FOR IMMEDIATE RELEASE 99-165 General Counsel Harvey Goldschmid to Leave Commission; Will Become Special Senior Advisor to Chairman Levitt Goldschmid Played Key Role in Strengthening Corporate Governance, Implementing Earnings Management Initiatives, and Preserving Investor Protections in Financial Modernization Bill Washington, DC, December 7, 1999 -- Securities and Exchange Commission General Counsel Harvey Goldschmid announced today that he is leaving the Commission and will resume his duties as Dwight Professor of Law at Columbia University. However, Mr. Goldschmid has agreed to continue his service to the Commission by becoming special senior advisor to Chairman Arthur Levitt. In that position, Mr. Goldschmid will consult and advise the Chairman and other Commissioners on various legal and policy issues on a part time basis, beginning January 1, 2000. Chairman Levitt said, "Harvey is a nationally recognized legal scholar, sage advisor, and superb advocate for the public interest. The Commission, the public, and I have been extremely well served by this thoughtful and modest man. I thank Harvey for leaving the private sector and academia to play a key role in the many fascinating and complex issues facing the Commission and the markets this past year and a half. Harvey's wise counsel and insight have been particularly invaluable in the areas of financial modernization and corporate governance. While I am sorry to lose an extraordinary General Counsel, I am thrilled that Harvey will provide expert guidance to the Commission in his new role as special senior advisor." Mr. Goldschmid said, "My tenure with the Commission has been enormously rewarding. On every personal and professional level, it has been a delight to work with Chairman Levitt, the Commissioners, and the staff. While I look forward to returning to the classroom, I am very pleased to be able to continue my association with the agency and with Chairman Levitt." Mr. Goldschmid, 59, took a leave of absence from Columbia University in May 1998 to become the top legal advisor to the Commission. As General Counsel, Mr. Goldschmid, a specialist in corporate governance and securities laws, was responsible for the daily operations of the Office of the General Counsel, advised the Commission on legal and policy issues, ensured that the Commission's policies were implemented throughout the agency, and represented the Commission in appellate court. During his tenure as General Counsel, Mr. Goldschmid was a leading voice in the effective implementation of the 1995 Private Securities Litigation Reform Act through various cases, personally arguing several of those matters on behalf of the Commission before the appellate courts. He also helped to implement the Commission's earnings management initiatives. Most recently, Mr. Goldschmid, along with Chairman Levitt, helped lead the effort on the financial services reform legislation that was adopted by Congress this fall. Mr. Goldschmid also played a key role in the Commission's efforts to strengthen and improve corporate governance. Among other things, he also was instrumental in the drafting and adoption of the Commission's proposing release on audit committee disclosure and of revised Commission Rule 102(e), which sets forth the applicable standards for determining whether accountants have engaged in improper professional conduct. The Commission named SEC Deputy General Counsel David Becker to succeed Mr. Goldschmid. (See News Release 99-166.) # # #