In This Issue:

*SEC/CORPORATE

..SEC Issues New Compliance and Disclosure Interpretations

*BROKER DEALER

..SEC Approves New Stock-by-Stock Circuit Breakers Rules

*CFTC

..CFTC Proposes Rules Requiring Equal Access to Co-Location Services

*LITIGATION

..Receipt of Stock Options Insufficient to Show Continuation of Alleged Conspiracy

..Second Circuit Holds That Interpreting Contract as Requiring Exclusivity Would Be Illogical

*BANKING

..Bargain Purchase Gains Subject to Regulatory Cutback

..FDIC Issues Guidance on Deposit Placement and Collection Activities

*INSURANCE CAPITAL MARKETS

..Ambac Commutes Policies Supporting CDOs of Asset-Backed Securities with Banks

..Rhode Island Court Rules on Stranger-Originated Annuities

*EXECUTIVE COMPENSATION AND ERISA

..IRS Finalizes Public Employer Stock Fund Diversification Requirements

*UK DEVELOPMENTS

..FSA Annual Report Published

..FSA Continues to Focus on Client Money

Please see full newsletter below for more information.