SEC Chairman Mary Shaprio Pledges Pro-Investor Agenda at Confirmation Hearing
At her confirmation hearing yesterday before the Senate Banking Committee, newly appointed SEC chairman Mary Shapiro pledged to follow through on a pro-investor agenda that will include a push to change the way credit-rating agencies are paid and slow the U.S. transition to international accounting standards.
Mary Shapiro, who was recently appointed by President-Elect Barack Obama to replace outgoing SEC Chairman Christopher Cox, came under fire in a recent Wall Street Journal article. The WSJ report analyzed Shapiro’s record as a regulator and chided Shaprio for having a “light touch”. Cited as evidence of her “light touch” was the declining amount of fines levied by Finra and the NASD over the three years of her leadership.
According to a report by Investment News of Shapiro’s confirmation hearing before the Senate Banking Committe, Shapiro’s most adamant vow was that she will “reinvigorate SEC enforcement efforts in the wake of the Bernard Madoff investment scandal and the agency’s failure to anticipate the collapse of Wall Street giants such as Lehman Brothers Holdings Inc. and The Bear Stearns Cos. Inc., both of New York.”
“I’ve never been afraid to go after people who I’ve thought violated the public trust,” said Ms. Schapiro.
“One of the first things I’ll do is take the handcuffs off the enforcement division.”
Mary Shapiro is expected to be approved and assume her new role as SEC Chairman, as members of both parties reportedly have said they intend to vote for her. Outgoing SEC Chairman Christopher Cox came under fire from the panel for presiding over the SEC during a period define by “lax oversight”.
Discussion Questions for Comment Section:
- Will Mary Shapiro succeed in improving the enforcement efforts of the SEC?
- Does Shapiro’s record, and the assertion by the WSJ that Shapiro is a “regulator with a light touch” concern you as she prepares to assume her role as SEC Chairman?
Tags: barack obama, christopher cox, mary shapiro, regulation, sec
