The Potential Democratic Nominees to the SEC

The Washington Post has an interesting story about the behind the scenes efforts in connection with the appointees to the SEC.  The article notes that the current front runners have a background that at least superficially seems more pro-business than pro shareholder, sending "an understandable chill down the spines of investor groups."

An article in Roll Call, dated October 22, 2007, indicated that at least some pro-shareholder groups were supporting two potential candidates,Jim Cox, a professor of law from Duke, and Elisse Walter, the Senior Executive Vice President, Regulatory Policy & Programs at FINRA (formerly known as the NASD) (and my former boss at the SEC during the 1980s) have strong, pro-shareholder leanings.  Among other things, Jim Cox engineered the filing of a pro-investor brief in the Stoneridge litigation.  He is well known in the academic community and well liked.  He also has considerable expertise on the securities laws. 

The Commission by law cannot have more than three members from the same party.  Currently, there are three Republicans and one Democrat.  Commissioner Campos, a Democrat, has resigned, creating a vacancy, with the other Democrat, Commissioner Nazareth, having announced that she will step down.  Effectively, therefore, two seats are open.  These seats are critical, particularly critical issues of shareholder rights currently facing the Commission (including the access proposal).  While the president has the authority to appoint the candidates, only names submitted by Democrats in the Senate will be confirmed.  The Commission would benefit from either Cox or Walter.