non-Certified Internal Auditor |

SEC Staff Gains OMB Approval to Proceed With Data Collection for Cost-Benefit Study of SOX 404 Implementation

FOR IMMEDIATE RELEASE
2008-116

Washington, D.C., June 20, 2008 — The Securities and Exchange Commission announced today that it has approved a one-year extension of the compliance date for smaller public companies to meet the Section 404(b) auditor attestation requirement of the Sarbanes-Oxley Act. TheSecurity Exchange Commissionalso announced that it received Office of Management and Budget (OMB) approval yesterday to proceed with data collection for a study of the costs and benefits of Section 404 implementation, focusing on the consequences for smaller companies and the effects of the Section 404 auditor attestation requirements. The results of the study are expected to become available during the extension period.

With the extension, smaller companies will now be required to provide the attestation reports in their annual reports for fiscal years ending on or after Dec. 15, 2009. Security Exchange CommissionChairman Christopher Cox first proposed this one-year delay for small businesses during December 2007 testimony before the House Small Business Committee, and the Commission formally proposed this extension on Feb. 1, 2008.

TheSecurity Exchange Commissionstaff’s cost-benefit study, which was announced in February, is being led by the SEC’s Office of Economic Analysis with assistance from the Office of the Chief Accountant and the Division of Corporation Finance. The OMB’s approval on June 19 is an important milestone in the project, as theSecurity Exchange Commissionstaff can now begin the collection of data through interviews and other outreach. The staff submitted the study design for OMB review and approval in compliance with the Paperwork Reduction Act of 1995. With OMB approval, and the key financial data for annual reports becoming available to companies this spring, theSecurity Exchange Commissionstaff will be moving forward with interviews and a web-based survey as part of its effort to collect real-world data from a broad array of companies and analyzing what drives costs, particularly for smaller companies, and where companies and investors derive the benefits from Section 404.

John W. White, Director of the SEC’s Division of Corporation Finance, said, “Over the past few years, the Commission and PCAOB have committed extensive resources to improving the efficiency and cost-effectiveness of the implementation of Section 404’s requirements, particularly for smaller companies. I am optimistic that this study of real-world data will help further inform our efforts to improve the implementation of SOX 404.”

TheSecurity Exchange Commissionstaff’s cost-benefit study will help determine whether the new management guidance on evaluating the internal controls over financial reporting issued by the Commission in June 2007 and the Public Company Accounting Oversight Board’s (PCAOB) Auditing Standard No. 5 approved by the Commission in July 2007 are having the intended effect of facilitating more cost-effective internal control evaluations and audits of smaller reporting companies. The study includes gathering new data from a broad array of companies about the costs and benefits of compliance with the Section 404 requirements. The study also pays special attention to those smaller companies that are complying for the first time with the requirements that are currently in effect.

Section 404 has two provisions: 404(a) requires company management to assess the effectiveness of the company’s internal controls over financial reporting, while 404(b) requires an auditor attestation on management’s assessment. Larger companies, comprising more than 95 percent of the market capitalization of U.S equity securities markets, have been subject to both provisions since 2004.

The extension of the Section 404(b) compliance date for smaller companies is the latest in a series of Commission efforts to help reduce unnecessary compliance costs for smaller companies while preserving important investor protections. In 2007, theSecurity Exchange Commissionissued new guidance for management’s Section 404 assessment to help companies focus their reviews on the internal control issues that matter most to investors. Companies of all sizes, including smaller companies, are filing their first 404(a) reports this year with the benefit of the new guidance. Furthermore, theSecurity Exchange Commissionand the PCAOB voted unanimously to replace the standard for the 404(b) auditor attestation, which is intended to make the process more efficient. This year, larger companies are filing their first 404(b) reports under the new audit standard.

