Former SEC Chair Cox Undermined Enforcement Efforts

Washington Post:

The five enforcement officials caught a morning Acela train bound for Washington. Based at the New York office of the Securities and Exchange Commission, the team was seeking agency approval to impose tens of millions of dollars in fines on a drug company, Biovail, which had allegedly used the crash of a truck hauling depression medicine to cover up financial losses.

Read the whole story: Washington Post

Comments

[iridium53]

09:37 AM on 06/02/2009

This is why Obama's idea of a single enforcement agency is such an incredibly bad idea.

The idea of a single administration enforcement hierarchy gives far too much power to particular individuals.

It will make it much easier for regulations to be modified because it cuts down on the number of people that the financial institutions will have to promise jobs to later and bribe now.

Clearly, the range of ability for specific individuals to choose whether to enforce rules is a problem in all of these agencies.

Who will watch the watchers?

[Ricardo01]

02:42 PM on 06/01/2009

Cox was incompetent as an Orange County Republican, a congressman, and his complete Peter Principle appointment to the SEC. To sum it up, Cox Sucks.

[GreatNews27]

01:59 PM on 06/01/2009

Every Republican head of every agancy has always undermined their agency's endorcement. How can you expect your criminal friends in the corporate world to lie, cheat, and steal if you enforce the law? DUH!!!!!!!!!

[sloreader]

03:32 PM on 06/01/2009

Why we choose to elect Republicans who are bound and determined to prove that government does not work is beyond my comprehension.

[joebaggadonuts]

07:12 PM on 06/01/2009

It's called cognitive consistency. Their identity is bound up on proving they are right, so they do things to prove it even when reality proves them wrong.

[TexasDem0]

03:50 PM on 06/01/2009

The BushCo Crime Syndicate adopted that directly from Saint Ron's anti-government gospel.

[KCFreedom]

07:23 PM on 06/01/2009

The form of "libertarianism" practiced by the GOP and the Bu$h administration has nothing to do with the form advocated by Ron Paul. Ron follows the Mises Institute model, the GOP follows a hijacked hybrid model originating from the Chicago School and the Cato Institute. Theirs is a form of "soft fascist capitalism" (my own words, I've heard it differently).

While I don't agree with everything Ron Paul says, what you said is just incorrect.

[Christian]

01:52 PM on 06/01/2009

Cox aided and abetted crimes, theft, and should be brought up on charges. Course that is wishful thinking I am sure.

[TJCole]

01:12 PM on 06/01/2009

That was his job to destroy all oversight and enforcement, that's why Bush appointed him....

Same goes for almost every other government agency...that Bush destroyed...

[jsgaetano]

12:50 PM on 06/01/2009

The Republican's weakness on crime is second only to their weakness on terrorism.

[jeffp26]

11:11 AM on 06/01/2009

With all due respect, and not to make Cox any more reputable, the SEC was a joke long before Cox got the job.

And I will promise you that it will be worse under Mary Schapiro, who ran the corrupt NASD/FINRA for the past 12 years.

What people need to understand is that the SEC exists not to protect investors, but to protect wall street.

[Christian]

01:54 PM on 06/01/2009

I don't buy that for one second! No one has ever supported business over people like Bush did.

[joebaggadonuts]

07:13 PM on 06/01/2009

Government must be watched every minute.

[coco51]

09:49 AM on 06/01/2009

Another Rethug crony gets away with malpractice

[urnumbersix]

09:49 AM on 06/01/2009

Is there a way to levy a criminal penalty against Mr. Cox?

At least there should be a trial!

[WindySailor]

09:25 AM on 06/01/2009

Cox was undoubtedly on the take.

[AddyGmom]

09:33 AM on 06/01/2009

Hope Bernie Made-off with his money . Who was the accountant guy who had the goods on Madoff and the SEC refused to do anything about it back in the 90's?

[Rich Hosking]

11:22 AM on 06/01/2009

Yep. Him and a few dozen buddies.

Makes ya wanna barf.

Can't wait for the change we can believe in. Just f'n giddy.

[Rog49Thomas]

08:27 AM on 06/01/2009

Yes, this may be true.

But as we all know (or should) the Magic Free Market Fairy makes sure that the market self-regulates itself so that there are no excesses.

And having accomplished that task, then the MFMF trickles down on the little people.

Savvy folks - like me - know it's better to jump out of the way immediately after you feel the first few drops.
Even with ample doses of Lysol and bleach it's really hard to get the smell out.

[schatsie]

08:22 AM on 06/01/2009

This sentence alone tells the story..

The bank was accused of ignoring improper transactions at one of its clients that had cost investors -------$2.6 billion-------. J.P. Morgan agreed to pay a -----$2 million penalty---- to settle the case, less than .1%...How is that a penalty and how will that prevent them doing the same thing again,,,Say you make 2.6 million and the penalty is 2 thousand, would you stop the practice..

Frankly, i have believed that the entire Bush Regency was a shake down system,,,we will leave you alone if you give to the Heritage Foundation, the Bush library or Carl Rove's little sister......

[KCFreedom]

10:09 AM on 06/01/2009

But a common citizen just accused of "selling drugs" can have all of their assets seized.

Go figure.

[Mogamboguru]

07:55 AM on 06/01/2009

Under every stone you turn, there's a white-collar-crime these days.

It's high time to let no stone unturned and .r.o.u.t that. .c.r.i.m.i.n.a.l..bunch out once and for all.

[Cambridge9]

07:35 AM on 06/01/2009

At least McCain said one thing that was appropos during his campaign when this meltdown began. He said he would fire the chairman of the SEC. Of course, he wasn't in the position to do such a thing at the time. We can only hope that Mary Shapiro will move in a 180 degree direction . It appears that the change has already begun, but it will take a lot of time to right this ship.

[shakker]

10:33 AM on 06/01/2009

The ship has sunk. Some survivors are in the water. We need life rafts, helicopters, lifeguards, and a manufacturing base to build a new fleet of ships. We should spend less than half of what we are spending on the military and give up the empire before we lose it and go further into bankruptcy.

Universal health care and free merit based education for all would make our people healthy and much more competitive. Paying for it should be through a federal sales tax on all goods and services. Corporations should get a tax credit for all social security and other federal social taxes ACTUALLY PAID.

All corporations with more assets than the poorest State should be broken up.

All American war criminals should be prosecuted.

We must stop hiring mercenaries and impose a draft for all military needs. I suspect that will reduce our needs for military substantially and help the military keep it's moral compass.

[Cambridge9]

11:31 AM on 06/01/2009

I happen to agree with most of your post, but disagree that the ship has sunk. This country and it's people are better than that - and with a good captain it can be salvaged. I'm 75 and may not live to see it - but it will come back.

[Prakosh]

07:04 AM on 06/01/2009

The Bush administration didn't want to enforce SEC regulations or to do investigations. Look how htey handled the meltdown of Enron. It's surprising that in most of the economic stories or comments here about Bush and the economy that so few talk about or even mention Enron which occurred on Bush's watch and given the immense costs of that meltdown it is really surprising that the Bushies learned absolutely from it. Their attitude was alls fair in love and business and after watching how Enron basically R A P E D the consumers of California and walked away scott free, one cannot blame other businesses for thinking that the Bush administration was taking a hands off approach to business fraud and obfuscation.