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...with the spotlight on, Schapiro is in the prickly position of having to defend her enforcement record. At her hearing, the soft-spoken Schapiro bristled at media reports that she "infrequently" pursued tough action against big Wall Street names, saying the stories painted an "unfair picture." While chief at FINRA, she countered, her team handled 15,000 enforcement cases, including big names like Morgan Stanley, Citigroup, Merrill-Lynch and Lehman. "I have never been afraid to go after people I thought who have violated the public trust...

Author: /time Magazine | Title: Can Mary Schapiro Revitalize the SEC? | 1/27/2009 | See Source »

...Former SEC enforcer Carton also sees this 2006 "Pre-Authorization" policy as being deadly for enforcement morale. "It put a complete chill on enforcement," Carton says. His "Day One" advice for Schapiro: kill this program...

Author: /time Magazine | Title: Can Mary Schapiro Revitalize the SEC? | 1/27/2009 | See Source »

...Schapiro apparently agrees. In her hearing, she said the SEC pre-approval program was among the first things she would examine...

Author: /time Magazine | Title: Can Mary Schapiro Revitalize the SEC? | 1/27/2009 | See Source »

...having the tools to stop new Madoffs, Schapiro at her hearing said, "One has to conclude that the [SEC's] tools were not up to the task." She added that the agency may "need a significant bolstering." As for better hedge fund transparency and disclosure, she said, "corporate disclosure has to be complete and accessible; with hedge funds I would like to see disclosure...

Author: /time Magazine | Title: Can Mary Schapiro Revitalize the SEC? | 1/27/2009 | See Source »

...Schapiro's financial self-regulation background may not be enough. According to Dr. Fred Dunbar, senior vice president at NERA, an economic consulting firm, "banks are suppose to behave themselves under self-rule." During the Bush Administration this popular belief drifted over to the SEC, Dunbar says. "The feeling was, with the SEC, that with such self-enforcement they wouldn't have to step up their own enforcement. But the financial crisis has led to a re-examination of this theory, firms don't behave as one might think in theory...

Author: /time Magazine | Title: Can Mary Schapiro Revitalize the SEC? | 1/27/2009 | See Source »

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