The full text of the final amendments for the extension of the auditor attestation requirement for smaller companies will be posted to theSecurity Exchange CommissionWeb site as soon as possible. The amendments will take effect 60 days after the release is published in the Federal Register.

http://www.sec.gov/news/press/2008/2008-116.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-117

Washington, D.C., June 20, 2008 — The Securities and Exchange Commission announced today that it will host a roundtable on July 9, 2008, to facilitate an open discussion of the benefits and potential challenges associated with existing fair value accounting and auditing standards.

“This roundtable will provide an excellent opportunity for investors, preparers, auditors, regulators and other interested parties to provide the Commission and other observers with input into the usefulness of fair value accounting in the current marketplace,” saidSecurity Exchange CommissionChief Accountant Conrad Hewitt.

The roundtable will be organized as two panels. The first panel will discuss fair value accounting issues from the perspective of larger financial institutions and the needs of their investors. The second panel will discuss the issues from the perspective of all public companies, including small public companies, and the needs of their investors.

The panels will include investors, preparers, auditors, regulators and other interested parties. Additionally, representatives from the Financial Accounting Standards Board, International Accounting Standards Board and Public Company Accounting Oversight Board will be present as observers.

The panel discussions with focus on:

• the usefulness of fair value accounting to investors
• potential market behavior effects from fair value accounting
• practical experience and potential challenges in applying fair value accounting standards
• aspects of the current standards, if any, that can be improved
• experience with auditors providing assurance regarding fair value accounting

The roundtable will be held in the auditorium at the SEC’s headquarters at 100 F Street, N.E., Washington, D.C. A final agenda including a list of participants and moderators will be announced at a future date. The roundtable will be open to the public with seating on a first-come, first-served basis. The roundtable discussions also will be available via webcast on theSecurity Exchange CommissionWeb site.

The Commission welcomes feedback regarding any of the topics to be addressed at the roundtable. The information that is submitted will become part of the public record of the roundtable. Submissions to the Commission may be provided by any of the following methods:

Electronic submission options:

• Use the Commission’s Internet submission form.
• Send an e-mail to rule-comments@sec.gov.

Paper submissions:

• Send paper submissions in triplicate to Florence E. Harmon, Acting Secretary of the Securities and Exchange Commission, 100 F Street, N.E., Washington, D.C. 20549-1090.

All submissions should refer to File Number 4-560. This file number should be included on the subject line if e-mail is used. To help process and review submissions more efficiently, please use only one method. The Commission will post all submissions on its Web site at www.sec.gov.

Please note that all submissions received will be posted without change. TheSecurity Exchange Commissiondoes not edit personal identifying information from submissions. Only information desired to be shared publicly should be submitted.

http://www.sec.gov/news/press/2008/2008-117.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-115

Washington, D.C., June 19, 2008 — The Securities and Exchange Commission today charged two former Bear Stearns Asset Management (BSAM) portfolio managers for fraudulently misleading investors about the financial state of the firm’s two largest hedge funds and their exposure to subprime mortgage-backed securities before the collapse of the funds in June 2007.

The SEC’s complaint alleges that when the hedge funds took increasing hits to the value of their portfolios during the first five months of 2007 and faced escalating redemptions and margin calls, then-BSAM senior managing directors Ralph R. Cioffi and Matthew M. Tannin deceived their own investors and certain institutional counterparties about the funds’ growing troubles until they collapsed and caused investor losses of approximately $1.8 billion.

The SEC’s action was conducted through its Enforcement Division’s subprime working group, which is aggressively investigating possible fraud, market manipulation, and breaches of fiduciary duty that may have contributed to the recent turmoil in the credit markets.

In a related criminal action today, the U.S. Attorney’s Office for the Eastern District of New York announced the indictment of Cioffi and Tannin on conspiracy and fraud charges.

“Hedge fund managers owe serious obligations to investors in their funds, and the Commission will be unyielding in its commitment to vigorous investor protection by enforcing the securities laws against them whenever warranted,” saidSecurity Exchange CommissionChairman Christopher Cox. “Hedge funds are by no means unregulated when it comes to fraud. Those who commit fraud at the expense of investors will always be the target of a relentless SEC.”

Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement, said, “Hedge fund managers remain subject to the same prohibitions against fraud as other market participants. When they choose to make public statements, they must not speak falsely or omit material information.”

Antonia Chion, Associate Director of the SEC’s Division of Enforcement, added, “Hedge fund managers cannot lie to their own investors as alleged here, simply because those investors happen to be more sophisticated than the general public. Particularly in times of poor performance or market difficulty, even sophisticated investors look to fund managers to speak truthfully to them.”

According to the SEC’s complaint, filed in the U.S. District Court for the Eastern District of New York, the Bear Stearns High-Grade Structured Credit Strategies Fund and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Fund collapsed after taking highly leveraged positions in structured securities based largely on subprime mortgage-backed securities. Cioffi acted as senior portfolio manager and Tannin acted as portfolio manager and chief operating officer for the funds, and they misrepresented the funds’ deteriorating condition and the level of investor redemption requests in order to bring in new money and keep existing investors and institutional counterparties from withdrawing money. For example, Cioffi misrepresented the funds’ April 2007 monthly performance by releasing insufficiently qualified estimates — based only on a subset of the funds’ portfolios — that projected essentially flat returns. Final returns released several weeks later revealed actual April losses of 5.09 percent for the High-Grade Structured Credit Strategies Fund and 18.97 percent for the High-Grade Structured Credit Strategies Enhanced Leverage Fund.

The SEC’s complaint alleges that Cioffi and Tannin also misrepresented their funds’ investment in subprime mortgage-backed securities. Monthly written performance summaries highlighted direct subprime exposure as typically about 6 to 8 percent of each fund’s portfolio. However, after the funds had collapsed, the BSAM sales force was ultimately told that total subprime exposure — direct and indirect — was approximately 60 percent.

TheSecurity Exchange Commissionfurther alleges that Cioffi and Tannin continually exaggerated their own investments in the funds while using their personal stake as a selling point to investors. Tannin repeatedly told investors, directly and through the Bear Stearns sales force, that he was adding to his own stake in the funds in order to take advantage of the buying “opportunity” presented by the funds’ losses. Tannin never actually added to his investment. He mocked as “silly” at least one investor who sought to redeem instead of following Tannin’s supposed example. Meanwhile, Cioffi redeemed $2 million, which was more than one-third of his personal investment in the funds at the end of March 2007. Cioffi transferred it to another BSAM fund that he described as “short sub prime,” which he knew was profitable at the time.

The Commission alleges in its complaint that Cioffi and Tannin violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In its complaint, the Commission seeks permanent injunctive relief, disgorgement of all illegal profits plus prejudgment interest, and the imposition of civil monetary penalties.

The Commission appreciates the cooperation of the U.S. Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation, which conducted a separate, parallel investigation.

The Commission’s investigation is continuing.

# # #

For more information, contact:

Daniel Chaudoin
Assistant Director, SEC’s Division of Enforcement
(202) 551-4952

John Worland, Jr.
Assistant Chief Litigation Counsel, SEC’s Division of Enforcement
(202) 551-4438

http://www.sec.gov/news/press/2008/2008-115.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-112

Washington, D.C., June 18, 2008 — The world’s securities authorities — represented by IOSCO, as well as the European Commission, the Japan Financial Services Agency and the U.S. Securities and Exchange Commission, the securities authorities in the world’s three largest capital markets — welcome the upcoming roundtable organized by the IASCF regarding the creation of an IASCF Monitoring Group. The IASCF is the private foundation that provides public interest oversight to the International Accounting Standards Board (IASB), which promulgates IFRS.

The IASCF Monitoring Group will provide for organized interaction between national authorities responsible for the adoption or recognition of accounting standards for listed companies and the IASCF.

