. Michael K. 
Powell, the chairman of the Federal Communications Commission, made no 
commitment to assist WorldCom after meeting with Mr. Sidgmore yesterday.

Defense Secretary Donald H. Rumsfeld, when asked by reporters whether 
WorldCom's difficulties posed a security risk, said, "I am not worried 
about the risk to the Pentagon from a single company having a change in its 
corporate situation."

Of course, even if WorldCom files for bankruptcy protection or is acquired 
by outside investors, there is little chance that its operations would be 
disrupted.

http://www.nytimes.com/2002/07/03/business/03TELE.html

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