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Will “Fix” Remain In at SEC After Schapiro?

Posted by Larry Doyle on September 19, 2012 4:31 AM |

Reports circulating that Mary Schapiro will step down from her post at the SEC pending an Obama re-election are increasing. Unless Ms. Schapiro is relinquishing her throne in preemptive fashion I do not know why this story is even getting legs. It is certainly not uncommon for significant turnover within a President’s cabinet after the completion of a first term.

I sincerely hope that she is not in ill health but that concern is raised in a story in the New York Post, SEC You Later, Pal: Schapiro May Be Heading for The Exit,

Chatter surrounding Schapiro’s status at the regulatory agency has reached a crescendo in the past few days as an undisclosed medical procedure has resulted in her taking a leave of absence — set to end tomorrow.

An SEC official told The Post that Schapiro has been on medical leave since last Thursday and has been working from home as she recovers.

I wish her a speedy and full recovery from whatever ailment she may be experiencing.

I have been so stridently critical of Ms. Schapiro specifically and Wall Street regulation at large because of all the material and cases I have read over the last three plus years (collectively defined as the Wall Street -Washington Incest). In short, I believe in large measure the FIX HAS BEEN IN on so many angles of the Wall Street regulatory front.

Assuming that all the noise surrounding Ms. Schapiro’s departure is true, will “the fix” remain in place under the next leader of the SEC? I guess that depends on numerous factors not the least being who the next SEC head might be. All this said, this discussion is entirely premature pending the outcome of the Presidential election. In light of that, I have to admit I doubled over when I read in the aforementioned New York Post article the name of an individual being bandied about as the next head of the SEC. Are you sitting down? The New York Post reports,

One possible early front-runner to replace Schapiro may be FINRA CEO Richard Ketchum, sources speculate.

Are you kidding me? I guess the early smoke signals emanating from Washington to Wall Street and beyond are “do not worry.” THE FIX REMAINS IN. Ketchum is a career regulator and a veteran of the Wall Street-Washington Incest from way back. What was the immediate thought that ran through my mind when I read that line?

Somebody or some group must believe it is prudent to float this story about Ms. Schapiro’s departure while also promoting Mr. Ketchum’s ascent to the SEC throne. Let’s play a little offense here. Perhaps, just perhaps, if Mr. Ketchum were to sit for confirmation as the new head of the SEC, one member of Congress may care enough to question him about what I believe is just one of the epic FINRA frauds. Which one?

Standard Chartered v. FINRA

This being the case in which plaintiff alleged FINRA executives, including Mary Schapiro herself, LIED verbally and in writing in the proxy statement used for the merger to create FINRA. The case was appealed all the way to the SCOTUS but was never heard. Do readers think America deserves to know if Ms. Schapiro et al actually L-I-E-D in the course of the transaction and proxy statement used for the very formation of the SRO overseeing Wall Street? Do I even need to ask?

Of course America both deserves and needs to know that information if we are ever to regain trust in our markets and atop Capitol Hill.

Richard Ketchum . . . ?

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.


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