U.S. Securities and Exchange Commission Chairman Christopher Cox, IOSCO Executive Committee Chairperson Jane Diplock, Financial Services Agency of Japan Commissioner Takafumi Sato, and European Internal Market and Services Commissioner Charlie McCreevy stated:

“We are pleased at the progress being made in advancing interaction between securities authorities and the IASCF. The increased adoption and use of IFRS in capital markets around the world necessitates strengthening the accountability of the Foundation to the authorities responsible for setting financial disclosure requirements by public companies. In organizing the upcoming roundtable, the Foundation acknowledges the need to create a mechanism for interaction between securities authorities and the IASCF that approximates the historical relationship between securities authorities and national standard setters. This, in turn, will enable securities authorities that allow or mandate the use of IFRS to discharge their mandates relating to investor protection, market integrity and capital formation effectively.”

Securities authorities have been consulting with the IASCF Trustees regarding the IASCF’s Constitution review and revision. As part of the contemplated change, the IASCF Monitoring Group would participate in the selection and approval of IASCF Trustees and the IASCF Trustees would regularly report to the IASCF Monitoring Group on their oversight of the IASB. The IASCF Monitoring Group’s role will be expressly designed to ensure the independence of the IASB, while reinforcing the public interest oversight provided by the IASCF Trustees. The securities authorities also look forward to further engagement with the IASCF on governance matters, as the Constitution review progresses towards improving its public accountability.

On June 19, representatives of IOSCO, the U.S. Securities and Exchange Commission, Japan Financial Services Agency, and European Commission will participate in the IASCF Roundtable regarding the IASCF Constitution Review and look forward to hearing views expressed.

http://www.sec.gov/news/press/2008/2008-112.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-113

Washington, D.C., June 18, 2008 — Securities and Exchange Commission Chairman Christopher Cox today named Donald M. Hoerl as the Acting Regional Director of the SEC’s Denver Regional Office.

The Regional Director position recently became vacant when George Curtis, the previous head of the Denver office, was appointed to a Deputy Director position in the SEC’s Division of Enforcement in Washington, D.C. The Denver office conducts examination and enforcement activities in Colorado, North Dakota, Kansas, South Dakota, Wyoming and New Mexico.

Mr. Hoerl currently serves as the Associate Regional Director for Enforcement in the Denver Regional Office, a position he has held since 1997. He will continue to carry out the responsibilities of that position during his tenure as Acting Regional Director.

Mr. Hoerl said, “I am pleased that Chairman Cox has asked me to lead the Denver Regional Office until a permanent Regional Director is named. I feel very fortunate to have this opportunity and to be able to continue to work closely with the very talented staff in the Denver Regional Office.”

Mr. Hoerl began his career with the Commission in 1982 in the Denver office as a trial counsel. He has also served as District Administrator of the SEC’s Philadelphia office for four years, and as the District Administrator of the SEC’s Salt Lake office for six years. Before joining the SEC, Mr. Hoerl was an Assistant United States Attorney in Denver for more than five years. He received his B.A. degree from the University of California, Los Angeles and his JD degree from the University of Colorado School of Law.

http://www.sec.gov/news/press/2008/2008-113.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-114

Washington, D.C., June 18, 2008 — The Securities and Exchange Commission today distributed more than $103 million to investors who lost money because of mutual fund market timing and late trading involving Banc of America Capital Management LLC (BACAP) and several of its affiliates.

The distribution is the first in a series that will return approximately $375 million to more than 1.5 million harmed investors and more than 525 affected funds as part of the Commission’s 2005 settlement with BACAP, BACAP Distributors LLC, and Banc of America Securities LLC. The firms had been charged with facilitating market timing and late trading in Nations Funds mutual funds and others.

“Today’s distribution demonstrates the Commission’s commitment to returning money from wrongdoers to investors under the Fair Fund provisions of the Sarbanes-Oxley Act of 2002,” said Dick D’Anna, Director of the SEC’s new Office of Collections and Distributions. “Our new office has been working to cut red tape and administrative costs and enhance the Commission’s increasing success at using our new authority to provide financial relief to investors harmed by market timing or any other unlawful conduct in our markets.”

