If today's statement by the Securities and Exchange Commission regarding a subpoena issued to two reporters doesn't constitute a firing offense for Chairman Christopher Cox, I don't know what does.
Of course, in the topsy-turvy, "fail-up" world of Bush Administration politics, it's more likely that Cox just joined Donald Rumsfeld, Michael Chertoff and Brownie on the short list to replace Dick Cheney should the vice president try to blow anyone else's face off.
To review, on Saturday The New York Times ran a front-page story disclosing that the SEC had issued a subpoena seeking the reporting notes of financial investigative journalists Herb Greenberg of MarketWatch.com and Carol S. Remond of Dow Jones Newswires. (Full disclosure: I worked with Remond at Dow Jones and voiced my opinion on the matter here.)
The highly unusual move was all the more troubling because the SEC appears to have been used as a menacing stalking horse for Patrick Byrne, the head of Overstock.com, who has accused both reporters of participating in a conspiracy to depress the value of his company's stock. Indeed, even before the subpoenas were made public, Byrne sent Greenberg a taunting email, asking, "I find myself curious: Do you guys know?"
Regardless of what you think of the merits of Byrne's claims (something I'll address in another posting) the idea that the SEC, a regulatory body designed to protect the public, would go to such extremes to aid a corporate interest is just appalling, though largely in line with the rest of the Bush administration's pro-business agenda. And Cox's attempt today to distance himself from the fiasco by saying he had nothing to do with it raises even more questions about his ability to oversee the nation's financial markets.
Here's the text of the statement the SEC released this morning:
"The issuance of a subpoena to a journalist which seeks to compel production of his or her notes and records of conversations with sources is highly unusual. Until the appearance of media reports this weekend, neither the Chairman of the SEC, the General Counsel, the Office of Public Affairs, nor any Commissioner was apprised of, or consulted in connection with, a decision to take such an extraordinary step. The sensitive issues that such a subpoena raises are of sufficient importance that they should, and will be, considered and decided by the Commission before this matter proceeds further."
So let me get this straight. At the SEC, you can have journalists subpoenaed without anyone in authority having a clue, and Cox needs the media to keep him abreast of what's happening in his own department? Holy crap! Someone really should tell the poor bastard if that's the case, it's even worse than saying he thought it was a good idea to subpoena reporters in the first place.
Clearly the SEC is yet another piece of the Bush administration run amok with incompetence. As a leader who takes no responsibility for his department's indefensible actions, Cox should be forced to fall on his own sword. But in a White House devoid any sense of accountability, the chances of that happening are extremely remote.
Here's a more likely scenario: Cox in '08!