Representative Christopher Cox Pledges to Build on Securities Regulations as Next SEC Chairman

Strategic Insights -

Representative Christopher Cox, the President's choice to lead the Securities and Exchange Commission, showcased his commitment to building on existing regulations during his confirmation hearing. Cox, a seasoned politician from Orange County, California, used the opportunity to demonstrate his stance on securities regulation, distancing himself from his critics' assertions that he is beholden to special interests. He pledged to enforce securities laws, fight for adequate agency resources, and uphold the role of state laws and prosecutors in policing markets. Cox's comments on expensing stock options and enforcing securities laws were significant, as he aimed to alleviate concerns about his potential to undermine recent regulations.

Key Takeaways:

  • Cox pledged to build on existing regulations, rather than undoing those implemented by his predecessor, William H. Donaldson.
  • He emphasized the importance of enforcing securities laws and prosecuting frauds, stating it as his top priority.
  • Cox expressed commitment to fighting for adequate resources at the agency, acknowledging the "substantial and vital role" of state laws and state prosecutors in policing markets.
  • He distanced himself from criticism of his past votes on securities law issues, saying he has always acted in the best interests of investors.
  • Cox emphasized the importance of accurate accounting for stock options, stating that he would not revisit the recent decision by the Financial Accounting Standards Board to require clearer accounting.
  • He praised his predecessor, Donaldson, as a "standup guy in very tough times," and expressed a desire to build on his record.
  • Cox's confirmation is widely expected, with lawmakers stating that the full Senate is likely to approve his nomination and two Democratic nominees on Thursday or Friday.

Statistics:

  • Cox has been a member of the House of Representatives for 17 years.
  • He has cast one vote out of 22 in support of investors on major legislation affecting investor rights (as reported by Public Citizen)
  • The Securities and Exchange Commission has implemented significant regulations in the last two years, including large corporate fines for securities violations and registration of hedge funds.

Sources:

  • Representative Christopher Cox's confirmation hearing transcript.
  • Public Citizen's report on Representative Cox's voting record (published on Monday).
  • The New York Times: "Cox Pledges to Build on SEC Regulations" (published on Tuesday).