If Mary Schapiro’s the answer. . .
...it was probably a stupid question
Sleazy Stocks mag cover girl gets SEC nod
President-elect Barack Obama will today announce that Mary Schapiro, chief executive of the Financial Industry Regulatory Authority (FINRA), will be nominated as chairman of the US Securities and Exchange Commission. FINRA, the securities industry’s largest self-regulatory organization, was formed last year in the merger of the former NASD Regulation (which she had joined as president in 1996) and the regulatory arm of the New York Stock Exchange.
Schapiro took the NASD-R’s money after putting in 15 months as chairman of the Commodity Futures Trading Commission; before that she was, from 1988-1993, a member of the US Securities and Exchange Commission, including a short stint as acting chairman early in the Clinton administration.
Schapiro has troubled these pixels but once, when we reported that in 2003, during a period when she was opining vociferously on hedge fund-related broker-dealer disclosures and the adequacy thereof, her valiant sleuths swept through the offices of Bayou Securities LLC in Scamford, Conn.
There, they found $8500 worth of allowing “two individuals to execute transactions...without first obtaining registration as equity traders…” and failing “to update written supervisory procedures reasonably designed to achieve compliance with said regulations…” The missing however many hundreds of millions it was by then quite escaped their attention as, boxes all checked and wrist-taps to come, the sleuths boarded the train back to Boston.
Nobody else has spent so long at such high levels of the long captured US securities regulation complex. She has been a big part of building the regulatory problem for two decades; Stockholm Syndrome means she is unfit to be part of the solution.
by Gary Weiss
Sep. 7 2007
(Much) Earlier on NakedShorts
Sep. 18 2005
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