Former SEC Chief Finds Consulting Firm Through Revolving Door →
Mary Schapiro, the former head of the Securities and Exchange Commission (SEC), is joining Promontory Financial Group LLC, a major private consulting firm stocked with former regulators, but she thinks she isn’t part of the revolving door.
“At the firm, he represented the likes of Kenneth D. Lewis, former chief executive of Bank of America who faced regulatory investigations over the bank’s hasty takeover of Merrill Lynchduring the depths of the financial crisis.
Mr. Ceresney, who defended JPMorgan from federal inquiries into wrongful foreclosure practices, also worked side by side with clients under scrutiny for selling troubled mortgage securities at the height of the housing boom.
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From a New York Times article about the resume of the leading candidate to be the chief of enforcement at the Securities and Exchange Commission.
Ceresney will be in charge of prosecuting banks and executives that he may have previously defended.
(Source: The New York Times)
Great cartoon from Matt Wuerker at POLITICO about POGO’s recent report on the revolving door at the SEC.
Yet again, no one is going to jail for their role in the financial crisis →
The collapse of one mutual fund was central to the 2008 financial crisis, but the father-son team that led the mutual fund escaped punishment Monday when the Securities and Exchange Commission lost their case against them. Read the full story at The New York Times.
“Those who support preserving the status quo where Wall Street regulates itself will find much to like in this legislation,”
“His opposition to a proposal put forward by the S.E.C. chairwoman, Mary L. Schapiro, which was intended to improve the safety and soundness of a popular investment, money market mutual funds, put Mr. Aguilar in lock step with the powerful and aggressive mutual fund industry in which he worked as a lawyer from 1994 to 2002.”
No Criminal Case Is Likely in Loss at MF Global →
“Many of the costs and benefits of financial regulation simply cannot be quantified. How do you quantify the human costs that all the economic wreckage has inflicted? Searching and not being able to find work for years…lost retirements, educations and dreams. How do you quantify that? You don’t.”
Do you think a part of Wall Street should be able to regulate itself? In case you have any doubts about how bad of an idea this is, POGO’s Michael Smallberg will explain what is wrong with self regulatory organizations.
Get involved and tell Congress not to let Wall Street police itself.