The Sarbanes-Oxley Act gave theSecurity Exchange Commissionnew authority to distribute financial penalties paid by securities law violators directly to injured investors. Using this authority, theSecurity Exchange Commissionalready has distributed more than $3.9 billion in Fair Funds. Earlier this year, theSecurity Exchange Commissioncreated the new office to further expedite Fair Fund distributions to harmed investors.

Today’s distribution went to more than 130,000 harmed investors in the Nations Funds and more than 380 unaffiliated mutual funds. Kay Lackey, Associate Regional Director of the SEC’s New York Regional Office, said, “We are very pleased to begin the distribution of the Banc of America Fair Fund to investors harmed by market timing misconduct. This distribution further demonstrates the Commission’s commitment to use disgorgement and penalties from those who violate the securities law to return money to injured investors.”

TheSecurity Exchange Commissionbrought and settled public administrative and cease-and-desist proceedings in 2005 against BACAP, BACAP Distributors and BAS. Each consented to a Commission Order charging anti-fraud violations without admitting or denying the Commission’s findings. The Commission ordered the respondents to pay $250 million in disgorgement and $125 million in civil penalties for distribution through a Fair Fund. In addition to disgorgement and civil penalties, the respondents also consented to a cease-and-desist order and a censure, and agreed to undertake certain compliance and mutual fund governance reforms.

The Fair Fund Administrator responsible for distribution is Rust Consulting, Inc. Investor questions regarding the distribution may be directed to Rust at (866) 730-8148. Information regarding the distribution can also be obtained at http://www.BankofAmericaFairFund.com.

# # #

Additional materials:

Distribution Plan:
http://www.sec.gov/litigation/admin/2007/34-57048-dp.pdf

Order Approving the Distribution Plan:
http://www.sec.gov/litigation/admin/2007/34-57048.pdf

February 9, 2005 Order Instituting Administrative and Cease-and-Desist Proceedings:
http://www.sec.gov/litigation/admin/33-8538.htm

For more information, contact:

Kay Lackey, Associate Regional Director
Gerald Gross, Assistant Regional Director
SEC’s New York Regional Office
(212) 336-1100

http://www.sec.gov/news/press/2008/2008-114.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-111

Washington, D.C., June 12, 2008 — The Securities and Exchange Commission’s Division of Corporation Finance and Office of the Chief Accountant announced today that they have prepared for the Commission’s consideration recommendations for updating and modernizing the reporting requirements for oil and gas companies.

The Commission’s reporting requirements concerning oil and gas reserves were adopted more than 25 years ago. The recommendations that theSecurity Exchange Commissionstaff are providing to the Commission reflect the significant changes in the oil and gas industry since adoption of the original reporting requirements, including improved technology and alternate resources. Among other things, the recommended proposals would allow oil and gas companies to provide investors with additional information about their oil and gas reserves.

TheSecurity Exchange Commissionstaff’s recommendations were preceded by a Concept Release issued by the Commission on Dec. 12, 2007, in which the Commission solicited comment on whether changes in the reporting requirements were needed and appropriate. The Commission received approximately 80 comment letters, which were generally supportive of updating the reporting requirements to reflect the changes that have taken place in the industry since adoption of the present requirements. The commenters, in addition to providing support for updating the reporting requirements, also provided a great deal of very helpful input about the specific types of updates needed. The staff considered this input carefully in developing the recommendations for the Commission.

“I am very pleased to be providing the Division’s recommendations to the Commission to update our reporting requirements applicable to oil and gas companies,” said John White, Director of the SEC’s Division of Corporation Finance. “In the decades since adoption of the current requirements, there have been tremendous changes in the way reserves are measured and oil and gas companies do business, which are not yet reflected in our rules. The comments we received on last year’s Concept Release were very helpful to us in developing our recommendations to the Commission, and I look forward to the further input we will receive on any proposals issued by the Commission.”

Conrad Hewitt,Security Exchange CommissionChief Accountant, said, “This is obviously an important initiative by the staffs of the Division of Corporation Finance and the Office of the Chief Accountant. We are very interested in obtaining feedback from investors as to their views on whether the proposed rules will provide them with the information they need.”

