Bush Nominates Cox as SEC Chairman
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A new Securities and Exchange Chairman has been nominated by President George Bush. Christopher Cox is a Republican Congressman from California. Cox would replace William Donaldson who unexpectedly resigned from the post on Wednesday, effective from the end of the month. In recent months, Donaldson has been criticised for the tough approach he has taken on enforcement of existing rules and trying to bring in new ones. Mr Cox is widely seen as more deregulatory. His appointment would keep the balance on the five member commission on the Republican side. Chris will vigorously enforce the rules and laws that guarantee honesty and transparency in our markets and corporate boardrooms, President Bush said. "I've given Chris a clear mission - to continue to strengthen public trust in our markets so the American economy can continue to grow and create jobs." As the nomination was announced Cox was effusive about the SEC, "The rule of law that the S.E.C. enforces has given America the most dynamic and vibrant capital markets in the world, he said. "The unprecedented sharing of information about every productive part of our free-enterprise economy is only made possible by clear and consistently enforced rules, and those rules have to govern every market participant equally - big and small." Since 2002 and the Enron/WorldCom debacles corporate governance in the U.S. has become a lot more onerous. Not only has the Sarbanes-Oxley Act caused consternation, enforcement by the SEC has gone down the route of massive fines. Rep. Cox has been on the receiving end of some investor ire himself. In 1995 he was a defendant in a lawsuit by investors of an investment group. His role had been to provide legal advice to the Investment group. The investment group Latham & Watkins settled out of court. Cox however was dropped from the lawsuit. As a Congressman he was the author of the Private Securities Litigation Reform Act of 1995.
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