The SEC is full of people who used to work for a firm representing the giant players in the money game: Morgan Stanley, Goldman Sachs, Chase, etc. The SEC in theory should be watchdogging these firms, but we all know how well that went in 2008, right? (Hint: the economy collapsed.)
Maybe our president shouldn't be appointing the foxes to watch over the foxes who are raiding the henhouse?
Obama's New SEC Chief: In Through the Revolving Door | Rolling Stone Politics | Taibblog | Matt Taibbi on Politics and the Economy
A little while ago I did a brief post about how the SEC was being dominated by attorneys from the firm Wilmer Cutler Pickering Hale and Dorr. The story then was that an attorney named Anne Small was going to be joining the SEC to replace a Marc Cahn as Deputy General Counsel. Cahn in turn had replaced an Andrew Vollmer. All three people were Wilmer Hale lawyers.
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Of course it's not like the traffic doesn't go in both directions. Last year the SEC's head of trading and markets, Daniel Gallagher, left to become a Wilmer partner. And the SEC's former Director of Enforcement William McLucas is now the head of Wilmer's securities department. The firm hired the head of the SEC's Los Angeles office, Randall Lee, in 2007. And so on and so on.
Well, guess what, sports fans? Barack Obama has apparently decided to bring Gallagher back to serve as an SEC Comissioner. From a Washington Post story:
He returned in 2010 to WilmerHale, where he has advised financial companies, William R. McLucas, chairman of the firm’s securities practice, said in a recent interview.
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