Sen. Elizabeth Warren’s shot across the bow of the SEC surprised enough people to warrant blanket press coverage Tuesday.
And with good reason. Advisen data suggest that, at least from a D&O perspective, the chairman of the Securities and Exchange Commission has been activist since her appointment two years ago.
The Massachusetts Democrat, though, detailed her disgruntlement in a 13-page letter.
It includes the SEC’s “failure to finalize rules requiring disclosure of the ratio of CEO pay to the median worker; its failure to curb the use of waivers for companies that violate securities law; the agency’s continued practice of settling the vast majority of cases without requiring meaningful admissions of guilt; and Chair White’s repeated recusals related to her prior employment and her husband’s current employment,” a statement accompanying the letter said.
Warren also expressed concern with the SEC’s “failure to address undisclosed corporate campaign contributions, the agency’s rulemakings that have created large loopholes in Dodd-Frank disclosure rules, and its rules for small business capital formation that preempted important state consumer protections.”
The letter itself said, in part, “I am disappointed by the significant gap between the promises you made during and shortly after your confirmation and your performance as SEC Chair. We have continued to talk, and you and I met personally on Wednesday, May 21, 2015, to discuss these issues. At that meeting, however, you said little that indicated you would be changing your practices at the SEC.”
The SEC chairman’s riposte was swift, according to multiple reports.
“I am very proud of the agency’s achievements under my leadership, including our record year in enforcement and the Commission’s efforts in advancing more than 30 congressionally mandated rulemakings and other transformative policy initiatives to protect investors and strengthen our markets,” White said. “Senator Warren’s mischaracterization of my statements and the agency’s accomplishments is unfortunate, but it will not detract from the work we have done, and will continue to do, on behalf of investors.”
