[Congressional Record Volume 147, Number 17 (Wednesday, February 7, 2001)]
[Senate]
[Pages S1097-S1098]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 ARTHUR LEVITT: THE INVESTORS' ADVOCATE

  Ms. COLLINS. Mr. President, I rise today to recognize the remarkable 
public service of the Honorable Arthur M. Levitt, Chairman of the 
Securities and Exchange Commission, the longest-

[[Page S1098]]

serving chairman in the history of the SEC. Mr. Levitt will be 
departing the Commission soon with a proud legacy of accomplishment--a 
legacy that has made his tenure as Chairman one of extraordinary 
distinction as well as one of unusual duration.
  Correctly seeing his position as a stewardship for the public good, 
Chairman Levitt has consistently set aside partisan concerns to 
advocate tirelessly on behalf of the individual investor. He has also 
implemented changes that have strengthened the public's trust in U.S. 
securities markets.
  Chairman Levitt was first appointed to a five-year term in 1993, and 
was reappointed in 1998. No stranger to economic issues and the 
American securities market, he previously had served as Chairman of the 
New York City Economic Development Corporation, as well as Chairman of 
the American Stock Exchange. In addition, Mr. Levitt owned a newspaper 
that is very familiar to those of us who work on Capital Hill: Roll 
Call.
  During his eight-year tenure, Chairman Levitt has consistently worked 
to deliver the important message that investors must use the increasing 
amounts of information available to them to do more research before 
investing. He traveled extensively across the country to spread this 
message, holding 43 Investors' Town Meetings. At these events, Chairman 
Levitt took pains personally to educate investors about their rights 
and their obligations, while giving them the tools they need to invest 
wisely and to protect themselves from securities scams.
  On one particularly memorable occasion in 1998, Chairman Levitt was 
scheduled to speak at an Investor's Town Meeting in Bangor, Maine. When 
bad weather thwarted his efforts to reach Bangor and the nearly 600 
Maine citizens awaiting him, Chairman Levitt improvised, answering all 
of the questions from the audience by phone in what may have been the 
biggest conference call in the history of the State. In Maine, we truly 
appreciate a person's ability to overcome the elements.
  Chairman Levitt also brought his expertise to Capitol Hill, 
testifying in 1997 before the Permanent Subcommittee on Investigations, 
which I chair, about problems in the micro-cap markets--including penny 
stock fraud--and providing investors valuable insights on how to avoid 
falling victims to the predators who lie in wait for the unwary. 
Chairman Levitt testified before my Subcommittee again in 1999, this 
time on the risks associated with day trading. Investor alertness and 
diligence have been his watchwords, and his advice in this regard has 
been consistently sound.
  A strong proponent of technological advances, Chairman Levitt worked 
to promote the use of technology not only in securities transactions, 
but also in helping inform and educate investors through the Internet. 
Under his guidance, the SEC's first Web site went online in 1995. 
Today, it provides valuable information and services--including access 
to the Electronic Data Gathering Analysis and Retrieval database (also 
known as ``EDGAR''), which contains a large volume of information about 
public companies, including corporate annual reports filed with the SEC 
and disclosures of purchases and sales by corporate insiders. The SEC's 
Web site also has an Investor Education and Assistance service, which 
advises investors on how to invest wisely and avoid fraud, answers the 
public's questions, and reviews investors' complaints.
  Chairman Levitt has truly been a man for his time. With Americans 
flocking to take part in what has been the longest bull market in U.S. 
history, he championed the right of the small investor to a level 
playing field with the big institutions. Last year, for example, the 
SEC approved the adoption of a regulation on Fair Disclosure, which 
requires companies to disclose material, nonpublic information--such as 
earnings results and projections--simultaneously to Wall Street 
analysts and the public. This new regulation makes significant strides 
toward bringing individual investors into the information ``loop'' on a 
timely basis.
  In addition, Chairman Levitt oversaw the SEC's adoption in 1998 of 
the Plain English Rule, which requires that public companies and mutual 
funds prepare the cover page, summary, and risk factor portions of 
their prospectuses in clear, concise, and understandable English. The 
Plain English Rule finally makes prospectuses accessible to those 
outside the small circle of securities lawyers and market professionals 
accustomed to reading them.
  Chairman Levitt has worked to ensure that the small investor gets the 
best available price. In 1997, the SEC adopted its Order Handling Rule, 
which places individual investors' bids on an equal footing with those 
of professional traders on the NASDAQ. This Rule is designed to prevent 
collusion among dealer and to promote competition in the market. At the 
same time, Chairman Levitt has overseen the SEC's vigorous efforts to 
root out Internet securities fraud and bring the perpetrators to 
justice.
  Protecting investors' rights and rooting out securities fraud have 
long been among my primary interests, and I have been both delighted 
and very fortunate to be able to work toward these ends with an SEC 
Chairman who shares a powerful commitment to these goals. Mr. 
President, while small investors are losing a true friend at the SEC, I 
am confident that the benefits he brought them will endure for many 
years to come.
  Mr. President, I wish to thank Chairman Levitt for shepherding the 
securities market into the 21st Century, and ensuring that America's 
thriving markets are open to all investors, big and small, and are 
worthy of the public's confidence. I offer him my very best wishes for 
his future undertakings.
  The PRESIDING OFFICER. The Senator from Oklahoma is recognized.

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