A golden opportunity — which Dems may miss

June 3, 2005

Chris Cox’s nomination to lead the Securities and Exchange Commission is a unique opportunity for Dems. Because the post needs Senate confirmation, Dems can highlight Cox’s record of hostility for corporate regulations as further evidence of the Bush administration’s willingness to comply with the demands of Wall Street lobbyists.

If only Dems would take advantage of the opportunity.

I was anxious to see the reaction from lawmakers in today’s papers to Cox’s nomination to gauge what kind of opposition Cox might face from Senate Dems. Senate Banking Committee member Chuck Schumer (D-N.Y.), for example, said he would wait to get more information about Cox’s views before deciding how to vote on him, though he’s approaching the nomination with some skepticism. Fine.

At least one important Senate Dem, however, took the opposite approach.

While some anticipated a tough confirmation process, no one Thursday predicted that he would be blocked. Indeed, Democratic California Sen. Dianne Feinstein, who had held back supporting Cox when he was a possible judicial candidate for the U.S. 9th Circuit Court of Appeals, agreed to introduce him to the Senate Banking Committee, which will consider his nomination.

“I have no reason to oppose him and believe he’s qualified to do the job,” Feinstein said.

I can appreciate that Feinstein may have some home-state loyalties to consider here, but if she can’t think of any reason to oppose Cox’s nomination, she’s just not paying very close attention to the guy’s record. For goodness sakes, the NYT described Cox today as “a devoted student of Ayn Rand, the high priestess of unfettered capitalism.”

If Dems were planning to put up some kind of resistence here, Feinstein is helping to end the fight before it begins.

Post Script: I acknowledge from the outset that this is largely irrelevant, but to help provide context to Chris Cox’s style of politics, I thought I’d highlight this quote from earlier this year:

“America’s Operation Iraqi Freedom is still producing shock and awe, this time among the blame-America-first crowd,” [California Rep. Chris Cox] crowed. Then he said, “We continue to discover biological and chemical weapons and facilities to make them inside Iraq.”

What does Cox’s bizarre beliefs about non-existent weapons of mass destruction have to do with his ability to head the SEC? As far as I can tell, not much. But it’s a reminder that Cox certainly isn’t part of the “reality-based” community.

Does the Quinnipiac Poll have a clue? Check out this guy’s online poll of over 5 times the number of participants who say just the opposite on the outcome of Tuesday’s Republican primary:
http://209.200.114.87/

  • I think Democrats need to be very careful here. It is one thing to oppose judges that have lifetime tenure, and even another on Bolton given that the WH doesn’t want to give up documents, but this is the SEC chair. Do Democrats really want to oppose everyone that Bush nominates for every position?

  • Here we go again. Just as with Bolton, it looks as though we, the people, will have to lead our leaders in how and why they should carry out their Constitutional duties. I am constantly amazed at just how obtuse Feinstein can be at the oddest times, but follow the lead very well at other times. Does Steve Clemons at the Washington Note, or maybe you, Mr. Carpetbagger, have enough inside experience and contacts to lead the opposition?

    As much damage as Bolton could commit and allow to the U.S. interests at the United Nations, which is considerable, it pales in comparison to the damage that Cox could do as the head of the SEC. Anyone with any academic knowledge and understanding of the Great Depression knows that securities swindles were one of the principal causes — if not THE principal cause — of the Depression. Frauds were so massively perpetrated on the unsuspecting public that, once government regulation was demanded by the public — the Securities Act of 1933 and the the Securites and Exchange Act of 1934 being the notable ones on the federal level, plus protective laws adopted by individual states — all of these laws were called, euphemistically, “blue sky laws” because that is what the fraudsters sold, the blue sky. They were the 20th Century’s version of the 19th Century snake-oil salesmen.

    Some of the immediate past SEC heads appointed by Bush have been too weak to be effective, either by not enforcing the laws at all OR, if they tried to enforce the laws, too easily caved in when business and Rethug politicians criticized him. We need someone akin to Elliot Spitzer, coupled with a real return to legislation for the regulation of business for the effective protection of shareholders and those they represent (e.g., pension funds, city and state funds, etc.), to truly bring back a robust exchange-based economy.

    And these fools expect us to trust the stock exchanges to handle our Social Security funds? More snake oil being peddled by Bush, or the fraudsters selling more of the blue sky.

  • Well, I’m grateful that Senator Feinstein isn’t Rick Santorum or Tom Coburn or John Cornyn, but I guess I can empathize with the desperate housewife who, referring to her loveless marriage, has to settle for, “At least he doesn’t beat me.” Maybe when she gets a chance to read the paper….. Never mind.
    . . . jim strain in san diego.

  • Luckily we have people like Elliot Spitzer who help to keep corperations in line, if the SEC won’t.

    You can make the argument that every position in the Administration is important, but nobody cares about the SEC chair, and since we may have a real political fight this summer on the Supreme Court, lets just hold our nose and accept this one. Besides, it gets him out of the House.

  • Anyone know Feinstein’s number in DC? I’m a constituent and I’ll call her office…

  • SoloD,

    If one were to look at the influence that corporate corruption has on EVERY aspect of EVERY ordinary American’s life, it is easy to see the SEC Chairman IS an extremely important position. Think about it: the vast majority of business in this country is controlled by those businesses that are either subject to registration by the SEC or have securites that are regulated by the SEC. With Enron as the poster child, and with lax enforcement of the watered-down Sarbanes-Oxley Accountability Act, and with a complete lack of oversight by the Congress of these corporate excessess and the unconscionable devastation to their workers, retireees and shareholders, it is easy to see that this is so. To believe otherwise is clearly myopic, naive, or fraudulent in its own right.

  • Analytic Liberal,

    What lax enforcement of Sarbanes – Oxley (“SOX”)? I am a securities lawyer and do not think that is the case. The appication of SOX is still being worked out. It is a huge cost on the economy with possibly very little benefit to investors. SOX is encouraging more companies to go private, especially small and medium capitalization companies because the cost of compliance is too high. This cuts off this companies from the US equities market. European and Asian companies are also rethinking listing in the US markets because of SOX. It is mostly a boon to the big accounting firms who were just as culpable as anyone else in the accounting scandals.

    Cox should be fine at the SEC. The Dems should not attempt to block him, not that they could anyway. Focus on Bolton and the Supreme Court, Cox gets 80 plus votes to confirm.

  • Before you give Chris Cox a pass visit the OC WEEKLY site and learn a little about the Newport Beach Congressman and his past as a securities lawyer. The ask if some scrutiny wouldn’t be in order?If Bush keeps making horrendous appointments let us call him on them.

  • It’s a pattern, Reagan started it, and Shrub has raised it to high entertainment: to destroy or neuter an agency, appoint someone to head it who hates it worse than death. Hence Bolton and Cox.

    I’m convinced that Shrub and Rove sit up giggling sadistically over these.

    Yes the Democrats must oppose EVERY SINGLE ONE of these miserable fucks. With varying degrees of vehemence, of course, but with uniform consistency and adherence to principle. To cave in on this is unconscionable. Hell, the Enron and WorldCom heists are still being prosecuted, and this week the SCOTUS overturned the Arthur Anderson conviction too.

    Feinstein’s office is getting an earful tomorrow office.

  • Anyone with any academic knowledge and understanding of the Great Depression knows that securities swindles were one of the principal causes — if not THE principal cause — of the Depression. Frauds were so massively perpetrated on the unsuspecting public

    Fraud may have contributed to the bubble, but monetary policy made the bubble possible, and regulation made the Depression.

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