Mary Schapiro

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Mary Schapiro
SchapiroMary.jpg
29th Chair of the Securities and Exchange Commission
In office
January 27, 2009 – December 14, 2012
President Barack Obama
Preceded by Christopher Cox
Succeeded by Elisse Walter
In office
May 7, 1993 – July 27, 1993
Acting
President Bill Clinton
Preceded by Richard Breeden
Succeeded by Arthur Levitt
Commissioner of the Securities and Exchange Commission[1]
In office
December 1988 – October 1994
Chair of the Commodity Futures Trading Commission
In office
October 13, 1994 – January 26, 1996
President Bill Clinton
Preceded by Barbara Holum (Acting)
Succeeded by John Tull (Acting)
Personal details
Born (1955-06-19) June 19, 1955 (age 61)
New York City, New York, U.S.
Political party Independent[2]
Alma mater Franklin and Marshall College
George Washington University

Mary L. Schapiro (born June 19, 1955) served as the 29th Chair of the U.S. Securities and Exchange Commission (SEC). She was appointed by President Barack Obama, unanimously confirmed by the U.S. Senate, and assumed the Chairship on January 27, 2009. She is the first woman to be the permanent Chair of the SEC.[3] In 2009, Forbes ranked her the 56th most powerful woman in the world.[4]

Schapiro served in various roles as a financial services regulator in the administrations of Ronald Reagan, George H. W. Bush, and Bill Clinton. From 2006 to early 2009, she was the Chairman and CEO of the Financial Industry Regulatory Authority (FINRA), the securities industry's self-regulatory organization for broker-dealers and exchanges in the United States.[1]

Early life and education[edit]

Schapiro was born in New York City[5] to Robert and Mary Susan "Sue" Hall Schapiro.[6] One of four children, Schapiro grew up in Babylon, N.Y., where her father owned the Tempus Fugit antique store.[7] and her mother was a reference librarian.[8] Schapiro graduated from Babylon High School, and matriculated at Franklin & Marshall College, where she was graduated in 1977. In 1980 she earned a Juris Doctor (J.D.) degree with honors from George Washington University Law School.[1]

Career prior to the SEC[edit]

Schapiro was appointed in 1988 by President Ronald Reagan to fill one of two Democratic seats on the SEC. President George H. W. Bush reappointed her to this position in 1989. President Bill Clinton appointed Schapiro acting Chair of the SEC, and then appointed her Chair of the Commodity Futures Trading Commission in 1994.

In 1996 Schapiro joined the National Association of Securities Dealers (NASD) (now the Financial Industry Regulatory Authority) as the president of NASD Regulation. In 2002 she became the Vice Chair of the NASD.

In 2005 Schapiro oversaw a wide-reaching probe into gift-giving and entertaining on Wall Street, uncovering several instances of lavish and excessive activities, which led to many charges.[9]

In 2006 she became NASD's Chair and CEO. In that position, she oversaw NASD's consolidation with NYSE Member Regulation to form the Financial Industry Regulatory Authority.[10]

In January 2008, President George W. Bush appointed Schapiro to the 19-member council of the President's Advisory Council on Financial Literacy. In 2008, Schapiro was named to Investment Advisor magazine's IA 25, the list of the 25 most influential people in and around the investment advisory business.[11]

In 2008, her last year at FINRA, Schapiro earned a regular compensation package of $3.3 million; on departure from FINRA, she received additional lump sum retirement benefit payments to a total of just under $9 million.[12]She received $8.99 million as a "final distribution," including $7.6 million in vested retirement benefits, according to a Finra report. She makes $163,500 at the SEC.[13]

SEC Chair[edit]

In January 2009 the U.S. Senate unanimously confirmed Schapiro's appointment by President Barack Obama to be the SEC's first female permanent Chair.[1]

Schapiro partially blamed the financial crises of 2008 on deregulation, telling senators that the regulatory system had "not kept pace with the markets and the needs of investors". As the SEC's head, she said, she would press for tighter regulation of financial instruments, including derivatives.[14]

During Schapiro's tenure at the SEC, the agency improved its enforcement program, creating new structures, procedures, and programs to better address the modern financial markets, including: bringing 735 enforcement actions in FY 2011 and a near record of 734 actions in FY 2012; obtaining more than $11 billion in ordered disgorgements and penalties since FY 2009; prosecuting the largest insider trading scheme ever discovered, winning a record $92.8 million fine in the civil case against the CEO of the Galleon Hedge Fund; and bringing financial-crisis related actions against Fannie Mae and Freddie Mac, among others.[15][16] Also during Schapiro’s tenure, the SEC brought a record number of enforcement actions and returned more than $6 billion to harmed investors.[2] Schapiro also led the agency through one of its most active rulemaking periods, and enacted many other investor protection measures, including adopting more than three quarters of the rules required by the Dodd-Frank Act.[17]

An early setback for Schapiro as SEC Chair occurred in September 2009 when U.S. District Judge Jed Rakoff rejected the SEC's proposed $33 million settlement with Bank of America. BoA had been charged with failure to disclose bonuses paid to Merrill Lynch executive before the two companies merged. Under the settlement's terms BoA was allowed to deny any wrongdoing, which they did when pressed by Rakoff on the matter of guilt.[18] Rakoff said the settlement did not "comport with the most elementary notions of justice and morality".[19] Seven months later, Rakoff approved a $150 million settlement of the BoA case; BoA did not have to change its declaration of innocence.[20]

