U.S President George W. Bush today signed corporate responsibility legislation that calls for tougher punishment for fraud and makes business executives personally responsible for their corporate financial statements.

The law is Bush’s response to the numerous U.S. corporate accounting scandals that have led to the huge bankruptcy filings of Enron, WorldCom and Global Crossing. The scandals have hurt investor confidence in equity markets.

“No more easy money for corporate criminals, just hard time,” Bush promised in a speech given at the White House.

“This law says to every American, there will not be a different ethical standard for corporate America than the standard that applies to everyone else,” he said.

Under the legislation, the penalty for mail and wire fraud will be raised to 20 years in prison from the current five years. Accounting firms will also face limitations on the consulting work they can do for the clients they audit. An independent oversight board will be created to monitor the accounting industry.

The new law will also make chief executives and chief financial officers personally responsible for their corporate financial statements.