Cox Testimony Before Congress

The Chairman of the Securities and Exchange Commission, Christopher Cox, appeared before the Senate Banking Committee for the first time yesterday.  He outlined SEC priorities and addressed the concerns of the Senators.  There were no surprises but no disappointments either. The SEC will rethink its proposed rules on the structure of mutual fund boards of directors (which were ill advised).  SEC new initiatives will include a review of the registration of credit-rating agencies (which is welcome).  There is not enough competition in the credit-rating agency market, only five are approved, and the participants are too cozy with clients and with each other.  Members of Congress asked Cox to speak to the health of the nation's capital markets (our markets have lost market share in the new listings markets) and to the ramifications of upcoming securities exchange mergers (including oversees mergers).