Upon Schapiro's departure from the SEC in December 2012, President Obama commended Schapiro's contributions as Chair in an official White House statement.[21]

Subsequent career[edit]

In April 2013, Schapiro joined Promontory Financial Group where she is Advisory Board Vice Chair.[22][23] In 2014 she joined the board of directors of General Electric,[24] and in 2015, she joined the board of directors of the London Stock Exchange Group.[25]

Personal life[edit]

Schapiro is married to Charles "Chas" Caldwell, a former official with the U.S. Small Business Administration.[26] They have two daughters.[27] She serves as treasurer of the Washington Humane Society.[28] Though Schapiro is often said to be Jewish, presumably because of her surname, this assertion is based on a newspaper article with no named sources. Schapiro's mother was a member of the Presbyterian church.[29]

References[edit]

  1. ^ a b c d "SEC Biography:Chairman Mary L. Schapiro". SEC.gov. Retrieved 23 June 2013. 
  2. ^ a b Aruna Viswanatha (November 26, 2012). "Schapiro stepping down at SEC, Walter to step in". Reuters. 
  3. ^ "Obama taps veteran regulator to head under-fire SEC", Agence France Presse, December 18, 2008, accessed February 6, 2009.
  4. ^ "The 100 Most Powerful Women". Forbes. August 19, 2009. 
  5. ^ "Meet Washington's Newest Watchdog". Bloomberg Businessweek. October 23, 1994. 
  6. ^ Nominations hearing record, U.S. Senate Committee on Agriculture, Nutrition & Forestry, June 20, 1994; https://archive.org/stream/nominationsheari00unit/nominationsheari00unit_djvu.txt
  7. ^ Babylon Beacon, Sept. 21, 2006 (http://www.babylonbeacon.com/news/2006-09-21/columnists/020.html?print=1)
  8. ^ Wilton Daily Voice, obituary, August 25, 2011
  9. ^ Lavan, Rosie (December 18, 2008). "SECs New Chairman: Who is Mary Schapiro". The Times. London. 
  10. ^ Biography of Schapiro, FINRA
  11. ^ James J. Green (May 1, 2008). "Watch List: Mark Tibergien, the consultant and now executive who taught advisors to think of their practices as businesses, leads the IA 25 for 2008". Investment Advisor. Retrieved 2012-03-07. 
  12. ^ Courtney Comstock (October 11, 2010). "WHOA: FINRA Paid Mary Schapiro $9 Million In 2008". Business Insider. 
  13. ^ Alexis Leondis and Zeke Faux (Jun 27, 2011). "Investors May Lose as Congress Saves Money on Adviser Oversight". Bloomberg.com. Retrieved 14 March 2014. 
  14. ^ Labaton, Stephen (January 16, 2009). "S.E.C. Nominee Offers Plan for Tighter Regulation". The New York Times. 
  15. ^ Jennifer Liberto (November 26, 2012). "SEC chief Mary Schapiro to step down". CNNMoney.com. 
  16. ^ "The SEC — Revitalized, Reformed and Protecting Investors". SEC.gov. Retrieved 25 June 2013. 
  17. ^ Catherine Hollander (November 27, 2012). "Schapiro Departure Could Slow Dodd-Frank Implementation". National Journal. 
  18. ^ Marcy Gordon. "BofA settlement ruling a setback for SEC". Associated Press. Retrieved 2012-03-10. 
  19. ^ Scannell, Kara; Rappaport, Liz; Bravin, Jess (September 15, 2009). "Judge Tosses Out Bonus Deal". The Wall Street Journal. 
  20. ^ Louise Story (February 23, 2010). "Judge Accepts S.E.C.'s Deal With Bank of America". New York Times. Retrieved 2012-03-10. 
  21. ^ "Statement by President Obama on the Departure of SEC Chairman Mary Schapiro". Whitehouse.gov. November 26, 2012. 
  22. ^ Julie May (August 11, 2014). "Promontory to oversee CBA's advice review program". Financial Observer. 
  23. ^ "WWS Calendar Mary Schapiro". Woodrow Wilson School of Public and International Affairs. February 26, 2014. 
  24. ^ http://money.cnn.com/2013/03/11/news/companies/general-electric-mary-schapiro/index.html
  25. ^ http://www.nytimes.com/2015/06/12/business/dealbook/mary-schapiro-to-join-london-stock-exchange-board.html?_r=0
  26. ^ David A. Walker, introduction to a speech on "The Challenge of Regulation" by Schapiro, http://faculty.msb.edu/prog/cmrc/conferences/Schapiro.html
  27. ^ https://www.finra.org/newsroom/speeches/121808-mary-schapiros-acceptance-nomination-sec-chairman
  28. ^ http://support.washhumane.org/site/PageServer?pagename=aboutus_board
  29. ^ http://wilton.dailyvoice.com/news/mary-susan-hall-schapiro-88-of-wilton/436704/

External links[edit]

Political offices
Preceded by
Richard Breeden
Chair of the Securities and Exchange Commission
Acting

1993
Succeeded by
Arthur Levitt
Preceded by
Barbara Holum
Acting
Chair of the Commodity Futures Trading Commission
1994–1996
Succeeded by
John Tull
Acting
Preceded by
Christopher Cox
Chair of the Securities and Exchange Commission
2009–2012
Succeeded by
Elisse Walter