Former MSRB Chairs, David Clapp and Ronald Stack, to Participate in SEC Historical Society Program on Pay to Play

Date: April 1, 2011

Contact: Jennifer A. Galloway, Chief Communications Officer
              (703) 797-6600


Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) announced today that two former MSRB Chairs will participate in a live, audio program about the MSRB’s pay to play rule and its role in curbing conflicts of interest in the municipal market. The program will be broadcast on by the Securities and Exchange Commission (SEC) Historical Society on April 28 and preserved in its virtual museum and archive on the site.

David C. Clapp (MSRB Chair, 1994) and Ronald A. Stack (MSRB Chair, 2009) will discuss MSRB Rule G-37, which was adopted by the MSRB in 1994 to ensure bond business is awarded on the basis of merit by seeking to sever any connection between political contributions to issuers and the awarding of underwriting contracts to municipal securities dealers. The rule was the first-ever to address pay to play in the financial industry and the MSRB has continued to refine the rule.

“The MSRB was the first regulator to prohibit pay to play activities in the financial services industry and our rules have served as a model for similar federal and state prohibitions,” said MSRB Executive Director Lynnette Kelly Hotchkiss. “David and Ron have been permanent proponents of the rule and their discussion promises to be fascinating for anyone interested in pay to play.”

The virtual "Fireside Chat" will take place on April 28, 2011 from 2:00 p.m. to 3:00 p.m. EST and will be broadcast on The event is free and no registration is required. Professor Lisa Fairfax of George Washington University Law School will serve as the moderator. Visitors to the site are welcome to submit questions for the program prior to the broadcast.

Mr. Clapp is a former partner at Goldman Sachs in charge of Municipal Bond Department and was Chair of the MSRB when Rule G-37 was adopted. Mr. Stack is a Managing Director at Wells Fargo and was Chair of the MSRB when it began requiring municipal securities dealers to publicly disclose contributions made in support of bond ballot initiatives. Mr. Stack has been a public finance investment banker for over 20 years. is the virtual museum and archive that opens the door to the history of financial regulation from the 20th century to the present. The site, free and accessible at all times, is built and administered by the SEC Historical Society, a non-profit organization. The virtual museum, archive and the Society are independent of the SEC and receive no government funding.

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.