Wall Street executives appear on list if fund-raiser for N.Y. comptroller.

Despite agreeing to ban campaign contributions to state and local officials, four Wall Street executives were listed this week as members of a committee designed to raise funds for New York State Comptroller H. Carl McCall.

The officials, David C. Clapp, a general partner at Goldman, Sachs & Co.; Felix G. Rohatyn, a partner at Lazard Freres & Co.; Richard Jenrette, chief executive officer of the Equitable Companies, which owns Donaldson Lufkin & Jenrette Securities Corp; and James E. Cayne, chief executive officer at Bear, Stearns & Co., are listed on an Oct. 25 letter soliciting contributions to a McCall fund-raiser scheduled for Dec. 7.

All four executives work at firms that joined an historic accord reached by 17 of the largest municipal bond underwriters on Oct. 18 to ban political contributions to state and local officials. Clapp and Rohatyn attended the meeting where the agreement was announced.

In an interview, Clapp, who is also chairman of the Municipal Securities Rulemaking Board, said he made the commitment prior to the voluntary ban announced by a number of major municipal firms last week. He said he will not solicit contributions on McCall's behalf or make contributions to McCall's campaign.

A Lazard Freres executive speaking on Rohatyn's behalf said Rohatyn will not make contributions or solicit funds for McCall, but will remain with McCall's finance committee.

Cayne of Bear Stearns declined to comment on the matter.

A spokeswoman for Donaldson Lufkin & Jenrette said Jenrette's involvement does not violate the ban, which was announced at the headquarters of the Securities and Exchange Commission in Washington, D.C.

Under the terms of the accord, "each firm, employee, political action committees, and each firm's municipal finance professionals, their supervisors and senior management will be prohibited from making political contributions at state and local levels."

The agreement also says that companies affiliated with the 17 firms can make contributions, but such companies cannot make contributions to obtain municipal business.

The Donaldson Lufkin spokeswoman said Jenrette's involvement does not violate the agreement because he is chairman of DLJ's holding company, not an executive of its municipal bond division, and that his activities are not meant to obtain municipal bond business.

The letter was mailed by McCall's office to many municipal market and Wall Street executives.

The ban, announced by SEC chairman Arthur Levitt Jr., followed a proposal by the rulemaking board that bans business-related contributions to state and local officials, and a recommendation by the Public Securities Association calling for an end to political gifts.

Levitt said yesterday he had no comment on the matter.

The efforts to restrict campaign involvement have emerged as municipal market transactions and other market functions have come under increasing scrutiny from regulators and government prosecutors amid conflict-of-interest charges involving public officials and bond firms in New York City, New Jersey, Louisiana, and elsewhere around the nation.

As the ban fever grows, some government officials, like California Treasurer Kathleen Brown, have said they will no longer accept campaign contributions from firms vying to underwrite their bonds.

As state comptroller, McCall plays an important role in New York's capital financing needs, including the selection of some underwriting syndicates for municipal bond deals.

"The fund-raiser on December 7, 1993, will kick-off Carl's campaign," the letter says. "As a member of the Benefit Committee, you can help us demonstrate early the depth of Carl's financial support. Those taking $25,000 Benefactor Tables will be listed as Co-Chairs on the invitation. Patron tables at $15,000 and sponsor tables at $10,000 include Vice-Chair listing.'

Darrell Paster, treasurer of McCall for Comptroller '94, said in a statement, "The fund-raising committee was formed in the summer, before there were any voluntary guidelines or rules. The comptroller knows that all committee members will live by any guidelines or rules that exist."

Clapp, who has spearheaded efforts to ban political contributions, said he was informed of McCall's fund-raising announcement by Heather Ruth, president of the PSA, who received the notice anonymously.

Clapp said he agreed to join the McCall finance committee "months ago," well before the MSRB's proposal was announced in September and before the Oct. 18 voluntary accord. Since joining the committee, Clapp said he has discussed the MSRB's ban with McCall, as well as other industry efforts to ban political contributions.

Clapp said "it never occurred to me" that he was on the financing committee list, and that he "hasn't heard from [the McCall campaign] since."

"I can't raise money," Clapp said. "I am a covered person with any of these rules."

Like Clapp's decision to serve on the McCall finance committee, "Mr. Rohatyn agreed to do this a long time ago," the Lazard spokesman said.

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