On October 19, 2007 S.E.C. Commissioner Annette Nazareth spoke at the Los Angeles County Bar Association 40th Annual Securities Regulation Seminar. In her comments, she outlines her thoughts on the some of the steps the S.E.C. are currently taking:
“First, it should come as no surprise that we are focusing on the role of credit rating agencies in the development of structured finance products, how investors use credit ratings, and how securitization has changed the mortgage industry and related business practices. Much of this examination will be conducted in cooperation with the members of the President’s Working Group on Financial Markets, including the Treasury, Federal Reserve Board, and the CFTC.”
“Second, we have been spending a good deal of time reaching out to the major participants in the markets that we regulate, most notably to the Consolidated Supervised Entities, or “CSEs.” The CSEs are the five largest securities firms that we supervise on a consolidated, or group-wide basis: Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch, and Morgan Stanley.”
To read all of Ms. Nazareth’s comments, click here.