OTHER NEWS - Oct. 19, 1996

SEC Chief Opposes Prop. 211: Securities and Exchange Commission Chairman Arthur Levitt has come out against the ballot measure, which he says may make California a “magnet” for shareholder lawsuits. The proposition, which would make corporate directors personally culpable to pay damages in shareholder suits, “would actually encourage litigation by adding a new private right of action to California’s securities laws which is broader than that existing in any other state,” Levitt said in a letter dated Thursday to U.S. Rep. Anna Eshoo, a Democrat who represents Silicon Valley. The measure essentially would strip away some of the federal statutes that make it harder to sue companies for securities fraud. President Clinton opposes 211, as does Republican challenger Bob Dole. Proponents argue that 211 adds needed protection for investors.