Obama Picks Veteran Regulator For SEC Post

Nominates Mary Schapiro To Chair Maligned Agency; Obama: New Team Will Crack Down On Greed

(AP)  President-elect Barack Obama on Thursday named three veteran regulators to round out his economic team and vowed to revamp regulatory rules to prevent a repeat of the financial and economic debacles the country is suffering through.

His announcement came as he lays the groundwork for a giant economic stimulus package, possibly $850 billion over two years, aimed at reviving the flagging economy. It would rival drastic government actions taken to fight the Great Depression in the 1930s.

Mr. Obama blamed regulators for the financial debacle, saying they "dropped the ball." Regulators, he said, "have been asleep at the switch."

American people, watching their investments tank, are frustrated that "there's not a lot of adult supervision out there," Mr. Obama added.

At a Chicago news conference, Mr. Obama named Mary Schapiro to chair the Securities and Exchange Commission, Gary Gensler to head the Commodity Futures Trading Commission and Daniel Tarullo to fill an empty Federal Reserve seat. All three will need to be confirmed by the Senate next year.

In announcing the appointments, Mr. Obama mentioned disgraced Wall Street money manager Bernard Madoff, saying that the latest investment scandal "has reminded us yet again of how badly reform is needed." The president-elect said his new team will help put in place new rules that will help "crack down on the culture of greed and scheming.

The SEC stands at what could be one of the most difficult times in its history, buffeted by criticism for failing to detect signs that major Wall Street banks were in trouble before the financial crisis erupted and for possibly lax oversight and enforcement in other areas.

The scandal involving Madoff stunned Wall Street and injured investors around the globe amid revelations that staff at the SEC repeatedly failed over the course of a decade to fully investigate credible allegations against him. SEC Chairman Christopher Cox on Tuesday ordered the agency's inspector general to investigate what went wrong.

The president-elect sidestepped questions about whether he would support a decision by Treasury Secretary Henry Paulson to tap the second $350 billion installment of the $700 billion financial bailout program. Major auto companies are pleading for emergency aid, which could come from that pot.

"I think it's important for the Treasury, the Fed and all of us to do whatever is required to make sure our financial system is stable and secure," Mr. Obama said. But he added: "We cannot afford a collapse of our financial system. Main Street can't afford it."

Mr. Obama introduced his latest selections at a news conference in Chicago. It's his fourth this week as he seeks to finalize much, if not all, of his Cabinet and other key positions before heading to Hawaii for a holiday vacation.

[bobnjersey]

[The scandal involving Madoff stunned Wall Street and injured investors around the globe amid revelations that staff at the SEC repeatedly failed over the course of a decade to fully investigate credible allegations against him. SEC Chairman Christopher Cox on Tuesday ordered the agency''s inspector general to investigate what went wrong. ]

mr. cox ... you should start by explaining exactly what you''re commision has been doing all these years ... cause it appears as though it equates to nothing at all ... other than facilitating corruption and fraud.

... and who''s investigating the inspector general?

[easeup-2009]

The SEC needs a lot of help. Once you get past Florida & Alabama, you have a bunch of mediocrity. Watch for Ole Miss next year--they are turning it around.