I am watching with interest the first “live” appointment of SEC Chair when I am on board. It is a powerful position to replace William Donaldson and so the political forces have battled. I find it a little bewildering to try and identify the right traits in these "confirmation hearings". Wonderful to see democaracy in action, and especially where investor rights will be affected. But similar to the other hearings and Supreme Court justices hearings, how does the interviewing help. I guess like anbything we judge on past performance. Ironic in an industry where by law any description of investment performance must come with its "past performance is not predictive of future performance" caveat!
The good news is the winner seems to be politically astute. After being sworn in on Wednesday, 3 Aug. Cox managed to send a signal early: he said his first meeting with SEC staff was with Linda Thomsen, director of the enforcement division. Reuters headlined with “New SEC chief backs investors, plain-English push” Reuters News 4 August 2005 10:50 WASHINGTON. "She and her entire division will have my unstinting support," Cox told hundreds of SEC employees in a packed auditorium at agency headquarters appealed to SEC staffers to put investors' interests first, saying, "If investors ain't happy, ain't nobody happy." U.S. Securities and Exchange Commission Chairman Chris Cox, in his first speech as head of the agency on Thursday, said he would put investors first, renew a push to put SEC rules and disclosures in plain English and be tough on enforcement.
Lobbyists for industries affected by these issues will weigh in on them, but Cox warned: "No one is entitled to line jump and press their issues to the forefront."
Addressing speculation since his nomination weeks ago about whether as chairman he would be "pro-business or pro-investor," Cox said the U.S. Department of Commerce serves the business community and the SEC serves investors. It isn't necessary for the interests of investors and business to be in conflict."
On Monday, July 25, a number of SRI, public interest and labor pension groups had participated in joint media to bring attention to the confirmation hearings for 3 SEC Commissioners, including Rep. Chris Cox who has been nominated for the chairmanship. A prelim list of reporters that were on the call is below. The event featured Damon Silvers of the AFL-CIO, Joan Claybrook, head of Public Citizen, and Shelley Alpern of Trillium Asset Mgmt. The speakers focused on Cox's record, the urgent work still to be done by the SEC, and why these appointments are so crucial to maintaining the health of the US markets.
According to Tracey Rembert, Coordinator of Investor and Corporate Engagement Service Employees International Union Capital Stewardship Program, both Damon and Shelley were clear to say that most union funds and the SRI community in general have not opposed the candidate, but wait to hear what he has to say at the hearing, but that we were all troubled by media reports and a glance at his voting record over the years that seemed to run counter to investors' best interests. “Senate Banking Committee and staffers were interested in the diverse group of investors signing on”, she said.
The SRI effort ended up getting 42 signatories, as Domini and Ceres joined the action today. Public Citizen also released its report looking at Cox's voting record going back to 1989 www.citizen.org/documents/PC_Cox_Rpt.pdf
On the Media call:
American Banker Amy Thompson, Bloomberg Larry Arnold, Washington Post Carrie Johnson, BusinessWeek Amy Borrus, Los Angeles Times John Peterson, U.S. News and World Report Danielle Knight, Business Ethics Magazine Marjorie Kelly, New York Times Steve Labaton, BNA Rachael McTake, Congress Daily Molly Peterson, Common Cause Suzanne Goodman, Laborer Journal Linda Pricilla, Talk Radio News Kate, The Bond Buyer Lynn Hume, Dow Jones Judy Burns, Wall Street Journal Deborah Soloman, The Hill Alana Shore, Marketwatch Rob Schroeder.
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