Federated Investors has begun discussions with the SEC and New York Attorney General Eliot Spitzer's office to resolve issues raised by past mutual fund trading activities, said J.T. Tuskan, Federated spokesman. Federated is cooperating with the investigation, according to a news release from the company. Federated "has been informed" that the staff of the SEC is in the process of determining whether to recommend civil enforcement action against two Federated officials who were sanctioned by the company as a result of its investigation into mutual fund trading activities reported by the company in February 2004. Federated has declined to identify the two employees, said Mr. Tuskan.