T O P   S T O R I E S

NASAA President`s Statement on Global Settlement of Issues of Conflict of Interest at Brokerage Firms

This agreement represents the dawn of a new day on Wall Street. Our goal and the goal of this agreement are simple: investors, not investment banking fees, come first.

Congress (notably Chairmen Oxley and Baker), the NASD, the New York Stock Exchange and the SEC had highlighted and were working on addressing the problem of analysts’ conflicts. The New York State Attorney General’s office investigation and the emails that it uncovered that really focused the attention of investors, the media and regulators. Over the last eight months, states have worked with the other regulators dividing the labor to conduct many investigations that involved the review of hundreds of thousands of documents. I want to commend my state and federal colleagues for their hard work and cooperation in reaching this historic settlement.

From the outset, state securities regulators have had three goals: change the way firms do business by putting investors, not investment banking, first; obtain meaningful penalties from those who betrayed investors’ trust, and arm investors who have been harmed with the information they need.

From the beginning, our goal was to work with the NASD, the New York Stock Exchange and, most importantly, the SEC on any new rules. We’ve done that and we will continue to do that.

These have been trying times for investors. Many of them are in financial shock. Many of them are confused. Many of them are mistrustful.

This historic settlement and the real changes it will bring will help restore faith in our markets which, even with their problems, remain the envy of the world.

Christine A. Bruenn
President
North American Securities Administrators Association
Maine Securities Administrator

Following is a link to the joint press release on the settlement, www.oag.state.ny.us/press/2002/dec/dec20b_02.html