Senator Elizabeth Warren rips SEC Chair for “inconsistencies”
From staff reports
June 3, 2015
In a 13-page letter signed June 2, Senator Elizabeth Warren (D-Mass.) excoriated U.S. Securities and Exchange Commission (SEC) Chair Mary Jo White for failure to protect American investors and consumers from finance industry corruption.
The letter criticizes the SEC head for:
*Failing to implement CEO to median worker pay disclosure rules
*Failing to curb the award of waivers to companies that violate securities laws
*Settling “the vast majority of cases” without making lawbreaking companies admit guilt
*Recusing herself from “numerous” cases because of conflicts of interest due to her prior Wall St. employment and her husband’s current Wall St. employment.
The letter also says White failed to:
– Address calls for corporations to disclose campaign donations to stockholders
– Created loopholes that allow banks to get around disclosing information about asset-backed securities to investors
– Preempted state consumer protections designed to protect investors in mid-sized companies securities.
Warren expressed concern that White provided information to Warren at a May 21 meeting that was contradicted by an Office of Management and Budget (OMB) release the same day.
Warren gave White until July 1 to explain her actions.
“The public relies on the SEC to act as the cop on the beat for an honest marketplace,” Warren notes in the letter.
Read the full letter here: