WASHINGTON A congressional panel announced Thursday that it would call Worldcom executives to testify on the telecom firm's $3.8 billion accounting misstatement.

The House Committee on Financial Services said it would also subpoena Jack Grubman, the former telecom analyst at Salomon Smith Barney with close ties to the industry, for the planned July 8 hearing.

Committee Chairman Michael Oxley said former chief executive Bernie Ebbers, current President and Chief Executive John Sidgmore and sacked chief financial officer Scott Sullivan would all be called in front of the congressional panel, AFP reported.

"Sadly, the news brings us yet another incident of accounting overreach," Oxley said. "These alleged short-term gains created by the executives are going to cause long-term pain for the Worldcom families." The hearing is to delve deeper into the accounting problems plaguing the telecommunications sector, and their effects on employees, retirees, and investors, a committee statement said.

"The Worldcom news dramatically underscores the need for legislative and regulatory reform," Oxley said.

"Problems with accounting in telecommunications are, unfortunately, damaging a key growth sector of the economy that is already facing other, steep challenges." Salomon Smith Barney said it will fully cooperate with the panel, adding that Grubman would appear voluntarily and did not need to be issued a subpoena.

Grubman, who once worked at AT and T Corp., became a familiar figure during the late 1990s high-tech boom as the author of reports on the telecom sector.

A class-action lawsuit filed earlier this month accused Grubman of recommending another firm, Global Crossing, "without any reasonable factual basis," and failing to disclose significant, material conflicts of interest to obtain investment banking business.

The day before the Worldcom scandal broke, Grubman cut his rating on the former long-distance giant and said there was growing evidence the company's position was deteriorating further.

Meanwhile, U.S. President George W. Bush on Thursday said he was "concerned" about the impact the unfolding Worldcom scandal may have on the U.S. economy and appealed for enhanced corporate responsibility.

"I'm concerned about the economic impact of the fact that there are some corporate leaders who have not upheld their responsibility," Bush said as he met here with Russian President Vladimir Putin.

"If you are a responsible citizen and you run a corporation in America, you must fully disclose all assets and liabilities, and you must treat your shareholders and employees with respect," said the U.S. leader.

Markets round the world fell sharply after Worldcom revealed late Tuesday that it had uncovered almost four billion dollars in accounting irregularities and possible fraud.