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Should You Be Concerned About Obama’s New SEC Chairman Pick?

Jan. 29, 2013 8:11am

She put legendary mob boss John Gotti (i.e. the “Dapper Don”) behind bars, she prosecuted Omar “The Blink Sheikh” Abdel Rahman, and her office in 1998 indicted Osama bin-Laden for attacking U.S. embassies.

President Obama Picks Mary Jo White to Head up SEC, a Few Thoughts

An unholy trinity (L to R): John Gotti, “The Blink Sheikh,” & Osama bin-Laden. (Getty Images).

Now ex-federal prosecutor Mary Jo White has a different kind of assignment: Keep high finance under control as the new head of the Securities and Exchange Commission (SEC).

If confirmed, White would have the duty of enforcing and fine-tuning the Dodd–Frank Wall Street Reform and Consumer Protection Act.

“You don’t want to mess with Mary Jo,” President Obama said last week with White at his side. “As one former SEC chairman said, Mary Jo does not intimidate easily, and that’s important because she’s got a big job ahead of her.”

White would replace Elisse Walter, who has been acting as interim chairwoman since former director Mary Schapiro’s resignation in December.

President Obama Picks Mary Jo White to Head up SEC, a Few Thoughts

President Barack Obama announces in the State Dining Room of the White House in Washington, Jan. 24, 2013, that he will nominate Mary Jo White, right, to lead the Security and Exchange Commission (SEC), and re-nominate Richard Cordray, left, to lead the Consumer Financial Protection Bureau, a role that he has held for the last year under a recess appointment. (Alex Wong/Getty Images).

However, although White has a reputation for being “tough, no-nonsense and fiercely competitive,” as the Associated Press puts it, there are a few things U.S. Senators may want to consider during her confirmation hearings.

First, there are concerns about her connections to Wall Street heavyweights (i.e. the people she would be regulating).

From the Wall Street Journal (emphases added):

Ms. White has spent the past decade as a leading white-collar defense lawyer at Debevoise & Plimpton. Her husband John White is a partner at law firm Cravath Swaine & Moore LLP.

Gary Aguirre, a former SEC investigator and whistleblower who has sparred with Ms. White in the past, said she has been “Wall Street’s protector-in-chief” for the past few years.

As head of the SEC, ethics rules would likely bar Ms. White for two years from working on certain matters—including enforcement actions—that directly affect Debevoise, her clients from the past two years or any of her husband’s clients that he is representing before the agency.

“She’d have to recuse all over the place” from SEC votes on policy and enforcement, according to one lawyer who knows her well. Ms. White didn’t respond to a request for comment.

An SEC spokesman says she would sign before confirmation “an ethics agreement that includes recusals based on laws and the Obama ethics pledge.” She also will consult with the SEC’s ethics office on any other potential recusal issues that arise, the spokesman adds.

Of course, some see her familiarity with Wall Street as a major plus.

“[Her] experience isn’t necessarily a negative. Franklin Delano Roosevelt made Joseph Kennedy the first SEC chairman after its creation in 1934, supposedly reasoning that the financier would know how to police markets that were perceived as crooked,” writes Josh Boak for the Financial Times.

“White would be the first prosecutor to head the SEC and, despite her links to banks and bankers, her selection is widely seen as a signal that the administration is looking to take a tougher stance on Wall Street misbehavior,” he adds.

President Obama Picks Mary Jo White to Head up SEC, a Few Thoughts

Mary Jo White pictured at a press conference in 2011, when she was U.S. Attorney for the southern district of New York. (Getty Images).

Likewise, Glenn Colton, who worked as a prosecutor for White and currently leads the white-collar practice at law firm SNR Denton, told the WSJ that her connections “can only aid her ability to do what government is supposed to do, which is to consider all sides of an issue.”

Second, there are questions regarding whether she is qualified for the job.

“Her background is in litigation — as a prosecutor and defense lawyer — rather than as an administrator or policymaker. This presents the danger that she may see maximizing jail terms rather than expanding wealth creation as her goal,” James Gattuso writes for the Heritage Foundation. (Emphasis added)

But he also notes that this could be an asset.

“Alternatively, her litigation background could be an advantage– if it leads to focus on prosecuting actual crimes (think Bernie Madoff) rather than expanding regulation. These are questions that should be explored by Senators as they consider confirmation of White to this position,” he adds.

