FOR IMMEDIATE RELEASE                                    2000-158

            SEC Chairman Levitt Asks Congress Not to
      Intervene in Auditor Independence Rulemaking Process
                                
     Washington, DC, October 17, 2000 - Securities and Exchange
Commission Chairman Arthur Levitt late yesterday sent a letter to
numerous Members of Congress asking that they not intervene in
the Commission's auditor independence rulemaking process.  The
letter was sent to House and Senate leadership, Members of the
House and Senate Appropriations Committees, Members of the Senate
Banking Committee, and Members of the House Commerce Committee.
The text of the letter follows.

                          *  *  *  *  *

October 16, 2000

     As you know, the Securities and Exchange Commission is
currently considering an important rulemaking regarding the
independence of this country's accounting profession.  The
controversy surrounding this initiative, unfortunately, extends
beyond the substance of the proposed rule and threatens to impede
the independence of an agency whose fundamental mission is to
protect investors.
     
     More often than not, people on both sides of an issue have
honorable and deeply held disagreements.  The debate over this
rulemaking is no different in that respect.  But, circumventing,
for the first time, a process that has served our markets and
this country's investors for more than 65 years will not solve or
even meaningfully address these points of contention.
     
     Last month, after weeks of discussions with the Commission's
staff, both PricewaterhouseCoopers and Ernst & Young put forth
language that they believe will improve the SEC's rule proposal.
I regard their submission as constructive and thoughtful and one
that I expect will affect the Commission's thinking as it moves
towards consideration of a final rule. As with all the
Commission's rulemakings, the final rule will reflect the
important comments and ideas of the public.  After four days of
public hearings and 3,000 comment letters, the Commission has
heard and read much of what people believe is right and wrong
with our proposed rule.
     
     Under the rule proposal and the submission by PwC and E&Y,
firms would still be able to provide consulting services to non-
audit clients.  This is where they derive the overwhelming
majority of their non-audit revenue.  The proposal also does not
prohibit most of the services auditors perform for their audit
clients.  Rather, it identifies ten services that impair
independence, most of which are already prohibited under current
profession and SEC rules.
     
     We stand ready to work with those with misgivings about the
Commission's initiative.  In recent days, we have been meeting
with members of the other Big 5 firms to listen and exchange
views about our rule proposal. These discussions have been
productive, and I believe that we will continue to make progress
as long as we all stay at the table.
     
     I ask, however, that regardless of what happens, you will do
what you can to ensure that the voice of the Commission - a voice
that speaks solely and consistently in the protection of the
public interest - is not silenced.  Intervention in the
Commission's customary regulatory processes would set an
unfortunate precedent that could undermine the SEC's ability to
carry out the mission Congress entrusted it to achieve.

     Sincerely,
     
     Arthur Levitt