FOR IMMEDIATE RELEASE                                  98-72


      Barry P. Barbash, Nation's Top Mutual Fund Regulator,
         To Leave the Securities and Exchange Commission

     Washington D.C., August 5, 1998 -- Barry P. Barbash,
Director of the Securities and Exchange Commission's Division of
Investment Management, today announced that he will leave the
Commission in September to become a partner with the law firm of
Shearman & Sterling.  Mr. Barbash will operate the firm's
investment management practice out of its Washington, DC office.

     SEC Chairman Arthur Levitt said, "Barry has been an integral
part of my management team since I came to the Commission.  I
have turned to him for judgment and insight on virtually every
significant issue that has challenged us.  Barry's departure is a
great loss to the Commission and to me personally.  I will miss
his passion, intelligence, and wit."  Levitt added, "Five years
ago some people suggested that it would be difficult for an
industry lawyer such as Barry to be an effective overseer.  Not
surprisingly, Barry proved them wrong time and time again.  His
unswerving dedication to the integrity of the mutual fund
industry and the protection of investors manifested itself in
countless creative and effective measures.  Clearly, tens of
millions of investors are safer and better-informed because of
Barry's dedicated efforts."

     Mr. Barbash, 44, became Director of the Division of
Investment Management in September 1993 soon after Arthur Levitt
was confirmed as Chairman.  During his tenure as the principal
regulator of the investment management industry, Mr. Barbash led
numerous important SEC initiatives, including:

*  Improving Disclosure:  Improved mutual-fund fee and risk
  disclosure and disclosure of personal investing by fund managers,
  created the user-friendly fund profile, and overhauled the fund
  prospectus;

*  Modernizing Securities Laws:  Implemented provisions of the
  National Securities Markets Improvement Act of 1996 (NSMIA) that
  altered dramatically the regulation of the investment adviser and
  investment company businesses in the United States and
  fundamentally changed the way in which variable insurance
  products are regulated under the Federal securities laws; also
  was significantly involved in the development of the Commission's
  position on financial services reform legislation;

*  Expanding International Cooperation:  Worked closely with
  investment management regulators throughout the world to
  establish policy guidelines for the regulation of investment
  company operations and sales of fund shares;

*  Harnessing Technology:  Drafted interpretations of the
  securities laws to reflect technological advances, such as the
  Internet, affecting the business of funds and money managers;

*  Modernizing Investment Company Rules:  Revised numerous SEC
  rules to take into account the tremendous growth, innovation, and
  changes in the mutual fund business.


     In announcing his plans to leave the Commission, Mr. Barbash
said, "I will always look back with enormous satisfaction on my
tenure as Division Director.  It was one of the most challenging,
exciting, and rewarding parts of my legal career and my adult
life.  I will cherish the friendships I have made and will be
forever indebted to Chairman Levitt for giving me the opportunity
to work with so many bright, committed, and tireless colleagues."

     Mr. Barbash was named the Fund Leader of 1997 by Fund
Action.

     Prior to joining the SEC, Mr. Barbash was a partner with the
New York City law firm of Willkie Farr & Gallagher, where he
specialized in institutional investor law.  Prior to joining
Willkie Farr as an associate in 1981, he held staff attorney
positions with the SEC's Division of Investment Management and
the Plan Benefits Security Division of the Office of the
Solicitor of the U.S. Department of Labor, which administers the
Federal pension laws.

     Mr. Barbash holds a J.D. degree from the Cornell Law School
and an A.B. degree from Bowdoin College.  He is admitted to
practice in New York, Massachusetts, and the District of Columbia
and is a member of the New York, Massachusetts, District of
Columbia, and American Bar Associations.

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