SEC chairman responds to McCain

Posted: Thursday, September 18, 2008 4:42 PM by Mark Murray
Filed Under: Economy

From NBC's Mark Murray
SEC Chairman Chris Cox just released this statement: "While I have great respect for Sen. McCain, we have sometimes disagreed, and this is one such occasion. The SEC has made plain that we have zero tolerance for naked short selling. In this market crisis, the men and women of the SEC have responded valiantly as they always do -- with the utmost dedication and professionalism. Addressing the extraordinary challenges facing our markets, the independent and bipartisan SEC has taken the following decisive actions."

More: "I very much appreciate the strong and immediate support of the president. As someone who has been in public life for over 20 years, I know as well as anyone that occasionally this sort of thing can come with the territory. The best response to political jabs like this is simply to put your head down and not lose a step doing the best job you can possibly do on behalf of those you serve. For my part, I plan to do just that. I leave the political campaigns to pursue their own course."

There is also the question whether McCain -- constitutionally -- could actually fire Cox if he were president. A 1935 Supreme Court decision said that FDR overstepped his bounds when he tried to dismiss a commissioner at the Federal Trade Commission.

However, the McCain camp argues that McCain could remove Cox as chairman, since the president gets to designate one of the SEC commissioners as chairman. "Not only is there historical precedent for SEC Chairs to be removed, the president of the United States always reserves the right to request the resignation of an appointee and to maintain the customary expectation that it will be delivered,” said spokesman Tucker Bounds in an email.

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Comments

I am a Canadian and a Chucky T fan (you have a many fans here in Toronto!). It is amazing that Americans don't see what an incompetent person John McCain and his sidekick Sarah Palin is. Canadians are praying and biting our fingernails hoping that Americans see the light and vote for Obama/Biden.
ST

Sari T, Toronto, Ontario (Sent Thursday, September 18, 2008 5:33 PM)

The point if he can fire him or not is moot. He is not going to be president.

Frankie D, Union, NJ (Sent Thursday, September 18, 2008 5:35 PM)

If I were head of the SEC I would fire McCain!

smartest guy in the room (Sent Thursday, September 18, 2008 5:35 PM)

This is simply because the McCain campaign is playing games. To them, the voters are like a chessboard, and each person on the campaign is a moving piece of the game. They will say what they need to (i.e. "the economy is strong") in order to get people to back them, and then when things don't work out the way they want, the story will radically shift so that people can't tell.

They did the same thing with Palin and her "anti sex-ed" viewpoint, which coincidentally was switched around quite promptly when we all found out her unwed teenage daughter was indeed pregnant. This is all a WORDS game.

And Obama is quite right. America is not in such a state to risk playing it. Maybe back in the 1990's, when things were better and we could afford to lose some prestige in the world, lose some financial stability. But now? NO WAY. Enough truly IS enough.

D'Arcee Neal, Temple Hills, Maryland (Sent Thursday, September 18, 2008 5:39 PM)

McCain has chosen the SEC Chair because he most closely identifies with the only response available to him. He cannot blame Commerce or Banking Committees which may work with SEC because he and Graham are part of them. Nor can he blame Bush. The SEC is not a corporate auditor, though they require companies to conform to existing regs. The financial sector has been asking these companies to open their books since 2/3 of the S&P had to restate their earnings back in 02-04+ (Sarbanes -Oxley). Come on the SEC to regulate the Ins, Mortg, Inv. Bank, and Bank sectors. It evidences one thing only, economics is not his strong suit

Ken Philadelphia PA (Sent Thursday, September 18, 2008 5:40 PM)

too late for Cox to hide behind today's actions, too. Let's ask him about the dates of the articles written at www.deepcapture.com and www.thesanitycheck.com
for that matter, look at the comments that go back for months at proposed rules at http://www.sec.gov/comments/s7-08-08/s70808.shtml

KeithK (Sent Thursday, September 18, 2008 5:41 PM)

Chairman Cox was unanimously confirmed by the US Senate in 2005. The deregulation of the banking industry predates Chairman Cox by decades and was primarily championed by Republicans, McCain included.

Today "I would fire" nonsense is just more posturing.

John, Morgan Hill, California (Sent Thursday, September 18, 2008 5:41 PM)

Looks like MCain just admitted this was another meaningless grandstanding play on his part. The president has no authority to fire Cox. He can name another SEC member as chairman, but Cox would continue to have the same vote he holds now.