Issuance of a rule proposal by the Commission based on staff recommendations would require Commission approval, followed by a public comment period.

http://www.sec.gov/news/press/2008/2008-111.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-110

Chairman Cox Discusses Credit Rating Agency Reforms:
Windows Media Player (43 MB)
QuickTime (63 MB)

Washington, D.C., June 11, 2008 — The Securities and Exchange Commission today voted to formally propose a comprehensive series of credit rating agency reforms to bring increased transparency to the ratings process and curb practices that contributed to recent turmoil in the credit markets.

“The events of recent months have had a profound effect on our economy and our markets, and they have galvanized regulators and policymakers not only in this country but around the world to re-examine every aspect of the regulatory framework governing credit rating agencies,” saidSecurity Exchange CommissionChairman Christopher Cox. “This package of proposed rules would foster increased transparency, accountability, and competition in the credit rating agency industry for the benefit of investors.”

Erik Sirri, Director of the SEC’s Division of Trading and Markets, said, “The rules proposed today are designed to improve investor understanding of credit ratings through enhanced disclosure of NRSRO methods and performance data, and to promote investor confidence in credit ratings by minimizing conflicts of interest.”

The proposed rulemaking continues the implementation of new regulatory authority that theSecurity Exchange Commissionrecently received from Congress to register and oversee nationally recognized statistical rating organizations (NRSROs). Since its authority went into effect in September 2007, theSecurity Exchange Commissionhas rigorously applied its new oversight to examine how credit ratings have been created and disseminated. Informed by these ongoing examinations as well as input from international regulatory organizations studying these issues and the Congressional committees responsible for the recent Credit Rating Agency Reform Act, the Commission has proposed this package of rules that would regulate the conflicts of interests, disclosures, internal policies, and business practices of credit rating agencies.

The regulatory program established by Congress through the Credit Rating Agency Reform Act allows theSecurity Exchange Commissionto promulgate rules regarding public disclosure, recordkeeping and financial reporting, and substantive requirements designed to ensure that NRSROs conduct their activities with integrity and impartiality. These additional proposed rules supplement initial rules implemented by the Commission under the Act in June 2007.

The Commission is proposing the rulemaking in three parts, with the first two portions being proposed today and the third portion to be considered on June 25.

The first part of the Commission’s rule proposal would:

• Prohibit a credit rating agency from issuing a rating on a structured product unless information on assets underlying the product was available.

• Prohibit credit rating agencies from structuring the same products that they rate.

• Require credit rating agencies to make all of their ratings and subsequent rating actions publicly available. This data would be required to be provided in a way that will facilitate comparisons of each credit rating agency’s performance. Doing this would provide a powerful check against providing ratings that are persistently overly optimistic, and further strengthen competition in the ratings industry.

• Attack the practice of buying favorable ratings by prohibiting anyone who participates in determining a credit rating from negotiating the fee that the issuer pays for it.

• Prohibit gifts from those who receive ratings to those who rate them, in any amount over $25.

• Require credit rating agencies to publish performance statistics for 1, 3, and 10 years within each rating category, in a way that facilitates comparison with their competitors in the industry.

• Require disclosure by the rating agencies of the way they rely on the due diligence of others to verify the assets underlying a structured product.

• Require disclosure of how frequently credit ratings are reviewed; whether different models are used for ratings surveillance than for initial ratings; and whether changes made to models are applied retroactively to existing ratings.

• Require credit rating agencies to make an annual report of the number of ratings actions they took in each ratings class, and require the maintenance of an XBRL database of all rating actions on the rating agency’s Web site. That would permit easy analysis of both initial ratings and ratings change data.

• Require the public disclosure of the information a credit rating agency uses to determine a rating on a structured product, including information on the underlying assets. That would permit broad market scrutiny, as well as competitive analysis by other rating agencies that are not paid by the issuer to rate the product.

