thedailybell.com / by Staff Report / Friday, November 30, 2012
The New York Times reported on Wednesday that Sallie Krawcheck, formerly of Citi and Bank of America, is the leading contender to be named chairman of the Securities and Exchange Commission. Let’s hope that President Obama comes to his senses and names someone more fit to the post. From the Times: With Ms. [Mary] Miller withdrawing, Sallie L. Krawcheck, a long-time Wall Street executive, has emerged as a potential front-runner. Over the last year, she has become a familiar face in Washington, making the rounds with lawmakers to discuss consumer issues. – Reuters
Dominant Social Theme: Only the honesty of regulators can salvage the market.
Free-Market Analysis: At Reuters, Kate Long has decided that Sallie Krawcheck is not suitable to head the Securities and Exchange Commission. Long points out that she has worked in regulation for many years and has a good idea of what is necessary for a top official to exhibit in terms of personal and professional capacities.
She writes, “There are some particular kinds of personality traits that are necessary to herd and motivate an agency of over 1,000 lawyers. Based on my reading of her record, Ms Krawcheck is not qualified to take on this role.”
She then describes what the SEC does. It is organized around two basic functions, she explains. The regulator composes the rules by which the financial markets live. The SEC also supervises various self-regulatory agencies including stock exchanges and broker dealers.
The SEC also interfaces with the Commodities Futures Trading Commission (CFTC), the Congress, the Federal Reserve, the Office of Comptroller of the Currency, foreign securities regulators and deals with the Financial Accounting Standards Board, according to Long.
Long believes these various tasks demand “the highest ethics.” She also believes Krawcheck’s ethics are lacking.