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By Marion Edwyn Harrison, Esq.
January 28, 2008
On January 9 and 17 in this column, reprinted below, this writer discussed difficulties and potential difficulties arising from an unprecedented number of vacancies in Federal regulatory agencies. The deficiency appears to be worse yet.
The Securities and Exchange Commission (“SEC”) by law is to have five Commissioners. Three come from the political party of the President of the United States, two from the other party. As of this writing, there are three Republican and one Democratic Commissioners.
Two days hence, barring the unforeseen and unlikely, the lone SEC Member who is a Democrat, Commissioner Annette L. Nazareth, will have resigned, with nobody nominated, much less confirmed, to succeed her. In November, 2007 the Senate Majority Leader forwarded to President George W. Bush - that is, through the usual channel within the White House - the names of two individuals proposed by the Democrats either of whom presumptively would be acceptable for confirmation. One already is a Federal official and, hence, had undergone the usual background check. The other, an attorney in private practice, presumably had not. A background check, of course, even if highly prioritized, can consume considerable time.
There can be no doubt these two background checks, if the White House seriously is considering nominating these two individuals for the two vacancies, should be of utmost priority.
Depending upon which economist’s evaluation one accepts, the United States either is in a recession, in the incipient stages of a recession or in high risk of a recession. SEC regulates, to the substantial extent there is Federal regulation, the securities market. If ever there were a time when SEC should be fully staffed and fully functioning the time at best is now, at worst was many months ago.
The President, candidates for Presidential nomination, Members of Congress, economists, media, all manner of people, are talking about “stimulus” for the burdened economy. Staffing may seem like mere procedure. The reality is that, regardless of what “stimulus,” if any, is enacted into law, motivated by the Federal Reserve Board, provided by banks and/or otherwise attempted - maybe even effectuated - at the least the one Federal agency which regulates the securities market should be fully staffed and fully functional.
Marion Edwyn Harrison is President of, and Counsel to, the Free Congress Foundation
In the Quadrennial Election Year Where Is the Federal Election Commission? - January 17, 2008
Regulatory Personnel Vacancies as a Threat to the Functioning of Government - January 9, 2008
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