Cox v. Shapiro SEC Chairs

1 06 2009

Today’s post will be very short, as I have a loaded day today.  The Washington Post today printed an article about enforcement problems that occured during Christopher Cox’s tenure of the Securities Exchange Commission, and how the new Chair, Mary Shapiro, must deal with them.  I do not dispute problems that occurred during the Cox years, and I do agree that Shapiro inherited a mess.  There are some things I’d like to ask.   How much of a role did the securities market play in the economic situation we are now facing?  Would more regulation solve the problems, or exhaserbate them?

From the Washington Post:

During Cox’s tenure, investigators who wanted to subpoena documents or compel interviews faced an increasingly cumbersome process to win the commission’s approval for each case, according to current and former agency officials….

This is the legacy Mary Schapiro inherited when she replaced Cox as chairman this year. Among her first acts, Schapiro freed enforcement officials from getting commission approval before negotiating settlements with companies and established an accelerated process for authorizing subpoenas and depositions. She speaks frequently of taking the “handcuffs” off of the enforcement division.

I invite you to leave comments.  This blog is not my soapbox for me leaving my ideas.  Let me, and everyone else who reads this, know what you think.




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