LITTLE ROCK — President Barack Obama announced Thursday his nomination of Mary Jo White, a former federal prosecutor turned-white-collar defense lawyer, to be the next chairman of the Securities and Exchange Commission.
In a short ceremony at the White House, Obama also said he was renominating Richard Cordray as director of the Consumer Financial Protection Bureau, a post Cordray has held under a temporary recess appointment without Senate approval for the past year. The president portrayed both selections as a way of preventing a financial crash like the one he inherited four years ago.
“It’s not enough to change the law,” Obama said. “We also need cops on the beat to enforce the law.”
Obama noted that White was a childhood fan of the Hardy Boys fiction series, just as he was. He added that as the U.S. attorney in New York in the 1990s she “built a career the Hardy Boys could only dream of.”
He noted that she prosecuted money launderers, mobsters and terrorists. “I’d say that’s a pretty good run,” he said. “You don’t want to mess with Mary Jo. As one former SEC chairman said, Mary Jo does not intimidate easily.”
Obama likewise pressed the Senate to finally confirm Cordray to the leadership of the consumer agency created by the Wall Street regulation law passed in 2010.The president installed Cordray as director last January without Senate approval using his recess-appointment power, but Cordray’s term will expire at the end of the year unless he wins approval from the Senate.
“Financial institutions have plenty of lobbyists looking out for their interests,” Obama said. “The American people need Richard to keep standing up for them. And there’s absolutely no excuse for the Senate to wait any longer to confirm him.”
White and Cordray spoke only briefly.
White said if confirmed she would work “to protect investors and to ensure the strength, efficiency and the transparency of our capital markets.” Cordray said that during his short tenure he has “been focused on making consumer-finance markets work better for the American people” and approached it “with open minds, open ears and great determination.”
Regulatory chiefs are often market experts or academics. But White spent nearly a decade as the U.S. attorney in New York, the first woman named to this post. Among her prominent cases, she oversaw the prosecution of John Gotti, the Mafia boss, as well as the people responsible for the 1993 World Trade Center bombing. She is now working the other side, defending Wall Street firms and executives as a partner at Debevoise & Plimpton.
As the attorney general of Ohio, Cordray made a name for himself suing Wall Street companies in the wake of the financial crisis. He undertook a series of prominent lawsuits against big names in the finance world, including Bank of America and American International Group.
The White House expects White, 65, and Cordray, 53, to draw on their prosecutorial backgrounds while carrying out a broad regulatory agenda under the Dodd-Frank Act. Congress enacted the law, which mandates a regulatory overhaul, in response to the 2008 financial crisis.
Jay Carney, the White House press secretary, said White has “an incredibly impressive resume” and that her appointment along with the renomination of Cordray sends an important signal.
“The president believes that appointment and the renomination he’s making today demonstrate the commitment he has to carrying out Wall Street reform, making sure we have the rules of the road that are necessary and that are being enforced in a way” to avoid a crisis like that of 2008, Carney said.
Another White House official added that White and Cordray will “serve in top enforcement roles” in part so that “Wall Street is held accountable and middle-class Americans never again are harmed by the abuses of a few.”
White will succeed Elisse Walter, a longtime SEC official, who took over as chairman after Mary Schapiro stepped down as the agency’s leader in December. Cordray joined the consumer bureau in 2011 as its enforcement director.
Republicans had previously vowed to block any candidate for the consumer bureau, leading to the recess appointment. It is unclear whether the White House and Cordray will face another standoff the second time around.
Carney argued that there were no substantive objections to Cordray’s confirmation, only political ones.
“He is absolutely the right person for the job,” Carney said.
White is expected to receive broader support on Capitol Hill. Sen. Charles Schumer, D-N.Y., said that White was a “tough-as-nails prosecutor” who “will not shy away from enforcing the laws to ensure that markets operate fairly.”
But she could face questions about her command of arcane financial minutiae.She was a director of the Nasdaq stock market, but has otherwise built her career on the law-and-order side of the securities industry.
People close to the SEC note, however, that her husband, John White, is a veteran of the agency. From 2006 through 2008, he was head of the SEC’s division of corporation finance, which oversees public companies’ disclosures and reporting.
Some Democrats also might question her path through the revolving door, in and out of government. While seen as a strong enforcer as a U.S. attorney, she went on in private practice to defend some of Wall Street’s biggest names, including Kenneth Lewis, a former head of Bank of America. She also represented JPMorgan Chase and the board of Morgan Stanley.Last year, the NFL hired her to investigate allegations that the New Orleans Saints carried out a bounty system for hurting opponents.
Consumer advocates generally praised her appointment Thursday.
“Mary Jo White was a tough, smart, no-nonsense, broadly experienced and highly accomplished prosecutor,” said Dennis Kelleher, head of Better Markets, the nonprofit advocacy group. “She knew who the bad guys were, went after them and put them in prison when they broke the law.” Information for this article was contributed by Kitty Bennett of The New York Times.
Mary Jo White
AGE: 65
EDUCATION: Bachelor’s degree from College of William and Mary, 1970; law degree from Columbia University, 1974.
FAMILY: Married to attorney John White, one son.
CAREER: Law clerk to U.S. District Court judge in New York; associate at law firm Debevoise & Plimpton, 1976-78; assistant U.S. attorney in the Southern District of New York, 1978-81; litigation partner at Debevoise & Plimpton, 1983-90; first assistant U.S. attorney and acting U.S. attorney in the Eastern District of New York, 1990-93; U.S. attorney in the Southern District, 1993-January 2002; head of litigation practice at Debevoise, 2002 to present.
SOURCE: AP Arkansas Democrat-Gazette
Front Section, Pages 8 on 01/25/2013