In accordance with the present invention, it has been discovered that glucose and 
incretin hormones promote 
pancreatic islet cell survival via the 
calcium and cAMP dependent induction, respectively, of the 
transcription factor CREB. Specifically, a signaling module has been identified which mediates cooperative effects of 
calcium and cAMP on 
islet cell gene expression by stimulating the 
dephosphorylation and nuclear entry of TORC2, a cytoplasmic 
CREB coactivator. The module comprises a cAMP regulated snf1-like 
kinase called SIK2 and the 
calcium regulated 
phosphatase calcineurin, both of which associate with TORC2 in the 
cytoplasm. TORC2 is repressed under basal conditions through a 
phosphorylation dependent interaction with 14-3-3 proteins. cAMP and calcium signals stimulate 
CREB target gene expression via complementary effects on TORC2 
dephosphorylation; cAMP disrupts TORC2-associated activity of SIK2 or related family members, whereas calcium induces TORC2 
dephosphorylation via calcineurin. These findings provide a novel mechanism by which CREB activates cellular 
gene expression, depending on 
nutrient and energy status, and facilitate development of assays to identify compounds which modulate the role of TORCs. In accordance with the present invention, it has been discovered that fasting and energy-sensing pathways regulate the gluconeogenic program in liver by modulating the nuclear entry of a transcriptional coactivator called 
Transducer of Regulated CREB Activity 2 (TORC2). Hepatic TORC2 over-expression induces fasting hyperglycemia, whereas knockdown of TORC2 leads to fasting 
hypoglycemia and silencing of the gluconeogenic program. Since a majority of individuals with 
Type II diabetes exhibit fasting hyperglycemia due to elevated hepatic 
gluconeogenesis, compounds that enhance TORC2 
phosphorylation will find use as therapeutic agents in this setting.