• Require documentation of the rationale for any significant out-of-model adjustments.

The second part of the Commission’s proposal would require credit rating agencies to differentiate the ratings they issue on structured products from those they issue on bonds, either through the use of different symbols, such as attaching an identifier to the rating, or by issuing a report disclosing the differences between ratings of structured products and other securities.

The third set of recommendations for the Commission’s proposal, to be considered on June 25, are being designed to ensure that the role theSecurity Exchange Commissionhas assigned to ratings in its rules is consistent with the objective of having investors make an independent judgment of risks and of making it clear to investors the limits and purposes of credit ratings for structured products.

Public comments on today’s proposed amendments and rule must be received by the Commission within 30 days after their publication in the Federal Register.

* * *

The full text of the rule proposal will be posted to theSecurity Exchange CommissionWeb site as soon as possible.

# # #

http://www.sec.gov/news/press/2008/2008-110.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-109

Washington, D.C., June 5, 2008 — Securities and Exchange Commission Chairman Christopher Cox today made the following statement in connection with today’s announcement by New York State Attorney General Andrew Cuomo regarding an agreement reached with three credit rating agencies:

“Today’s announcement stands as an excellent example of how state and federal authorities can work together in a complementary manner. I am most appreciative of the efforts of Attorney General Cuomo and his staff to consult with the Commission and coordinate their efforts in a way that is consistent with the Commission’s pending rulemaking for credit rating agencies. The Attorney General’s actions, as well as the comprehensive new rules for all nationally registered credit rating agencies that the Commission will consider next week, are motivated by our mutual desire to promote ratings with integrity and curb the questionable practices that contributed to the credit market turmoil.”

http://www.sec.gov/news/press/2008/2008-109.htm

Source: SEC site

FOR IMMEDIATE RELEASE
2008-107

Washington, D.C., June 4, 2008 — Securities and Exchange Commission Chairman Christopher Cox today announced that Steven B. Harris has been appointed to the Public Company Accounting Oversight Board (PCAOB).

Mr. Harris, a former long-time Senate Banking Committee official who played a key role in the legislation that created the PCAOB, was unanimously selected by the Commission to fill a recent vacancy on the Board. He will assume his position on June 9.

The PCAOB, established by the Sarbanes-Oxley Act of 2002, oversees the audits of the financial statements of public companies through registration, standard-setting, inspection and disciplinary programs. Under the Act, theSecurity Exchange Commissionselects the PCAOB chairman and board members after consultation with the Department of Treasury and the Federal Reserve Board.

“Steve Harris’s background as an expert in financial services regulation, together with his reputation as a thoughtful and knowledgeable champion of investors’ interests, make him an excellent choice for this important position,” said Chairman Cox. “His leadership of the Senate Banking Committee staff under former Chairman Paul Sarbanes, as well as his private sector experience, have well prepared him to serve as a PCAOB board member.”

Mr. Harris said, “I am greatly honored by the confidence shown in me by the Securities and Exchange Commission and I look forward to working with my colleagues at the PCAOB to protect the interest of investors in U.S. markets.”

Mr. Harris is currently Senior Vice President and Special Counsel for APCO Worldwide, where he advises clients on matters relating to financial transactions, corporate governance, crisis management, investigations, foreign investment, trade promotion, and government affairs.

Previously, Mr. Harris served as a Staff Director and Chief Counsel of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, a position he held for more than 15 years. He also served as a Staff Director and Chief Counsel to the Securities Subcommittee. He worked on all of the legislation, investigations, and oversight conducted by the Committee from 1981 to 2007.

Mr. Harris was Counsel to Senator Donald W. Riegle, Jr. from 1979-1981. He served as Counsel to Congresswoman Barbara Jordan and as a representative to the National Commission for the Review of Antitrust Laws and Procedures from 1978 to 1979. He graduated with honors from Dartmouth College and earned an LL.B. from George Washington University.

http://www.sec.gov/news/press/2008/2008-107.htm

Source: SEC site