Revision Of American Stock Exchange Urged

Press, Volume C, Issue 29707, 28 December 1961, Page 12

Revision Of American Stock Exchange Urged

(N.Z.P.A.-Reuter—Copyright)

NEW YORK, Dec. 26. The American Stock Exchange’s own investigating committee has recommended a sweeping revision of its organisation and administration, according to the Associated Press. The nine-member committee, in an interim report to the exchange’s board of governors. said that such action should be undertaken without delay. The committee of exchange members was appointed on October 12 to review rules, policies, and procedures, and recommend any revisions, additions, or eliminations which it believed would improve operations and enhance the service to the public. The committee was appointed after the start of an investigtaion of the exchange by the Securities and Exchange Commission. The commission ordered the inquiry after • scandal broke last May involving a father-and-aon team of specialists, Jerry and Gerard Re. The commission suspended the Res fee alleged manipulation of stock prices. They later were arrested. The exchange’s president (Mr Edward McCormick) resigned on December 12 together with the general counsel (Mr Michael

Mooney). They said they felt that because of “recent publicity” they should sever their connexions. The investigating committee recommended to the board of governors that it immediately appoint a committee to seek a new president. It also recommended elimination of the committee system, and establishment of a strong staff organisation with additional staff and added authority. i