The Securities and Exchange Commission will be a key regulator as
Washington continues to restructure itself in response to the expanding
financial crisis. SEC Chairman Christopher Cox has called for a combination of the agency
and the Commodities Futures Trading Commission, a key part of Treasury Secretary Henry Paulson's blueprint for regulatory reform. Whether the
agencies do combine, it won't be under Cox's watch, as he'll be leaving
after President-elect Barack Obama assumes the White House in January. So who might oversee such a change?
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Potential replacements in an Obama Cabinet reportedly include:
- Arthur Levitt, SEC chairman from 1993 to 2001
- Mary Schapiro, Finra CEO, who has experience working at both the CFTC and SEC
- John Olson, a partner at Gibson Dunn LLP and former head of the
American Bar Association's business law section's committee on corporate governance
"To combine both these agencies, you need someone with experience at both [CFTC and SEC]," said one securities attorney.
Other possible SEC chair picks include former SEC commissioners:
- Harvey Goldschmid
- Roel Campos
- Annette Nazareth
It would be easier for Obama to anoint an existing commissioner to
the chair position. Elisse Walter, who is on the commission, could fit
the bill.
However, Cox likely isn't the only one leaving the agency. Lower
level but still very important division chiefs at the SEC are on their
way out too. John White, who heads the SEC's corporate finance
division, is expected to step down, leaving the hefty task of figuring
out how to create a new derivatives disclosure regime to his successor.
Stanley Keller, a partner at Edwards Angell Palmer & Dodge LLP,
could replace White. - Ron Orol
Ron Orol is a Washington-based reporter for The Deal and author of Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World.
