Corporate Governance

Mary Schapiro and Congressional Hearings

By J. Robert Brown

Senate hearings for the confirmation of Mary Schapiro as chair of the Securities and Exchange Commission will be held on January 15.  With the President Elect having passed over persons viewed as more likely advocates for shareholders and investors, suspicion and concern has begun to surface over her appointment.  As the NYT described:

• Mary Schapiro, Mr. Obama’s choice to lead the Securities and Exchange Commission, has served ably in government and industry regulatory positions, but is best known for her support of self-regulation and a greater role for principles-based regulation — basically, the opposite of clear rules. The choice of Gary Gensler to lead the Commodity Futures Trading Commission, which regulates futures contracts, is more troubling.

She is, as a result, likely to get some tough questioning.  Few doubt Schapiro's knowledge, intellect or experience.  But whether she will be the forceful advocate for investors and shareholders that the prior Commission was not is the unanswered question.  This is one of the things that will be explored during the confirmation hearings.

Full post as published by The Race to the Bottom on January 08, 2009 (boomark / email).