Mary Schapiro
Encyclopedia
Mary L. Schapiro is the 29th chairperson of the U.S. Securities and Exchange Commission (SEC).
She is the immediate past chairperson and CEO of the Financial Industry Regulatory Authority
(FINRA), the securities industry self-regulatory organization for broker-dealers and exchanges in the United States, and served in various roles as a financial services regulator in the administrations of Bill Clinton
, George H. W. Bush
, and Ronald Reagan
. She is the first woman to chair the SEC. In 2009, Forbes
ranked her the 56th most powerful woman in the world.
to a Jewish family . She graduated from Franklin & Marshall College
in 1977. In 1980 she earned a Juris Doctor
(J.D.) degree from George Washington University Law School.. She had an honorary Ph.D. conferred from LeBow College of Business .
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 as acting chairperson of the SEC, and then appointed her chairperson of the Commodity Futures Trading Commission
in 1994.
In 2009 She promised that as chair of the SEC to be more vigilant. In 1993 Schapiro said regulating derivatives in order to not stifle the "financial innovation" that would result from "a more flexible regulatory paradigm." Prior to 2009, Schapiro as a regulator viewed much regulation of financial markets as too burdensome and proposed to work closely with the financial industry to weaken regulations. At her confirmation hearings for SEC chair in 2009, Schapiro reversed herself and advocated for tighter regulation of financial instruments including derivatives, while conceding that the current financial crises was in part due, Schapiro said, to a regulatory system that "has not kept pace with the markets and the needs of investors".
In 1996 Schapiro joined the National Association of Securities Dealers (NASD) (now the Financial Industry Regulatory Authority
) as the president of NASD Regulation. She became the vice chairperson of the NASD in 2002, and in 2006 she became NASD's chairperson and CEO. As the CEO of NASD she oversaw its consolidation with NYSE Member Regulation to form the Financial Industry Regulatory Authority. In 2005 she oversaw a wide-reaching probe into gift-giving and entertaining on Wall Street, uncovering several instances of lavish and excessive activities, that led to many charges.
She was on the board of directors of Duke Energy
and Kraft Foods
. 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.
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 that brought her total package in 2008 to $8,985,334 (about the same as Goldman Sachs
CEO Lloyd Blankfein
made in that year).
regarding the disclosure of bonuses paid to Merrill Lynch
executives just before their take over by Bank of America. U.S. District Judge Jed Rakoff threw out the proposed $33 million dollar settlement saying it "does not comport with the most elementary notions of justice and morality".
On June 17, 2009, Bernard Madoff
, in an interview by the SEC inspector general David Kotz
, said that Mary Schapiro was a "dear friend," although she "probably thinks, 'I wish I never knew this guy.' ". This was denied by SEC Inspector General David Kotz, who said "there was no evidence that Mr. Madoff had a close friendship with Ms. Schapiro." Mary Schapiro, while she was at FINRA, appointed Mark Madoff, Bernie Madoff's son, to the National Adjudicators Council (the regulatory body that reviews disciplinary action by FINRA). Shana Madoff, Bernie’s niece, was the compliance officer at Madoff's firm and also a member of the compliance committee of FINRA.
As Chair, Schapiro has instituted rulemakings aimed at reforming the structure of the markets for securities trading, including particularly dark pool alternative trading systems, internalization, dark order types on exchanges, and ECNs.
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She is the immediate past chairperson and CEO of the Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
In the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
(FINRA), the securities industry self-regulatory organization for broker-dealers and exchanges in the United States, and served in various roles as a financial services regulator in the administrations of Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
, George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
, and Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
. She is the first woman to chair the SEC. In 2009, Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
ranked her the 56th most powerful woman in the world.
Early life and education
Schapiro was born in New York CityNew York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
to a Jewish family . She graduated from Franklin & Marshall College
Franklin & Marshall College
Franklin & Marshall College is a four-year private co-educational residential national liberal arts college in the Northwest Corridor neighborhood of Lancaster, Pennsylvania, United States....
in 1977. In 1980 she earned a Juris Doctor
Juris Doctor
Juris Doctor is a professional doctorate and first professional graduate degree in law.The degree was first awarded by Harvard University in the United States in the late 19th century and was created as a modern version of the old European doctor of law degree Juris Doctor (see etymology and...
(J.D.) degree from George Washington University Law School.. She had an honorary Ph.D. conferred from LeBow College of Business .
Pre-SEC career
Schapiro was appointed in 1988 by PresidentPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
to fill one of two Democratic
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
seats on the SEC. President George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
reappointed her to this position in 1989. President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
appointed Schapiro as acting chairperson of the SEC, and then appointed her chairperson of the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
in 1994.
