“First, we have endorsed the creation of a single financial markets stability supervisor…Second, the industry strongly supports the administration’s proposal for a public-private partnership to absorb troubled assets…Third, it is clear the complexity of some financial instruments went too …Markets themselves have also imposed some much-needed discipline, declaring the end of complex and confusing products such as collateralised debt obligations squared….Finally, we firmly believe that there have been excesses on the compensation front….compensation should not encourage excessive risk-taking, but should promote business sustainability and be aligned with the best interests of shareholders, the financial system and the economy.”

Timothy Ryan, President and Chief Executive Officer. The Securities Industry and Financial Markets Association (Sifma). June 8, 2009

Alliance For Economic Stability

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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


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