Monday, November 26, 2012

SEC facing deadlock after chief Mary Schapiro quits

SEC Commissioner Elisse Walter is named the new chairwoman of the agency, which will be effectively deadlocked — at least temporarily — on controversial issues.

WASHINGTON — Mary L. Schapiro's departure as head of the Securities and Exchange Commission will leave the agency — at least temporarily — deadlocked as it continues to try to enact tough reforms on Wall Street.
Schapiro, 57, said Monday that she will resign effective Dec. 14. President Obama quickly designated SEC Commissioner Elisse B. Walter as the agency's new chairwoman.
Walter is not expected to radically change the regulator's agenda. But her move will leave the five-member SEC commission one person short — and effectively deadlocked on controversial issues such as Dodd-Frank financial reform, new regulations for money market mutual funds and a push to rein in high-speed trading.
"With the resignation of Schapiro, we have two Republicans, two Democrats, and they won't agree on anything," said John Coffee, a securities law expert at Columbia Law School.
Walter, a former executive at the Financial Industry Regulatory Authority and the National Assn. of Securities Dealers, has been a commissioner since 2008. She served as chairwoman for a short period in January 2009 after the departure of former ChairmanChristopher Cox, before Schapiro was sworn in.
Since she already serves on the SEC commission, Walter could serve without Senate confirmation until the end of next year. But she would need Senate approval to stay longer as chairwoman, as would a nominee from outside the SEC. Obama has had difficulty getting nominees through the Senate, so the agency could remain one person short for a while.
The 62-year-old Walter said she was "deeply honored and humbled" to be the SEC's next chairwoman and praised Schapiro for doing "an exceptional job." She is mentioned as a possible long-term replacement. Other names floated are Mary J. Miller, assistant Treasury secretary for domestic finance, Sallie Krawcheck, a former executive at Bank of America and Citigroup, and Robert Khuzami, director of the SEC's enforcement division.
It's rare for SEC leaders to serve more than four years, and Schapiro's departure had been widely expected. The first woman to serve as a non-interim chief of the agency, Schapiro served longer than 24 of the previous 28 heads, the SEC said.

IMF, eurozone reach deal on Greek debt

@CNNMoney November 26, 2012: 9:11 PM ET
HONG KONG (CNNMoney) -- Eurozone finance ministers and the International Monetary Fund announced Monday they had reached an agreement that moves Greece closer to receiving a massive bailout payment.
The deal includes lower interest rates for Greece, and more time for the debt-laden country to repay its rescue loans. The measures could help cut Greek debt to targets of 124% of GDP by 2020 and lower than 110% in 2022.
"I welcome the initiatives agreed today by the Eurogroup aimed at further supporting Greece's economic reform program and making a substantial contribution to the sustainability of its debt," Christine Lagarde, the IMF managing director, said in a statement.
"This builds on the significant efforts by the Greek government to carry forward its fiscal and structural reform agenda," she said.


  1. I need some guest posts because I am getting burnt out at home. Just a comment or two with a story is fine, but I am taking some personal time after running this blog nearly every day for 3.5 years (everyone should have time off). Edgar you should have some pent up opinions to share. GAW I know you are working your butt off. Mugabe maybe just a couple of paragraphs about Spain. Precious Metals stories, bankster stories or just nice stories about the rebuilding of NJ and NYC. If you don't know my email it is I don't care if it is hard hitting or a fluff piece.

  2. Queen, I sent you a link to a 'Sandy' story and my comment.

    Greece deal? Isn't that a broken record?

    The way I see it, the Euro was flawed from the beginning. Seems to me that there were enough people against it back when it started that someone should have raised a warning bell as to what would happen when finances went south.

    Unlike many here, I'm fast becoming even MORE cynical. We'll keep printing to infinity and beyond. While bonds may collapse, IF/WHEN they do it will be because the 'powers that be' aren't getting enough moron to invest in stock and therefore set a match to the love of bonds. As I have them, I'm stuck. I am no longer buying BUT see no place to MOVE said money, either. Not when I'd either have to pay a big tax OR put them in stocks, which, to my mind are mostly overbought.

    How many iPads can you sell to someone who is hungry? Maybe we aren't all hungry enough yet. I am because I'm trying to watch my weight ;-)

    As for the fiscal cliff scenario--let's go for it. We should have 'fallen' before we instigated TARP. But, I'm sleep deprived as my eldest granddaughter decided to 'fall' and broke her arm quite badly yesterday. 50/50 chance she may have to be operated on to insert pins. We'll know next Monday.

    Life is really all a matter of what is relative to YOU. Health and happiness should be cherished and given main priority after essential needs such as food and shelter.

    I'm even getting tired of news and net. Really. To sit and listen to soothing music, watch the rain and the fire, make homemade soup and bread...that is feeding the soul.

  3. Queenbee, give me a lil' time to come up with a guest post for The Hive.

  4. Thanks everyone CL's link is to a couple of short vids and a slide show. Many are duplicates so just move to the next. The devastation is mind boggling. It appears worse that Katrina which is hard to believe.

  5. Things were going so well at home, but just to spare the details they are starting to revert back. Mental acuity (memory) and physical ability (being unable to walk) are both declining again.

  6. Sorry to hear that things are not going so well on the home health front. Having dealt with disabled family members, I know how tough it can be, so you deserve praise for soldiering on despite the adversity.

    If you need a guest post, run with that "AgriDollar" post from ZH I linked to, that was excellent analysis, and really helps to understand food supply and why the prices will keep rising.

    I'd write a guest post myself, but I just am too pressed for time. Time, time, we just never have enough time to take the time.

  7. cl - great comment as usual.

    Yes, the Greek tragedy stumbles on. As if anyone with half a brain thinks Greece will ever repay these debts. Germans must cherish their self-delusions, as they know deep down they are just throwing good money after bad with Greece, but can't bring themselves to admit it.

    This whole "deal" is just a farce designed to fool the markets until after the German election next year, following which (the 'planned' Merkel re-election) they will be forced to admit every EUro given to Greece has gone to money heaven, never to return.

    Just another can kick, which will be another lost decade for Greece. The only way they will ever recover is to default on their debt and leave the EUro, any other plan is just designed to prop up the rest of EUrope, not Greece, and to preserve the delusion that the EUro zone works.