Obama SEC Choice Gave Madoff Son a Job

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Mary Schapiro Wall St. Rag Covergirl

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December 18, 2008, President-Elect Barack Obama announces:
"I said throughout the campaign, what will be just as important to our long-term economic stability is a 21st-century regulatory framework to ensure that a crisis like this can never happen again. Today I'm pleased to announce two individuals who will be leading that effort: Mary Schapiro, as the chairman -- chairwoman of the Securities and Exchange Commission."

In 2001, Mary Schapiro employed Mark Madoff, the eldest son of Bernard L Madoff, in a securities regulation sensitive position, appointing him to serve as an 'at-large industry member' on the board of the National Adjudicatory Council at the Financial Industry Regulatory Authority (Finra), a regulatory body that oversees American securities firms, specifically to review disciplinary decisions made by Finra.

In a press release announcing new appointments to the adjudicatory council, Schapiro describes the NAC as playing:
“a critical role in deciding disciplinary matters that set a standard for fairness within the securities industry,” adding “we rely on the NAC’s experience and perspective to help formulate effective membership policy.”

The high traffic indie financial blog seekingalpha warns of the real dangers of Obama's apparent lapse or total personal lack of financial system overview or acumen, as well as the damaging and dangerous counsel he gets from his own personally appointed political advisors. seekingalpha blogger Gary Weiss writes:
"Barack Obama calls his transition website change.gov, and his campaign slogan used "change" about a million times, so I am utterly flummoxed -- and disgusted -- by his selection of Mary Schapiro as SEC chairman, to replace the awful Chris Cox."

thepeoplesvoice.org warns of the disappointment, danger and certain damage to the public good Mary Schapiro will catalyze with the full support of the president in 2009 and beyond, should market-making manage to limp beyond this year:
"Mary Schapiro will head the SEC for Obama. Under her stewardship, sharks on the Street will flourish. Business as usual will continue. She spent years advocating for Wall Street to be self-regulating, currently heads the Financial Industry Regulatory Authority (FINRA), was president and is now chairman and CEO of the National Association of Securities Dealers (NASD), is a former SEC commissioner, ran the Commodity Futures Trading Commission, and is expert at quashing investigations about fraud. Whether she'll roust any in her new post is problematic and doubtful as she likely was appointed to allow it. She's a consummate insider, considered safe, and no wonder Wall Street and the dominant media applauded her selection. That alone is the tip-off.

On her watch (beyond lip service), expect less enforcement, not more, and why so is simple. Eventually she'll return to the private sector to be well compensated for services rendered. Besides, there's no doubt where her interests lie, which ones she'll represent, and that's why she was chosen in the first place. Wall Street is in good hands with Mary Schapiro."

As far as I gather, the US Senate has not yet approved Mary Schapiro's appointment as the 'new' SEC chief. There is still a window for citizen activists' persistent virtual lobbying to ensure that Mary Schapiro remains no more that the 'cover girl' of sleazy Wall Street stock-pushing rags like her appearance on the cover of Equities magazine.