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	Press Releases November 06, 2003   LIEBERMAN SAYS NYSE CANNOT REGULATE ITSELF Praises Proposed Reforms But Calls For More   WASHINGTON - Responding to the announcement of the New York Stock Exchange’s proposed reforms, Governmental Affairs Committee Ranking Minority Member Joe Lieberman, D-Conn., said Thursday he was pleased the Exchange had taken steps to improve its corporate governance but he said the reforms fall far short of what is needed. Following the scandal surrounding the excessive pay package for the NYSE’s former Chairman and CEO, Dick Grasso, the NYSE Board fired Mr. Grasso and asked John Reed, former head of Citigroup, to serve as the interim Chairman and develop and institute reforms to the governance structure of the NYSE. Mr. Reed proposed those changes Wednesday, including a smaller board of independent directors, which would work with a larger advisory board comprised of representatives from member firms and listed companies. Mr. Reed did not propose splitting off the NYSE’s regulatory function. The NASD split off its regulatory arm two years ago. “A smaller board comprised of independent directors is a good first step,” said Lieberman. “But experience has shown that the NYSE does not and cannot effectively regulate itself from within. The regulatory arm should be separate. “Given what seems like a complete breakdown in enforcement at the NYSE, I am disappointed that Mr. Reed is suggesting the exchange should continue to police itself.” According to a recent Wall Street Journal account, the SEC blasted the NYSE in an October 10, 2003, confidential report that found that the exchange utterly failed to police the so-called “specialist” firms that trade the securities on the exchange. The report concluded that the NYSE ignored blatant violations by the specialist firms, failed to fully investigate improper conduct, and issued penalties that were so light that they had virtually no deterrence effect. The specialist firms have been accused of short-changing customers by self-interested and improper trading practices. “The New York Stock Exchange is an icon, a symbol of the power and integrity of American capitalism,” Lieberman said. “Its watchdog must be ever-vigilant and beyond reproach, not a lapdog pampered by wealthy insiders.” Lieberman has actively monitored and criticized the failures of market gatekeepers to protect the interests of the average investor. As Chairman of the Governmental Affairs Committee, he held a series of hearings in 2002 on the Enron scandal and issued two reports on the lapses of the federal government’s regulatory agencies in protecting investors and consumers from the losses associated with Enron’s collapse. More recently, he wrote Securities and Exchange Commission Chairman William Donaldson about the SEC’s failure to detect and prevent widespread malfeasance in the mutual fund industry. Lieberman has also cosponsored legislation to reform the industry. -30-   ###   Printable Version   « previous Press Release next Press Release »   1998 - 1999 - 2000 - 2001 - 2002 - 2003 - 2004 - 2005 - 2006 - 2007 November 2003 Press Releases October   |  December   --   2002   |  2004     November 25 - Waxman, Dingell, Lieberman Seek Investigations of Halliburton Gasoline Importations to Iraq   November 20 - Lieberman Troubled By “Unreasonable” White House Limits On 9/11 Commission Access To Key Documents   November 20 - Lieberman Calls August Blackout "Entirely Avoidable"   November 19 - Lieberman Urges Stronger Measure to Restore Investor Confidence in Mutual Funds   November 18 - Lieberman Says Tax Shelters Must Have Economic Substance To Deter Industry Built Around Tax Evasion   November 18 - Lieberman Supports Amendment Outlawing Senior Discount   November 13 - Lieberman Applauds Dodd/Corzine Plan   November 13 - NPS Employees Say Parks Are In Danger   November 13 - Iron Curtain Of Secrecy Around White House Must Be Raised   November 12 - Administration Fails To Certify Labs Using Anthrax, Smallpox   November 11 - Federal Poverty Calculations Mask True Economic Status of Most Vulnerable Citizens   November 7 - Lieberman, Durbin Press OIRA On Openness, Accountability   November 6 current Press Release   November 5 - Lieberman Calls on Halliburton to Refund American Taxpayers   November 5 - Lieberman: Mutual Fund Reform Bill is Important Step Toward Restoring Integrity to Embattled Industry   November 4 - Leading Senators Pressure President to Provide Key Documents Condemn White House's "Poor Record of Cooperation"   November 3 - Lieberman Demands Report on Simulation of Terorist Attack Analysis Details Shortcomings of Government Response   November 3 - Congress Votes to Name Hartford Post Office After Former US Rep Barbara B. Kennelly   November 3 - Lieberman Strafes SEC for Lax Oversight of Mutual Funds Middle Class Investors' Trust Abused all Over Again
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