CAMBRIDGE, July 11, 2008 – The Committee on Capital Markets Regulation (CCMR), an independent and nonpartisan research organization formed to improve the regulation of the U.S. capital markets, announced today a new study— “Fundamental Issues in the Securitized Debt Markets” —designed to produce recommendations to restore securitized debt markets devastated by the ongoing credit crisis.

Hal Scott, the Committee’s Director and Nomura Professor at Harvard Law School, said: “The worsening state of the debt markets and the continued deterioration of the competitiveness of the U.S. equity markets, are a major concern.  Without stronger capital markets, full economic recovery in the U.S. will not be possible.”

The Committee’s recommendations will focus on five principal areas: transparency, consumer protection and borrower relief, capital requirements, regulatory reorganization and monetary policy (including issues raised by the Bear Stearns rescue).  The Committee will release its report in December prior to the new Administration taking office.

“Revitalization of the securitized debt markets, on a more prudent footing, is important to the ability of millions of Americans seeking credit to buy homes or automobiles,” said Professor Scott. “Further, it is crucial for spreading risk in the financial system.  The banking system would have been more devastated, and the credit crisis more intense, if banks had been unable to securitize mortgages or other forms of consumer debt. Revitalization may indeed require more regulation—if so, we want to make sure it works, is consistent with other international initiatives and is cost-justified.”

The CCMR has created an Advisory Committee to oversee the research and recommendations, which will be chaired by Glenn Hubbard, Dean of Columbia Business School.  The Committee will be composed of several CCMR members as well as outside experts.  CCMR members include: Robert Glauber, Visiting Professor, Harvard University Kennedy School of Government and former Chairman and CEO, NASD; Blythe Masters, Head of Global Commodities, JP Morgan Investment Bank; Wilbur Ross, Chairman and CEO, WL Ross & Co. LLC; and Hal Scott.  Outside experts include: Peter Fisher, Co-Head of Fixed Income, BlackRock, Inc. and former Under Secretary of the U.S. Treasury for Domestic Finance; Boyce Greer, President of Fixed Income and Asset Allocation, Fidelity Investments; Robert Kaplan, Professor of Management Practice, Harvard Business School; John Rutherfurd, Retired Chairman and CEO, Moody’s Corporation; and Jeffrey Solomon, Managing Member, Ramius LLC.  The Advisory Committee will also be assisted by a panel of experts in law, finance and accounting.

The Committee on Capital Markets Regulation is an independent and nonpartisan 501(c)(3) research organization dedicated to improving the regulation of U.S. capital markets.  In November 2006, the Committee issued its Interim Report, which found a marked deterioration in the competitiveness of the U.S. public equity market and proposed 32 regulatory and other reforms to address the problem.   The Committee has also issued quarterly updates of these findings (available at www.capmktsreg.org), showing a continued deterioration in U.S. competitiveness.

#  #  #

For Further Information:

Hal Scott
(617) 384-5364
hscott@law.harvard.edu

Tim Metz
Hullin Metz & Co. LLC
(646) 495-5136
tim@hmcllc.com