I thought it would be interesting to look at some of the memorable statements made in the past by SEC senior executives and commissioners. Some of the statements are colorful, others quite insightful and memorable, a few comical, even ridiculous. A few of them turned out to be unfortunate in their timing. Try to match each statement with the maker of the statement, not its drafter. The answers are provided below.
- “We are committed to vigorous enforcement as a means of protecting our seniors.”
- “The opioid epidemic is so pervasive that it touches many investors, including our seniors”
- “The retail investor must be a constant focus of the SEC – if we fail to serve and safeguard the retail investor, we have not fulfilled our mission.”
- “In many ways, the most visible face of the SEC is what we do to enforce the law.”
- “The SEC is not an enforcement agency …”
- “When I believe that we ought not to have spent our Enforcement Division’s time and effort on a matter, I am likely to vote against it.”
- “Well, we are against fraud, aren’t we?”
- “As the head of the S.E.C., you’ve got to get back into reffing the game properly and end the demonization of Wall Street.”
- “As our enforcement staff has heard me say exactly 2,735 times, I always start every case at “No” and must be persuaded to reach a “Yes.”
- “We ought to hold individuals accountable, not shareholders.”
- “It would be unusual for us to impose a fine against a publicly traded company because ultimately, it comes out of the pockets of shareholders who haven’t done anything wrong,”
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“The bottom line for me is that corporate penalties will be considered in all appropriate cases … Strong penalties are just a starting point.”
- “The commission in recent years has handcuffed the inspection and enforcement division. The environment was not conducive to proactive enforcement activity.
- “We have got brokers’ advocates; we have got Exchange advocates; we have got investment banker advocates; and we are the investor’s advocate.”
- “I blame no one. All I can [say] is that these problems did not arise overnight, and they certainly didn’t arise on my watch.”
- In the action that the Commission brought against James O’Hagen, the Minneapolis lawyer whose case gave rise to the Supreme Court’s approval of the misappropriation theory, this person said that he intended to leave O’Hagen “naked, homeless, and without wheels.”
- “Government would keep the shotgun, so to speak, behind the door, loaded, well-oiled, cleaned, ready for use but with the hope it would never have to be used.
1) Chairman Cox, of course. His sentiment is similar to that expressed expressed both by current Chairman Clayton and the current executive officers of Enforcement. 2) Chairman Clayton. The statement is literally true, but the opioid crisis has virtually nothing at all to do with the SEC or its mission. 3) Surprise–this was Chairman White, not the current Chairman, who adopted this position and states it regularly. 4) Chairman White. True when she said it and still true today. 5) Commissioner Peirce. Given her aversion to enforcement generally, it is not surprising. 6) Commissioner Peirce. Troubling statement. I interpret it to mean that she is more than willing to vote against a proposed enforcement action without having any legitimate justification for the vote. 7) This was Commissioner Sumner Pike’s comment when approving Rule 10b-5, the antifraud rule. Simple, yet profound. 8) This was a bit of a trick. Anthony, “the Mooch,” Scaramucci made it in an interview about the SEC. It likely reflects the unstated beliefs of several current and past Commissioners. 9) Former Commissioner Piwowar. Perhaps his statement was part of of an audition he was making before he left the Commission. It is likely that it also reflects his biases. 10) Piwowar again. 11) This was a statement made by Wayne Carlin, former director of the SEC’s New York office, in connection with a 2002 enforcement case against Trump Hotels & Casino Resorts, Inc. The SEC did not require Trump Hotels to pay a penalty in the settlement. 12) Chairman White again. 13) Commissioner Aguilar. He was reflecting on the Cox era. 14) Chairman Willam Douglas. Brilliant statement, which still resonates today. 15) Chairman Harvey Pitt. A very talented lawyer who made some unforced errors and had some bad luck during his tenure. 16) Former Chairman Richard Breeden. He was a very effective Chairman, one of the few relatively recent Chairs,who left the agency with his reputation enhanced. 17). Chairman William O. Douglas. Doesn’t get much better than this.
The SEC in Action 