Sen. Rod Grams, chairman of the Subcommittee on Securities of the Senate Banking, Housing, and Urban Affairs Committee, has announced that the subcommittee will conduct a hearing on fees collected under the Securities Act of 1933 and the Securities Exchange Act of 1934.

"At Wednesday's hearing, the Subcommittee will investigate just how excessive fee collections under the nation's securities laws have become and how these collections, originally authorized to fund the SEC budget but since diverted into general revenues, impact the financial markets and the economy," Grams said. "Although there is not a clear consensus on how to fix the problem, it is incomprehensible that in a time of budget surpluses, we are still collecting over a billion dollars in excess fees."

Sen. Phil Gramm, chairman of the Banking Committee, added, "What we've really seen is these fees become a revenue source for the government. Small companies that are trying to raise capital and create jobs end up paying taxes they ought not to pay."

WHEN: 10:00 a.m. Wednesday, March 24, 1999

WHAT: Subcommittee on Securities -- Hearing on SEC fees
WHERE: 538 Dirksen Senate Building
WHO:

Arthur Levitt
Chairman
Securities and Exchange Commission James McConnell
Executive Director
Securities and Exchange Commission

Mark Lackritz
President
Securities Industry Association (SIA)

Lee Korins
President and Chief Executive Officer
Securities Traders Association

Robert Seijas
Executive Vice President, Fleet Specialists
Co-President, Specialists Association

Andrew Cader
Senior Managing Director, Spears, Leeds & Kellogg
Vice President, Specialists Association