Wednesday, January 2, 2013
I have not been blogging in the past few weeks, having been on vacation and also grading exams. I'm trying now to catch up. The first story (not relating to the fiscal cliff) that caught my attention were the reports that SEC Enforcement Head Robert Khuzami will be shortly resigning. The SEC has not issued a statement, but the Huffington Post, and others, report that, according to Bloomberg, Khuzami submitted his letter of resignation to SEC Chairman Elisse Walter. Simon Johnson, in his New York Times column, takes the report seriously and discusses replacements; he recommends Neil Barofsky, the former Special Inspector General for TARP.
It will be interesting to see how SEC historians rank Khuzami's tenure. One of Mary Schapiro's first appointments after becoming Chairman, Khuzami, a former federal prosecutor, was brought in to reinvigorate the SEC's enforcment program. Schapiro herself gave Khuzami high marks for his accomplishments in this regard, and Khuzami frequently talked like a tough prosecutor. Yet many have criticized his failure to go after the officers and directors of the financial firms that were implicated in the financial crisis.
It will also be interesting to see what job Khuzami takes next. Prior to joining the SEC, he was the General Counsel at Deutsche Bank. Will the door continue to revolve?