Schapiro resignation not linked to lawsuit, SEC says
Mary Schapiro, chair of the US Securities and Exchange Commission (SEC), is stepping down from her role.
Her announcement comes a week after David Weber, formerly assistant inspector-general for investigations at the SEC, filed a $20 million lawsuit against the agency alleging incompetence, collusion, harassment and sloppy security in relation to its handling of the Allen Stanford fraud investigation.
The most recent allegations follow criticism of Schapiro last year for failing to deal with conflict-of-interest issues surrounding the resolution of the Madoff case. That criticism came from inspector-general David Kotz who is now himself the centre of allegations of improper misconduct in relation to the Stanford case. Kotz stepped down earlier this year.
An SEC spokesperson denied Schapiro’s announcement was related to last week’s news. “It has nothing to do with that,” the spokesperson said. “She has been here longer than most [chairs].”
Schapiro (pictured) has led the SEC since January 2009. She joined from the Financial Industry Regulatory Authority (Finra) where she held the position of chief executive. She was chief executive and chair of the National Association of Securities Dealers (NASD) when it merged with the New York Stock Exchange’s Member Regulation to form Finra in 2007. Prior to joining NASD in 1996, she was chair at the Commodity Futures Trading Commission, which she joined in 1994. She served at the SEC as a commissioner between 1988 and 1994.
Schapiro will step down on December 14 and will be replaced by commissioner Elisse Walter.
This article was first published on Risk