In 2009 She promised that as chair of the SEC to be more vigilant. In 1993 Schapiro said regulating derivatives in order to not stifle the "financial innovation" that would result from "a more flexible regulatory paradigm." Prior to 2009, Schapiro as a regulator viewed much regulation of financial markets as too burdensome and proposed to work closely with the financial industry to weaken regulations. At her confirmation hearings for SEC chair in 2009, Schapiro reversed herself and advocated for tighter regulation of financial instruments including derivatives, while conceding that the current financial crises was in part due, Schapiro said, to a regulatory system that "has not kept pace with the markets and the needs of investors".
In 1996 Schapiro joined the National Association of Securities Dealers (NASD) (now the Financial Industry Regulatory Authority
Financial Industry Regulatory Authority
In the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
) as the president of NASD Regulation. She became the vice chairperson of the NASD in 2002, and in 2006 she became NASD's chairperson and CEO. As the CEO of NASD she oversaw its consolidation with NYSE Member Regulation to form the Financial Industry Regulatory Authority. In 2005 she oversaw a wide-reaching probe into gift-giving and entertaining on Wall Street, uncovering several instances of lavish and excessive activities, that led to many charges.
She was on the board of directors of Duke Energy
Duke Energy
Duke Energy , headquartered in Charlotte, North Carolina, is an energy company with assets in the United States, Canada and Latin America.-Overview:...
and Kraft Foods
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...
. In January 2008, President George W. Bush
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
appointed Schapiro to the 19-member council of the President's Advisory Council on Financial Literacy. In 2008, Schapiro was named to Investment Advisor
Investment Advisor
The term Investment Advisor is an individual or firm who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities...
magazine's IA 25, the list of the 25 most influential people in and around the investment advisory business.
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 that brought her total package in 2008 to $8,985,334 (about the same as Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
CEO Lloyd Blankfein
Lloyd Blankfein
Lloyd Craig Blankfein is an American business executive. He is currently the CEO and Chairman of Goldman Sachs. He has been in this position since the May 31, 2006 nomination of former CEO Henry Paulson as Secretary of the Treasury under George W...
made in that year).
Career as SEC chair
In 2009, under the direction of Schapiro, the SEC attempted to settle a case with Bank of AmericaBank of America
Bank of America Corporation, an American multinational banking and financial services corporation, is the second largest bank holding company in the United States by assets, and the fourth largest bank in the U.S. by market capitalization. The bank is headquartered in Charlotte, North Carolina...
regarding the disclosure of bonuses paid to Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
executives just before their take over by Bank of America. U.S. District Judge Jed Rakoff threw out the proposed $33 million dollar settlement saying it "does not comport with the most elementary notions of justice and morality".
On June 17, 2009, Bernard Madoff
Bernard Madoff
Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...
, in an interview by the SEC inspector general David Kotz
H. David Kotz
H. David Kotz is the Inspector General of the U.S. Securities and Exchange Commission since his appointment on December 5, 2007...
, said that Mary Schapiro was a "dear friend," although she "probably thinks, 'I wish I never knew this guy.' ". This was denied by SEC Inspector General David Kotz, who said "there was no evidence that Mr. Madoff had a close friendship with Ms. Schapiro." Mary Schapiro, while she was at FINRA, appointed Mark Madoff, Bernie Madoff's son, to the National Adjudicators Council (the regulatory body that reviews disciplinary action by FINRA). Shana Madoff, Bernie’s niece, was the compliance officer at Madoff's firm and also a member of the compliance committee of FINRA.
As Chair, Schapiro has instituted rulemakings aimed at reforming the structure of the markets for securities trading, including particularly dark pool alternative trading systems, internalization, dark order types on exchanges, and ECNs.
External links
- Mary L. Shapiro profile from the Financial Industry Regulatory AuthorityFinancial Industry Regulatory AuthorityIn the United States, the Financial Industry Regulatory Authority, Inc., or FINRA, is a private corporation that acts as a self-regulatory organization . FINRA is the successor to the National Association of Securities Dealers, Inc. ...
- Mary L. Shapiro profile from ForbesForbesForbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
- Biographical information on Mary L. Schapiro AP, December 18, 2008
- SEC Chairperson Mary Schaprio makes first public comments since becoming chairperson of the SEC in address to Practising Law InstitutePractising Law InstitutePractising Law Institute is a non-profit continuing legal education organization chartered by the Regents of the University of the State of New York. Founded in 1933, the company organizes and provides CLE programs around the world...
's "SEC Speaks in 2009" Program. February 6, 2009 http://www.sec.gov/news/speech/2009/spch020609mls.htm
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