President Obama Picks Mary Jo White to Head up SEC, a Few Thoughts

Mary Jo White (AP Photo/Cliff Owen)

Whatever the case, if confirmed, White vows to work to “fulfill the agency’s mission to protect investors and to ensure the strength, efficiency and the transparency of our capital markets.”

“The SEC, long a vital and positive force for the markets, has a lot of hard and important work ahead of it,” she said.

Final Thought (via Forbes’ John Wasik):

Anyone who put the “Dapper Don” John Gotti in jail, beat Trump and convicted terrorists is off and running for a job that involves policing the thieves’ den known as high finance. She might have to bone up on structured products, derivatives and high-frequency trading to get the lay of the land, though. It’s a steep learning curve, but one that she might relish.

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Featured image courtesy Getty Images.

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Comments (36)

  • GuruMeditation
    Posted on January 30, 2013 at 7:45am

    I am concerned about all of his picks.

    Report this comment

    GuruMeditation  
  • TouchStoneMT
    Posted on January 29, 2013 at 5:48pm

    I see zero reason to confirm ANY of King Putt’s czars.

    Report this comment

    TouchStoneMT  
  • KIOTI-TEXAS
    Posted on January 29, 2013 at 4:21pm

    The first question Obama ask them are you a LIAR and HATE AMERICA????? You have the job,because you are just like me……..A LIAR……

    Report this comment

    KIOTI-TEXAS  
  • Arshloch
    Posted on January 29, 2013 at 12:45pm

    You should be concerned about ANY obummer choice for ANY position, even dog catcher.

    Report this comment

    Arshloch  
  • walnutportconservative
    Posted on January 29, 2013 at 12:16pm

    What Difference does make? What does it matter?

    Report this comment

    walnutportconservative  
  • zoro51
    Posted on January 29, 2013 at 11:43am

    trust no socialist appointee nor socialist crony… IMPEACH N REMOVE OBAMA NOW

    Report this comment

    zoro51  
  • jungle J
    Posted on January 29, 2013 at 10:20am

    they all look alike…hate filled but restrained until the lights go out. Maybe there really are zombies.

    Report this comment

    jungle J  
  • Vickie Dhaene
    Posted on January 29, 2013 at 10:15am

    If Obummbler nominated her, I won’t trust her.

    Report this comment

    Vickie Dhaene  
  • shandog
    Posted on January 29, 2013 at 10:09am

    She reminds me of Hettie on NCIS LA. Tough as nails..

    Report this comment

    shandog  
  • Ducky657
    Posted on January 29, 2013 at 9:31am

    How many androgynous people can this guy nominate? Seriously, I know the PC police will go nuts but that’s one ugly broad. She has a husband? Really?

    Report this comment

    Ducky657  
  • noslave
    Posted on January 29, 2013 at 9:31am

    DIDNT SHE SING ??”I REPRESENT THE LOLLYPOP LEAGUE”with the rest of her crew??obamas payback to his supporters??whats with the chairman mao uniform??

    Report this comment

    noslave  
  • truthnstuff
    Posted on January 29, 2013 at 9:29am

    Of course we should be concerned about anyone 0bama picks. This guy is most likely………..oh wait, she must be a radical.

    Report this comment

    truthnstuff  
  • nothinghere
    Posted on January 29, 2013 at 9:24am

    o’bama picked her,enough said.

    Report this comment

    nothinghere  
  • ares338
    Posted on January 29, 2013 at 9:09am

    Where does he find these …uh…people?

    Report this comment

    ares338  
    • copatriots
      Posted on January 29, 2013 at 9:17am

      Haha! I didn’t know exactly how to phrase it but had the same thought.

      Report this comment

       
  • term limits for congress
    Posted on January 29, 2013 at 9:01am

    I have very little respect for lawyers. They have no interest in doing the right thing (or the legal thing) – only winning – just like barry and crew. So, what does barry need to win on Wall Street? Our 401k’s?

    Report this comment

    term limits for congress  
    • copatriots
      Posted on January 29, 2013 at 9:16am

      Excellent point! And, this is exactly why no one should put another penny in 401k. The money will not be “yours” when you retire. Oh….and the “tax free” status will be going away within the next 4 years.

