(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

Public Company Accounting Oversight Board Members Named

The SEC has announced the members of the new Public Company Accounting Oversight Board. William H. Webster, a former federal appellate judge and a former director of the FBI and the CIA will serve as chairman of the panel. Other members include Kayla J. Gillan, Daniel L. Goelzer, Willis D. Gradison Jr., and Charles D. Niemeier.

The board, established by the Sarbanes-Oxley Act of 2002, will oversee the audits of the financial statements of public companies through rigorous registration, standard setting, inspection and disciplinary programs. The act requires the Commission, in consultation with the Secretary of Treasury and the chairman of the Federal Reserve Board, to select the members of the Board. According to the SEC, the agency received approximately 450 nominations and applications for the five available positions. SEC Chairman Harvey L. Pitt stated that " the individuals selected to serve on the board clearly meet and exceed all the requirements in the act." He added that " they are individuals of high integrity and reputation who have demonstrated a commitment to serving the interests of investors, and they understand the financial reporting process, they are each committed to meaningful reform and they bring to the board a combination of investor advocacy, regulatory and legal experience."

Chairman Webster has served as a judge of the 8th U.S. Circuit Court of Appeals. He served as director of the FBI under President Carter and headed the CIA under President Reagan. He also has served as chairman of the American Bar Association's Corporation, Banking and Business Law Section. He is currently a partner in the law firm of Milbank, Tweed, Hadley & McCloy LLP in Washington, D.C. Chairman Webster's term will expire in 2007.

Board member Daniel L. Goelzer, appointed to a four-year term, previously served as SEC general counsel from 1983 to 1990. He is currently a partner in the Washington, D.C., office of Baker & McKenzie, where he concentrates on securities law and financial institution regulation. He is the author of several articles on matters related to corporate governance and the securities laws.

Kayla J. Gillan, former chief legal adviser to the California Public Employees' Retirement System, was appointed to a term which will expire in 2005. She currently serves as vice president of Independent Fiduciary Services.

Willis D. Gradison, Jr., a former member of the House of Representatives from Ohio, was named to a two-year term. He has been the chairman of the Federal Home Loan Bank of Cincinnati, an investment broker and corporate director. Since leaving Congress, he has been president of the Health Insurance Association of America and is currently the senior public policy counselor at the Washington, D.C., law firm of Patton Boggs.

Charles D. Niemeier, chief accountant in the SEC's Division of Enforcement, will serve a one-year term. He is also the co-chairman of the Commission's Financial Fraud Task Force. He is an attorney and a certified public accountant and has legal and public accounting experience dealing with complex accounting, auditing and financial reporting issues.