Even his supporters acknowledged that former U.S. Rep. Christopher Cox was a controversial nominee to chair the Securities and Exchange Commission. A former corporate lawyer who had collected millions of dollars from business interests, wealthy CEOS and some of the country’s most prominent stock-market manipulators during eight campaigns for the House, Cox arrived with precisely the wrong resume for the head of an agency that is supposed to regulate the corporate sector and Wall Street. As such, his nomination represented a presidential poke in the eye to workers seeking protection of their pensions, small investors worried about being defrauded and consumers.
Of course, conservative Republicans in the Senate were enthused about Cox’s nomination. After all, the California Republican was a key player on the supply-side economic team, someone who had in the House sponsored legislation designed to make it harder for shareholders to sue corporations that engage in scandalous practices. He has, as well, been one of the Congress’s most ardent defenders of “creative bookkeeping” by the nation’s top corporations — supporting schemes such as the one that allowed corporations that pay employees with stock options to avoid reporting those payments as expenses against their bottom lines.
But how could responsible Republican, Democratic and independent members of the Senate ever approve an SEC nominee who, when he was a securities lawyer in the 1980s, worked for First Pension Corp., a company that was accused by the government of bilking investors, that was sued by the SEC for fraudulent activity and that saw its founder plead guilty to charges of felony wrongdoing? How could any member of the Senate who was not completely in the pocket of the securities industry vote for a nominee who the watchdog group Public Citizen described as “a defender of corporate interests whose legislative record indicates he would not protect investors if he were confirmed”?
The answer to that question is: without so much a blink of the eye.
The Cox nomination sailed through the Senate Banking Committee in late July after the nominee promised to be “vigilant.”
Then, as the Senate raced to finish business before the August recess, Cox was approved by a voice vote to take charge of what is supposed to one of the nation’s premier regulatory agencies.
No one, not one Democrat, not one maverick Republican, not one honest conservative who cared enough about capitalism to stand up for small investors, bothered to ask for the recorded vote that might have at least told the fox he was being watched as he entered the henhouse.