That's why the original McCain statement referred to the chairman serving "at the appointment" of the president instead of "at the pleasure" of the president. If he did recognize the difference, he was just blowing hot air to deceive voters. If he didn't know the difference, he said he'd do something (fire Cox) that's against the law. Once again, he'd be ready to ignore the law just like his hug-buddy Bush.

Joe Don, Topeka, KS (Sent Thursday, September 18, 2008 5:42 PM)

It's pretty amazing how the Republicans are calling Obama liberal, socialist what have you.

I got news for you folks, the situation we are in now with the Government saving these financial institutions is as socialist as you can get. Even Canada doesn't do that. Canada is proud of it's universal health care among other things but even they didn't go this far.

And whose administration is responsible for this? That's right - the Republicans. So before you folks cry socialist, try to look for it's definition and then the mirror.

This is like the people questioning Barrack's patriotism yet turns a blind eye on Sarah Palin and her husband's membership to an organization that wants Alaska out of the union. Hypocritical is an understatement.

MSNBC does not have the gut to post this.

Joyce, NY (Sent Thursday, September 18, 2008 5:48 PM)

Can someone tell me what exactly Mr. McCain's plan is?
Cindy, Portland, OR
*****

If and when he ever comes up with a plan, I am sure someone will say something. At the moment, the repub ticket is running on rhetoric, hot air and generic scripted answers. Toss in some rah rah flag waving, fear mongering, and 'good 'ol down to earth folks, heeehaaw' for good measure.

DV, CA (Sent Thursday, September 18, 2008 5:49 PM)

@Cindy, Portland, OR

You go girl!!!

BrendaF, Mesquite, TX (Sent Thursday, September 18, 2008 5:50 PM)

WHile McBroke argues symantics over who he can hire and fire, we will join the Obama push for Change We Can Believe In.........whenever you are done, come and join us

KNOWLEDGE IS THE WAY (Sent Thursday, September 18, 2008 5:54 PM)

I'll tell you waht McCain's plan is! It's to wait for Obama to think it up first and then McCain will try his damnedest to crib a cheap version of it and claim that it was all his original idea!

The Republicans have been so blatantly playing Follow the Leader with Obama that I'm surprised that NO ONE in the media has commented on it.

ESH, NYC, NY (Sent Thursday, September 18, 2008 6:01 PM)

McCain couldn't fire the SEC Chairman. Only Congress can do that.

Once again he has overestimated himself.

Jack, Santa Cruz, CA (Sent Thursday, September 18, 2008 6:02 PM)

Why can we all see this McSame guy is not OK!... fighting yourself is strang... What is the medical therme?

Shubert, NY, NY (Sent Thursday, September 18, 2008 6:05 PM)

John McCain recently has had alot of misstepsas well as Gov. Palin i nthe bridge to no-where, and talk about the deer looking at the headlights no pun intended on the Charlie Gibson question about the "Bush Doctrine" I am a rReagan Democrat who voted for Bush 41 the first time twice for Clinton and Twice for Bush 43. I was leaning McCain but I think I've heard enough. I'm supporting change that I can believe in.

Raymond Mondragon Clovis, New Mexico (Sent Thursday, September 18, 2008 6:05 PM)

Old McBush sounds about as bright as his vp choice who has 2 books in her library and one of them is not even colored in yet

Gil Dively Winchester, Va. (Sent Thursday, September 18, 2008 6:06 PM)

Please don't be fooled by McCain's posturing. It was McCain, led by his economic advisor Phil Graham(who was senator at the time), that led the passing of all the de-regulation that got us in this mess. Like Cindy said "he took the teeth out of the SEC". You can't give cops whistles, and expect them to police the streets. Then when crime runs rampant turn around and fire the police chief for not being able to do his job...

GSJ, Minneapolis, MN (Sent Thursday, September 18, 2008 6:09 PM)

Poor John, unsuccessfully trying to make it look like he knows what he's talking about and stimulate the image that he's different. Helps to know how markets actually work (and therefore need to be regulated on some issues) and what a president legally can do.

Barry, New Brunswick (Sent Thursday, September 18, 2008 6:12 PM)

Sen. McCain's passing the buck again. He and the rest of the Republicans have done everything they can to destroy Gov. Programs and Commisions to make them appear that they won't work. Don't ya see Martha.

Rich Shell (Sent Thursday, September 18, 2008 6:34 PM)

It would appear that McCain and Palin are having a contest to see who can shoot from the hip fastest without taking time to check facts before the "shoot" off their mouths. Republicans, are you still sure about these clowns?

A.Brocco,Albuquerque,NM (Sent Thursday, September 18, 2008 6:35 PM)

Is this what we can expect from a McCain/Palin White House - one constitutional challenge after another? I guess we didn’t learn anything in the past seven years from an administration has little regard (and respect) for the rule of law.

I guess it OK because according to Governor Palin its Gods will that Chairman Chris Cox be fired.

Hector, Lexington, KY (Sent Thursday, September 18, 2008 6:39 PM)

McCain doesn't know which way is up! He didn't want AIG to be bailed out then backtracked and said he was for it when economists said if it hadn't happened the fallout would have been far, far worse for the economy.

He admitted during the primary campaign that he didn't have as much experience in economics as he hoped but touted his 'war' experience. Now he is touting that he is more experienced than Obama as Chairman of the Commerce Committee. My goodness, get a story and stick to it!!! It sickens me!

A woman for Obama in Las Vegas, NV (Sent Thursday, September 18, 2008 6:42 PM)

I think old age is catching up with McCain. He either changes his tone or does not remember what he has done in the past. He is out of touch with the reality. Are we ready to elect this man the next President of America?

S.Modi, Brooklyn, NY (Sent Thursday, September 18, 2008 6:56 PM)

S.Modi, Brooklyn, NY (Sent Thursday, September 18, 2008 6:57 PM)

first he wants to bomb Iran, then he wants to attack Russia in defense of Ossesia, now he wants to fire the SEC....and he's only PRETENDING to be president! Is there ANYONE he won't attack? Lord, please help this man. And help this country if he is elected.

denise, Tampa, FL (Sent Thursday, September 18, 2008 6:59 PM)

As a liberal democrat and a CPA, I was suspious when Chris Cox was appointed to the SEC. But I think he has done an outstanding job of trying to balance regulation and cost-effectiveness. He has worked diligently to apply the Sanbanes-Oxley requirements to business financial statements, and also to update SEC rules and procedures. John McCain's call for his ouster is just a phony attempt to create a scapegoat out of someone who's not associated with his campaign. The law that repealed the long-standing Glass-Steagall Act from the 30's which regulated banks was put through Congress by-are you ready-McCain's number one advisor, the infamous Phil Gramm. McCain is a lying sack of you-know-what.

Barry in Texas (Sent Thursday, September 18, 2008 7:05 PM)

Would he appoint a new chairman with as much thought as for his VP choice?

mexed (Sent Thursday, September 18, 2008 7:08 PM)

If this is one of McCains measured, calm, well planned reforms that he is talking about, I am certainly not reassured that he can be the President. Is this his 3AM phone call response?

Did he talk to his buddy Phil Graham (guhru of his economic plan) ...or is this his maverick behavior?

Sorry, if I was ever going to vote for him...NOT NOW.

afisher (Sent Thursday, September 18, 2008 7:11 PM)

McCain, once again is slow on the draw. Blaming one person for the mess of 8 years of Bush with most of that time of Republican control of the government is a cop out.

McCain has no idea of what's involved with the economy. And don't even bring up Gov. Palin who's claim to fame is being a neighbor of Russia.

Tom kaye (Sent Thursday, September 18, 2008 7:11 PM)

McCain seems to have knee jerk reactions. It's as if he feels compelled to do something to give the appearance of meaningful leadership. Upon modest reflection however it is obvious that his action was merely a distraction and does nothing to address the real problem. We know he does not care about nor understand the domestic issues. Is this a personal vendetta?

Today we learn that he may not be as competent about foreign affairs either. Refusing to meet with a NATO ally (Spain) adds another country to his list of unlikely friends. What makes this interesting is that it was an unnecessary rebuke. We gain nothing while losing a partner in Afganistan and a friend who happens to run the seventh largest economy in the world. Maybe this was a personal vendettal too.

insearchoftruth (Sent Thursday, September 18, 2008 7:29 PM)

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