(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.)

Two Commissioners Dissent from Audit Board Selections

The SEC approved the selection of William Webster to serve as chairman of the new Public Company Accounting Oversight Board by a 3-2 vote, and approved the selection of the four other members of the board by a vote of 4-1, on October 25, 2002 (see FEDERAL SECURITIES LAW REPORTS No. 2049, October 30, 2002) . SEC Commisioners Harvey L. Goldschmid and Roel C. Campos voted against the selection of Mr. Webster to serve as chairman.

Commissioner Goldschmid, who also voted against the other nominees, described the selection process as "flawed" and stated that he was "deeply saddened by the harm the Commission's selection process for the Oversight Board has done to this agency." Commissioner Campos, who voted to approve the other nominees, stated that "it is not right that the Oversight Board should be born with the scar of its members having been subjected to the approval of the accounting lobby." He added that " it is not right that the Commission should put itself in this position of creating doubts about its integrity and its motives."

The complete remarks of both commissioners may be found on the SEC's Web site at www.sec.gov.