WEST PALM BEACH, FL (www.hedgeco.net) – President Bush has selected Republican Christopher Cox to be the next Chairman of the Securities and Exchange Commission, following last week�s resignation ofWilliam Donaldson. Cox was widely expected to receive the nomination. Chairman William H. Donaldson announced his retirement from the agency effective June 30, 2005. Donaldson have been criticized byRepublican business leaders for his heavy handed approach in regulating the financial markets. Donaldson was hired to restore confidence in the U.S. financial markets following the big corporatescandals that rocked the industry with cases such as WorldCom, Enron and Tyco being thrust into the public limelight.
Donaldson�s two republican members of the Commission voted against his Hedge Fund initiatives. The final fate of the U.S. Hedge Fund laws remains in limbo as Federal Courts consider the legitimacy of such laws. Many U.S. Business Groups and Associations believe Mr. Donaldson�s regulatory laws are very cumbersome; many in the industry hope that Donaldson�s introduced laws would be eliminated or loosened upon his departure.
Mr. Cox is a 16-year veteran of the U.S. House; he has been very instrumental in rewriting the U.S. Securities law, making it harder for investors to file lawsuits in the financial markets arena. His nomination is still to be approved by the U.S. Senate before Mr. Cox takes office. The Democratic leadership in the house meanwhile praised Mr. Donaldson�s efforts and said that Mr. Cox if confirmed will have big shoes to fill.
President Bush noted that, ‘Bill Donaldson has set high standards for American business and the SEC.� Bush also said, ”Chris Cox is the right man to carry on this important work.� Adding, ”I’ve given Chris a clear mission: to continue to strengthen the public trust in our markets so the American economy can continue to grow and create jobs.� The Securities and Exchange Commission filed more than 1,700 enforcement procedures under Donaldson’s tenure.
John Engler, president of the National Association of Manufacturers said, ”Chris Cox is a great choice to lead the SEC.” He added, �We look forward to working with him as the SEC crafts guidance for companies to comply with Sarbanes-Oxley, especially Section 404.” Cox is expected to be confirmed by the U.S. Senate when his consideration comes up.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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