By: James W. Kraus
In a written release by the SEC this morning, Chairman Mary Schapiro announced her resignation, indicating she will depart the Commission on December 14, 2012.
Chairman Schapiro was appointed by President Obama at the beginning of his first term, taking over the reigns of the Commission at a low point in its history. Prior to Schapiro’s appointment, the SEC had sustained significant criticism for being impotent both in the run-up to and during the financial crisis of 2008. It’s most publicly embarrassing legacy was the failure to discover Bernard Madoff’s multi-billion dollar Ponzi scheme, despite receiving specific tips regarding the scheme for several years prior to Madoff turning himself in at the end of 2008.
Chairman Schapiro led the Commission through a period of significant change, including a marked increase in enforcement actions, investment in the upgrading of the SEC’s market intelligence capabilities, and implementation of rules for the SEC Whistleblower Program as mandated by Dodd-Frank. According to the release announcing Schapiro’s resignation, “In each of the past two years, the agency has brought more enforcement actions than ever before, including 735 enforcement actions in fiscal year 2011 and 734 actions in FY 2012.”
According to several news outlets, the favorite to replace Chairman Schapiro is Mary J. Miller, currently serving as an under secretary in the Treasury Department. Miller was reported to have played a significant role in support of Secretary Geithner in the debt ceiling debates in 2011.
A dark-horse candidate is Neil Barofsky, the former special inspector general for the Troubled Assets Relief Program (TARP), and a former federal prosecutor. He ruffled some feathers with his outspoken criticism of Secretary Geithner and others regarding how TARP was executed. He detailed many of these concerns in his book, Bailout: An inside Account of How Washington Abandoned Mainstreet While Rescuing Wall Street. It is not believed that anyone within the administration has floated Barofsky’s name as a candidate, though a strong argument in his favor was made by Professor Simon Johnson in the Economix Blog of the New York Times, on November 22. Here is a link to his post: http://economix.blogs.nytimes.com/2012/11/22/mary-miller-vs-neil-barofsky-for-the-s-e-c/.
The link to the entire release announcing Chairman Schapiro’s resignation is here. http://www.sec.gov/news/press/2012/2012-240.htm
James W. Kraus, of Pietragallo Gordon Alfano Bosick & Raspanti, LLP, has been selected as the recipient of the DRI’s Albert H. Parnell Outstanding Program Chair Award which will be presented during the DRI Annual Meeting on October 17 in Chicago, Illinois. This award honors a program chair who created a dynamic educational program enhancing… Read more »Read More
James W. Kraus has been appointed to serve as the Chair of the Directors and Officers Coverage Subcommittee of the Defense Research Institute’s (DRI) Government Enforcement and Corporate Compliance Committee (GECC). DRI is the largest international membership organization of attorneys defending the interests of business and individuals in civil litigation. The GECC provides opportunities for education… Read more »Read More
Pietragallo Gordon Alfano Bosick & Raspanti, LLP Partner Eric G. Soller is Program Vice Chair of the 31st Annual Academy of Trial Lawyers of Allegheny County’s Federal Practice Program titled “Winds of Change in the Federal Courts.” The Program will take place on Friday, December 13, 2019 at the Omni William Penn Hotel in Pittsburgh,… Read more »Read More
Pamela Coyle Brecht has been invited to speak at this winter’s ACI’s False Claims and Qui Tam Enforcement program, taking place on January 27-28th at the Park Lane Hotel in NYC. This advanced forum on False Claims and Qui Tam Enforcement is designed to provide up-to-date guidance and analysis from the most respected false claims… Read more »Read More