Tuesday, March 8, 2011

Schapiro Must Go For Hiring/Keeping SEC General Counsel Becker

From The New York Times article, "S.E.C. Chairwoman Under Fire Over Ethics Issues" by Louise Story and Gretchen Morgenson:
Now, its [SEC} chairwoman [Mary Schapiro] is coming under Congressional fire for hiring as the S.E.C.’s general counsel someone with a Madoff financial interest — David M. Becker, who participated in matters involving how the scheme’s victims would be compensated.
Last Friday, H. David Kotz, the agency’s inspector general, announced that he would investigate the potential conflicts in Mr. Becker’s role as a Madoff recipient who was also the S.E.C.’s general counsel and senior policy director involved in decisions relating to the Ponzi scheme. Ms. Schapiro requested the review, a commission spokesman said.

Lawmakers have also asked Ms. Schapiro for details of her discussions with Mr. Becker about his Madoff account when she hired him in 2009. Ms. Schapiro missed a deadline on Monday for those responses. An S.E.C. spokesman said Ms. Schapiro declined to comment on Tuesday.
Can Mary Schapiro survive this taint?

A major role of the SEC is to preserve, protect and foster the retail investor's sense of trust and fairness in the financial markets. Schapiro hired and retained Becker as General Counsel with knowledge of his investment connection and financial interest in Madoff.

Schapiro has to go or the average investor will think the financial markets are rigged against them and that government oversight is to protect the rich and connected and not the common investor.

No comments:

Post a Comment