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September 25, 2007
HP-575

PWG Announces Private Sector Groups
to Address Market Issues for Private Pools of Capital

Washington - The President's Working Group on Financial Markets announced the chairs, members and mission statements for two private sector committees, one comprised of investors and the other comprised of asset managers.  These private sector committees will assess and foster a private sector dialogue on issues of significance to their industry and the market.  The first task of the committees will be to develop best practices using the PWG's principles-based guidance released in February.  The committees will create and publicly release the best practices so market participants may enhance investor protection and systemic risk safeguards consistent with the PWG principles and guidelines.  

"These groups are drawn from among the industry's finest in their respective areas," said Treasury Secretary and PWG Chairman Henry M. Paulson, Jr. "The market will benefit if experienced participants develop and implement best practices."

The President's Working Group is encouraging market participants to move beyond the status quo as they work to strengthen market discipline.  The committees represent a milestone toward a more competitive U.S. marketplace with the world's highest standards for protecting investors and safeguarding against systemic risks.

Russell Read, Chief Investment Officer of the California Public Employees Retirement System, will serve as the chair of the Investors' Committee.  Eric Mindich, CEO of Eton Park Capital Management, will serve as the chair of the Asset Managers' Committee.

The PWG and the committee chairmen sought a broad range of experienced members, listed below, to participate on the Committees. The Investors' Committee includes representatives from labor organizations, endowments, foundations, corporate and public pension funds, investment consultants, and non-U.S. investors.  The Asset Managers' Committee includes representatives from a diverse group of hedge fund managers representing many different strategies.

The groups will make the best practices available for public comment before they are finalized.

The PWG first discussed the establishment of these groups in June, with the announcement of the second stage of Treasury's capital markets competitiveness plan.  The PWG created the groups to complement the work underway between the global regulators and the financial institutions they regulate that serve as creditors, lenders and counterparties to these private pools of capital.

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