U.S. Securities and Exchange Commission Chair Mary Jo White "both embodies and promotes the revolving door between government regulator and regulated industry that empowers Wall Street insiders at the expense of investors and society writ large," according to a new report by Rootstrikers, a nonprofit that pushes for campaign finance reform. As Bloomberg notes, [8]the report, released Tuesday, criticizes White's work as a corporate defense lawyer, her recusals from some SEC enforcement cases and her propensity for hiring aides who previously worked in the industry.
White let her longstanding ties to Wall Street skew her ability to police the finance industry, adding to the litany of complaints by left-leaning groups about her tenure.
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The attack increases pressure on White from Democrats who are demanding the SEC impose heftier penalties on financial firms and complete rules that have languished. White’s critics include Massachusetts Democratic Senator Elizabeth Warren, who earlier this month called her leadership “extremely disappointing.”
Responding to Warren, White said in a June 2 statement that she is “very proud of the agency’s achievements under my leadership, including our record year in enforcement and the commission’s efforts in advancing more than 30 congressionally mandated rulemakings and other transformative policy initiatives to protect investors and strengthen our markets.”
The Rootstrikers report also is designed to send a warning signal to President Barack Obama as he considers candidates to replace outgoing Democratic Commissioner Luis Aguilar, its authors said. Liberal groups recently started an online petition to show their dismay with several potential nominees, who work at corporate law firms and are seen as moderates.
“We wanted to put this report out and really lay out a strong case on why the Obama administration should have chosen better last time around,” said Kurt Walters, campaign manager for Rootstrikers, referring to White’s selection. “We intend to encourage them to make the right choice this time.”
Rootstrikers was founded in 2011 by Harvard Law Professor Lawrence Lessig. It has been active in seeking reforms for the campaign finance system in the wake of Supreme Court decisions that have loosened contribution rules. It has more recently been working on issues related to financial regulation.
One of the major regulations that investor advocates want passed by the SEC would force companies to publicly report on their political spending. White has signaled the SEC won’t act on the measure.
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The report, viewable below, discusses a number of controversial issues that White has been forced to confront in recent months...
Rootstrikers - Mary Jo White the SEC and the Revolving Door Report [9]
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The authors of the report have also started a petition...
[10]
(click image for link to petition)