      Report this comment

       
  • SpankDaMonkey
    Posted on January 29, 2013 at 8:58am

    .
    Should You Be Concerned About Obama’s New SEC Chairman Pick?

    No indeed we should not worry at all. Ok everyone on 3, we Clap like the good Trained Seals we are.

    OK 1…2….3……

    Report this comment

    SpankDaMonkey  
  • SamIamTwo
    Posted on January 29, 2013 at 8:47am

    More concerned about the MSMs allowing all of this crap going down!

    Report this comment

    SamIamTwo  
  • garbagecanlogic
    Posted on January 29, 2013 at 8:44am

    Who the hell let the “hobbit” out? I told you to keep the door closed. If she is selected and approved, do we have to install step ladders everywhere, and booster chairs in eating places?

    The U.N. Out Of The U.S.
    Praise Be To Obama. Psalm 109:8

    The U.S. Out Of The U.N.

    Report this comment

    garbagecanlogic  
  • NigelTufnel
    Posted on January 29, 2013 at 8:42am

    During the financial meltdown the Big Banks were the straw man. Never a mention of poor governement policy and regulation. During the health care debate it was the insurance companies. Now it’s ok to raise rates as they are now acting under the direction of the US government. I’m sure this gal has the smarts and talents to do this job but she is working for Obama and that spells trouble. Wall Street will be protected as Obama and Bernanke see it as their out. The low interest/loose money policy is designed to keep interest on the debt low and drive up 401k and home values so the middle class will feel comfortable enough to spend again. Just one problem. It’s not working. Americans were saving at a -2.2% rate before the downturn(the dems called it “overheated”. Now with interest rates at all time lows Americans are saving at a 4% clip. Bernanke wakes up everyday scatches his head and believes he should double down. It’s really quite funny to see very smart people make the same mistake over and over. The 48% who voted for Romney are saving at a rate of 6.7%. Now we are creeping up to Nixon/Carter era numbers when savings interest was 7%. I beg of someone to ask Bernanke of this cunundrum. Why are Americans hoarding cash when they are getting nothing for it? I would love to hear your thoughts.

    Report this comment

    NigelTufnel  
  • media-bias-steals-elections
    Posted on January 29, 2013 at 8:26am

    Senators will read that story and see this jump out at them?

    “She’d have to recuse all over the place” from SEC votes on policy and enforcement, according to one lawyer who knows her well. Ms. White didn’t respond to a request for comment.

    That was the best President Obama could do, does President Obama ever make a press release, after hours of discussions with Republicans, which considered the candidates “x,y,z”, I have chosen “x” because “y”? Yet what is the cherry picking media fond of doing? Accusing the GOP and Republicans of being partisan?

    We would love to see a shock wave of confidence, but the media historical coverage of events hinders that possibility? The GOP knows how to be extremely competitive?

    Report this comment

    media-bias-steals-elections  
  • MAULEMALL
    Posted on January 29, 2013 at 8:25am

    I thought Micky Rooney had passed…

    Report this comment

    MAULEMALL  
  • Chromo200
    Posted on January 29, 2013 at 8:24am

    within a year she will be like the others corrupt. Follow the money . She will somehow be a millionaire. She need a good retirement plan. POTUS does not surround himself with honest people.

    Report this comment

    Chromo200  
  • Eastinfection
    Posted on January 29, 2013 at 8:22am

    When did Mickey Rooney change his name to “Mary Jo”?

    Report this comment

    Eastinfection  
  • progressiveslayer
    Posted on January 29, 2013 at 8:20am

    Wow Moe Howard for SEC chairman,might as well see if she or whatever it is can have Curly and Larry as assistants.

    Report this comment

    progressiveslayer  
    • poorrichard09
      Posted on January 29, 2013 at 8:27am

      She looks like Rosa Kleb, the Russian agent in From Russia, With Love! OMG

      Yes, he seems to be filling his regime with all kinds of good little fascists.

      Report this comment

      poorrichard09  
    • Gonzo
      Posted on January 29, 2013 at 8:29am

      She definitely resembles him.

      Report this comment

      Gonzo  
  • Gonzo
    Posted on January 29, 2013 at 8:19am

    Quite frankly, I’m concerned with everything the man does.

    Report this comment

    Gonzo  

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