Senator Elizabeth Warren (D-Mass.) sent a letter to the Chairman of the Securities and Exchange Commission Mary Jo White today. The subject of the letter is her disappointment with the SEC and the way it handles Wall Street crooks, in particular, the chair herself.
“You have now been SEC Chair for over two years, and to date, your leadership of the Commission has been extremely disappointing,” wrote Warren. “I am disappointed by the significant gap between the promises you made during and shortly after your confirmation and your performance as SEC Chair.”
That’s not to be taken lightly. As Warren explains, the Securities and Exchange Commission “plays a critical role in the protection of consumers and investors.”
As Zach Carter at the Huffington Post points out:
Under White’s tenure, the SEC has routinely granted waivers to companies that have been found guilty of fraud or that have been sanctioned by regulators for serious abuses. Those waivers have undermined automatic sanctions for companies that break rules, including additional scrutiny for securities offerings, and expanded liability for fraud or false statements from executives.
Warren felt that she had personally been deceived by White, as the two had met and discussed White’s plans for her time at the SEC.
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.
Even worse, at that same meeting you provided me with what appeared to be misleading information about the timing of new CEO pay disclosure rules that was contradicted by an Office of Management and Budget (OMB) publication released that very same day. My questions and your answers at that meeting were both clear; there could not have been a misunderstanding, and I am perplexed as to how and why you would have provided me with this misinformation.
Warren remains a voice for the everyday American in the Senate. It appears that holding position is turning her into an enemy of certain members of the leadership at the SEC. And Elizabeth Warren is not someone you want to have as an enemy.