“We have prostituted our standards of securities underwriting and sales of securities to investors. When the Street starts justifying stuffing customers and saying, ‘It’s O.K., caveat emptor,’ that requires a public policy response. We need to say to the Street, ‘In all the things you do, especially if it is sold to a pension fund, you have a duty of care to every party in the transaction.’”

Christopher Whalen, Editor of Institutional Risk Analyst New York Times article "Resetting the Moral Compass" January 23, 2010

Alliance For Economic Stability

Home U.S. SEC Initiative

Alliance for Economic Stability Announces Reports on Ethics Violations by SEC Chairman.

The Alliance for Economic Stability (AES) today announced the release of an investigative report and supportive documentation concerning ethics violations by SEC Chairman Mary Schapiro and related conflicts of interest.

The ethics violations in question surround President Obama’s executive order on ethics – the greatly publicized effort to reduce conflicts of interest for the President’s appointees – and a letter agreement Schapiro made with the U.S. Office of Government Ethics.

Prior to her appointment to the SEC, Schapiro worked for FINRA, a private organization that paid her a multi-million-dollar salary.  The AES also released a report on Schapiro’s compensation for regulatory work.

As Chairman of the SEC, Schapiro now heads the only government body that has authority to oversee FINRA.  Schapiro has appointed the SEC directors who have direct responsibility for overseeing FINRA, her former employer.  Schapiro has also decided not to take action to address evident deficiencies at FINRA.  These decisions appear to be a violation of the President’s executive order that prohibit appointees from making decisions substantially affecting their previous employers.

The AES has prepared two other reports on the issue of ethical violations and a separate report on conflicts of interest presented by FINRA’s executive compensation.

These reports, together with an in-depth study on FINRA’s conflicts of interest, are available at the AES website at www.eally.org.

About the Alliance for Economic Stability:

Alliance for Economic Stability is a non-partisan non-profit organization.  The purpose of the AES is to encourage government policies that protect savings and investments, and promote a fair financial marketplace. 
Daniel Rodriguez
Tel. (914) 954-0541
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it


Become an eAlly to post Comments and Discuss. Thanks.

Contribute Today

Your support allows AES to continue to conduct independent research and investigations of the Regulatory Systems that allowed for the economic crisis. Thank you for your contribution.

Amount:   USD

Who's Online

We have 45 guests online

Share with others