August 10,2009

Press Contact:

Jill Kozeny, 202/224-1308

Jill Gerber, 202/224-6522

Grassley Comment on SEC Chairman Response on Pequot Investigation, Enforcement Problems

Sen. Chuck Grassley today made the following comment on a response from Securities and Exchange Commission Chairman Mary Schapiro in response to his inquiry on enforcement concerns.

"For years, I've urged the SEC to change its culture and step up enforcement. If it's turning the corner culturally, better automated systems to show patterns of potential problems at individual firms will help enforcement. I'm glad Chairman Schapiro seems committed to better, more timely enforcement and improved automation in particular. Progress on automation has been too slow. The information to respond to my request still had to be gathered manually. Investigators at the SEC need more sophisticated tools to do their jobs effectively."