FOX BUSINESS NETWORK’S CHARLIE GASPARINO REPORTS THAT SEC CHAIR MARY SCHAPIRO “NEEDED MORE POLITICAL SUPPORT IN CONGRESS TO GO AFTER MARKET STRUCTURE”
FOX Business Network (FBN) Senior Correspondent Charlie Gasparino reports that Securities and Exchange Commission (SEC) Chairman Mary Schapiro told New York Stock Exchange (NYSE) CEO Duncan Niederauer and NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) CEO Robert Greifeld “she needed more political support in Congress to go after market structure” when they asked her to address the issue “earlier this year.” Gasparino went onto report that the “SEC basically punted” on the issue and the problem facing Schapiro’s “legacy going forward, is that this notion of what is a stock market has never been addressed.”
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Excerpts from the report are below.
On SEC Chair Mary Schapiro’s legacy:
“We actually have markets on every trading desk on Wall Street, and that is something that both Duncan Niederauer the CEO of the New York Stock Exchange and Bob Greifeld the CEO of NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), FOX Business has learned, both approached Mary Schapiro earlier in the year to address why we have this insanely fragmented market, and how this insanely fragmented market could essentially lead to another flash crash. Now what did Schapiro tell them -this is from sources close to both exchanges. We’re hearing that Schapiro indicated she needed more political support in Congress to go after market structure. Both Niederauer and Greifeld argued that because of this disjointed market structure, the markets are essentially in disarray. That you have many private markets that operate across Wall Street and this is going to be an issue going forward. This essentially could lead to another flash crash…When you talk to people at the exchanges, people in Washington, they will say simply this; there’s not a lot of will to deal with this issue. Mary Schapiro kind of understands it as an issue. She did not feel she had the commissioners backing her up. Clearly Congress not backing her up. And the SEC basically punted on this…The negative of Mary Schapiro, and I think this is going to be a problem with her legacy going forward, is that this notion of what is a stock market has never been address.”
SEC CHAIRMAN MARY SCHAPIRO TELLS FOX BUSINESS THAT “THE AGENCIES ARE WORKING VERY WELL TOGETHER” TO NARROW THE DEFINITION OF THE VOLCKER RULE
Securities and Exchange Commission Chairman (SEC) Mary Schapiro spoke with FOX Business Network (FBN) about the highly controversial Volcker Rule and about her plans for the future. Schapiro discussed the way various agencies are working to narrow the definition of the Volcker Rule and said she “thinks that the agencies are working very well together” to reach this goal. Schapiro also discussed plans for her career beyond her current term as SEC Chair, and whether she might return to working for the Financial Industry Regulatory Authority (FINRA), saying, “I have no plans right now. I certainly am not going back anywhere I came from.”
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Excerpts from the interview are below.
On her future and whether she would go back to working for FINRA following the end of her term as SEC chair:
“Oh gosh. I have no plans right now. I certainly am not going back anywhere I came from.”
On various government agencies and bank supervisors trying to narrow the definition of the Volcker Rule:
“The agencies have been working very hard to try to come up with a uniform Volcker Rule and in fact the banking regulators, the SEC, and the CFTC all proposed the same rule. Then we got about 19,000 comment letters, very detailed, very thoughtful and we have been working through, as a group, all of those comment letters and trying to come to a final rule that we can all agree upon. There are differences, as you expect there might be differences when you have banks and broker-dealers, swap dealers and others that are such different institutions dealing with the markets in different ways. I think that the agencies are working very well together and trying to come to closure.”
