"Investors were expecting a home run proposal to reform the New York Stock Exchange. What we got, I believe, is not even a base hit. This proposal will not significantly restore investor confidence. While the proposed new board would be independent, it does not have a strong representation by investors who are the ultimate customers. Of equal disappointment here is that the proposal lacks the proper regulatory framework.
"Too much has happened to allow the NYSE to self-regulate, particularly since the main board will not have a powerful enough representation by institutional investors. I am inclined to agree with those at the Securities and Exchange Commission who believe it is time to set up a separate regulatory body, given the continuing disclosures of skimming and self dealing by specialists.
"Today's proposal is especially confounding, because it is weaker, in my view, than the McCall/Panetta proposal floated weeks ago which we believed Reed supported. That proposal ensured strong investor voices on the board. The latest proposal retreats from that.
"The bottom line is that investors' confidence will not be restored by a plan that merely reorganizes -- rather than truly reforms -- this organization."
