Matzzie: "Cox Macheted the Law Enforcement Functions of the SEC"
The Securities & Exchange Commission is responsible for enforcing securities and financial regulatory law in this country. In the lead up to and during the beginning of the global financial crisis three men were asleep at the wheel: former SEC head Christopher Cox, former Fed Chair Alan Greenspan and current Fed Chair Ben Bernanke.
Accountable America Chairman Tom Matzzie said that these three men must answer for their actions:
It’s about time. Chairman Angelides is right to call Cox and Greenspan. If they decline to appear they should be subpoenaed.
Cox macheted the law enforcement functions of the SEC—one of the reasons Bernie Madoff was never caught.
Cox in particular allowed the banks to over-leverage themselves by neglecting his role as SEC chair to protect the public. An SEC bank supervision program, started in 2004 by his predecessor, was abominably managed by Cox and has been called one of the single greatest factors contributing to the financial crisis. Cox’s 17-year record and demeanor as chairman was always to protect the Wall Street banks rather than investors, the public and the economy at large.
It is easy to forget that Alan Greenspan ran the Fed for most of the period when the housing bubble was being inflated. He sat by as the bubble grew with few critical words until after he left his post.