Schapiro Confirmed by Senate as SEC Chair
By David Feldman at 25 January, 2009, 7:11 am
Mary Schapiro, currently the head of Finra, was unanimously approved by the US Senate on Thursday to be the SEC’s first female Chair. As President Obama heads into office with a near disastrous economy, Ms. Schapiro heads to the SEC at a time when it is severely under attack. Many feel the Enforcement Division let Bernard Madoff fall through the cracks and that oversight of his operations was woefully lacking. And it does seem that our entire regulatory structure of the securities markets is outdated and, as Ms. Schapiro said, subject to a “stovepipe” mentality. She may well be remembered as overseeing either the dismantling of the SEC as part of a massive overhaul, or the strengthening of the Commission as its powers are increased and, possibly, a merger with the Commodities Futures Trading Commission (CFTC). Pres. Obama has made clear that looking at a series of fundamental changes in regulation is a high priority. I say: it’s about time. Good luck Chairwoman Schapiro.
WASHINGTON (Dow Jones)–The U.S. Senate voted unanimously Thursday to confirm Mary L. Schapiro as the new chair of the beleaguered Securities and Exchange Commission.
The Senate also unanimously cleared the nominations of four other cabinet level positions and a member of the Executive Office of the President who will guide White House environmental policy.
The vote for Schapiro comes just a week after Schapiro vowed in her confirmation hearing to “reinvigorate” the agency’s enforcement division, which has come under fire for failing to detect the Bernard Madoff’s alleged $50 billion Ponzi scheme for decades.
The agency has also faced strident criticism for its ability to oversee the markets after several of the Wall Street titans it regulates fell prey to the subprime mortgage crisis that is plaguing the global economy.
Schapiro, who currently heads the Financial Industry Regulatory Authority, or Finra, is a career regulator who has previously worked as a commissioner at the SEC and chairman of the U.S. Commodity Futures Trading Commission.
In addition to her plans to beef up the agency’s enforcement division, Schapiro said last week she also intends to bolster the agency’s role as an advocate for investors to help restore the public’s confidence in the SEC.
Despite some recent criticism of Schapiro in the press for failing to catch Madoff’s alleged fraudulent acts while serving as Finra’s chief, senators at Schapiro’s confirmation hearing last week had indicated they still intended to support her nomination to the top SEC post. (the Financial Industry Regulatory Agency), was
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