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Post date: April 23 2002

Spitzer To Co-chair National Task Force Investigating Securities Law Violations

Attorney General Spitzer and the North American Securities Administrators Association (NASAA) today announced the creation of a multi-state task force that will focus on possible securities law violations at Wall Street investment firms. The task force will be co-chaired by New York, New Jersey and California.

NASAA is the national association representing securities administrators of all 50 states, the District of Columbia and Puerto Rico. NASAA president Joseph Borg stated that NASAA will be working with New York in the continuing investigation of other investment banking firms, which will center on practices that adversely affected thousands of Main Street investors nationwide.

Earlier this month, Attorney General Spitzer obtained a court order requiring injunctive relief against Merrill Lynch, arising out of New York's investigation into the firm's investment advice. This investigation showed that research analysts were making private disparaging remarks while publicly recommending their stocks. New York State is currently in negotiations with Merrill Lynch on this issue.