Thursday, June 02, 2005

New SEC Chair Named

Just a day after William Donaldson announced his resignation George W. Bush has named Christopher Cox as chair. Donaldson was well known for his reforms for mutual funds and share holders protections, and constantly sided with Democrats to make these changes. The five person commission had important votes break down 3:2 with Donaldson being the tie breaking vote.

I don't see a reason why Cox won't be confirmed for this position after being confirmed for chairman of the House Homeland Security Committee. Cox is also a veteran of the Financial Services Committee and has a business and a law degree.

I need to look into this a little more, but so far Cox seems like the kind of chair that won't repeal all the amazing work that Donaldson did. That is all I can ask for in the post Enron era.

UPDATE 6/2/2005- 9:31
This is the latest off the AP Wire:

Cox supported the Sarbanes-Oxley Act of 2002, Congress' response to financial scandals at Enron Corp., WorldCom Inc. and other large companies. The law ordered the most far-reaching changes in corporate accountability since the Depression, imposing stiff new rules on companies and their top executives.

He also is a longtime advocate of repealing taxes on capital gains as well as on dividends.

The SEC position is subject to Senate confirmation, a process that left Cox bruised once before. He was in line for an appointment to the U.S. Court of Appeals in 2001 when Democrats suddenly gained control of the Senate.

Facing opposition from at least one of his home state's two Democratic senators, Cox realized he faced a difficult fight to win confirmation to the bench without a guarantee of success. He withdrew his name.


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