Grassley Reforms In Place At The SEC

Press Release

Senator Chuck Grassley today said he was glad to get a report from Securities and Exchange Commission Chairman Mary L. Schapiro that reforms he recommended almost two years ago, after investigating claims that an SEC lawyer had been fired for protesting a decision to give special treatment to a Wall Street CEO, have been implemented by the SEC.

Grassley said that investors and the marketplace should benefit from these changes, which standardize procedures, prioritize resources, increase transparency of external communications and internal recusals, establish guidelines for handling employee complaints and dismissals, protect whistleblowers and recognize the independence of the Inspector General for the SEC.

"The case that resulted in the 2007 report was a violation of the public trust by the agency that's supposed to protect investors and maintain a fair market," Grassley said. "The fact that the recommendations have been put in place, and most of it done before this year, is encouraging, even while it's still hard to believe that no SEC official was ever held accountable for the misconduct in the Pequot Capital Management case."

Grassley asked for a report on the status of the recommendations he made in August 2007, in a report issued with Senator Arlen Specter, during Senate debate last month regarding an amendment to give the SEC additional money for enforcement. A copy of the detailed accounting from the Chairman is posted here and http://finance.senate.gov.

In the letter, which was delivered on Friday, Schapiro wrote, "I take very seriously the charge that I have been given to restore the SEC's reputation and credibility as the investors' watchdog. I also know that this can only occur if this organization is managed in such a way that employees are supported in the work that they do, are engaged toward a clear and common mission, and accept the need for greater transparency and accountability that is part of public service."

The news release below describes the additional resources approved by the Senate for the SEC and the Inspector General of the SEC in anti-fraud legislation sponsored by Grassley that passed the Senate last month. The House recently passed the Senate bill with some amendments. The House version is now awaiting action by the full Senate. The August 2007 report by Grassley and Specter is posted at http://finance.senate.gov. Click on legislation, then scroll down Legislative Archives. Click there and go to the document dated August 3, 2007.

Source