Who Will Be the Next SEC Chairmangreenspun.com : LUSENET : Bill Parish : One Thread
As an investment advisor, I believe that this is the most important event that will occur in 2001. If a tough and committed Chairman picks up and implements Arthur Levitt's reform agenda then integrity will be restored.
The current "active" Chairperson, Laura Unger, has been mostly silent on Arthur Levitt's agenda, in particular the need to reflect stock option wages taken as a tax deduction on the earnings statement as an expense.
It is ironic that President Bush has put this most important decision on the back burner. His father would have clearly made this a top priority, perhaps making it his first nomination. We so easily forget that George Bush Sr.'s first speech to the nation was on the Savings and Loan Crisis and by taking on the challenge he ultimately restored credibility and saved the banking system.
what do you think?
-- Bill Parish (email@example.com), April 20, 2001
I believe that SEC and federal have been playing along in this dangerous game. The whole economy has been riding on a hot-air balloon. If we let the air our all at once, "Avalanche" is nothing compared to this flush. The whole equity market will go down the tube.
SEC has been allowing corporates America to inflate their real earnings (most are loss) to attract investors. Noone will pay $5 for a share of CSCO garbage-tender, or AMZN debt-ladden IOU note.
This is legal under SEC to pay to employees and make money from employees' compensations, and they say it's hard to be a CEO.
We are in too deep to back out. The hot air will be imploded by itself. Naive investors will, one day, learn that their dream retirement would be a nightmare one, it will be too late then.
-- A Silent American (NonCertifiable@hotmail.com), April 21, 2001.
That is a rather fatalistic perspective. Although I appreciate your thoughts, my belief is that it is best to work toward positive change one step at a time. A stong SEC can do great things for the market and economy in general. Again, thoughts specific to the SEC Chair would be appreciated.
-- Bill Parish (firstname.lastname@example.org), April 21, 2001.
I fully expect Robert Rubin to fit the bill for Fed figurehead.
-- Tom Nadeau (email@example.com), April 23, 2001.
I'm not a US citizen so bear with me, - who is Arthur Levitt?
-- Bjorn Thrane (firstname.lastname@example.org), April 24, 2001.
Arthur Levitt is the former chair of the SEC, just retired in January. Rubin can't do it, no independence. Perhaps Bill Bradley but it is a tough job and could impair his political future. John Bogel of Vanguard might be a good choice but he would need a strong staff. My vote would be for Bogel, former ceo of the Vanguard group.
-- Bill Parish (email@example.com), April 24, 2001.