At the request of the chairman of the Senate Finance Committee, the Government Accountability Office will review two divisions of the Securities and Exchange Commission-the enforcement unit and the office of compliance, inspections and examinations.

Specifically, the Senate wants to find out how those divisions handle referrals, particularly from the NASD and the New York Stock Exchange, how they handle investigations and how many referrals translate into enforcement actions. Senate Finance Committee Chairman Charles S. Grassley (R-Iowa) is particularly interested in how the SEC handles insider-trading investigations.

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