During two closed sessions before the luncheon, committee members discussed the latest in financial regulation issues. At a luncheon briefing following these sessions, SFRC members gave several statements and answered questions.

End the government-sponsored cartel in credit ratings.

The Committee strongly supports the SEC Chairman Schapiro's commitment to base the agency's regulatory reaction on its professional judgment underpinned with careful empirical studies and not on accommodating political pressure.

The SEC should revoke its requirement that Nationally Recognized Statistical Rating Organizations must make the records of their rating actions public.

The conceptual deficiencies of the fair value accounting theory make it a poor choice for most companies as an accounting standard.

Awritten comment submitted to the Securities and Exchange Commission with regard to oversight of credit rating agencies, File No. S7-04-07.

Proposed rule for Management"s Report on Internal Control over FinancialReporting (File No. S7-24-06).

Statement to the U.S. Securities and Exchange Commission on addressing the problems of Sarbanes-Oxley Section 404 that cause excessive and wasteful expense, bureaucracy and paperwork.