PDA

View Full Version : Elections LOL McCain would fire SEC chairman.... except


Logical
09-19-2008, 12:55 AM
he would not have the power. Another bad gaffe on the economy.ROFL

From the Fact Check Desk: Could McCain 'Fire' the SEC Chairman?

September 18, 2008 3:24 PM
<!-- Natalie Gewargis
--> At a rally in Cedar Rapids, Iowa, this afternoon, Sen. John McCain, R-Ariz., attacked Chris Cox, the chairman of the Securities and Exchange Commission, saying "the chairman of SEC has betrayed the public trust. And if I were president, I would fire him."
But the president does not have the power to fire the SEC chairman.


Commissioners of the following independent regulatory commissions cannot be removed by the president: the SEC, the Federal Reserve Board, the National Labor Relations Board, the Federal Communications Commission, and the Federal Trade Commission.
Created in the wake of the Crash of 1929, the SEC was conceived by Congress in the Securities Exchange Act of 1933, and came into being in 1934. Its commission is composed of five members, and no more than three can be of the same political party. Commissioners are nominated by the president and confirmed by the Senate for staggered five-year terms. The president designates one to serve as chair.


Former Rep. Christopher Cox, R-Calif., was nominated by President George W. Bush (to serve as commissioner and chair in 2005 after the resignation of Chairman William Donaldson, who had several "ideological" disagreements with other members of the panel. (Donaldson, also a Bush nominee, has since endorsed Sen. Barack Obama, D-Ill.)


The courts have generally upheld the independence of commissioner for executive control. In 1935, President Franklin Delano Roosevelt fired a member of the Federal Trade Commission, an act the U.S. Supreme Court ruled unconstitutional.

HolmeZz
09-19-2008, 12:58 AM
This is really a brutal gaffe. Not just from the fact that McCain thinks he'd have powers he actually doesn't, but that this wasn't caught by anyone on his staff. His campaign is royally incompetent.

jAZ
09-19-2008, 01:07 AM
More "nit-picking". [/Guru]

Ari Chi3fs
09-19-2008, 01:29 AM
Commissioners of the following independent regulatory commissions cannot be removed by the president: the SEC, the Federal Reserve Board, the National Labor Relations Board, the Federal Communications Commission, and the Federal Trade Commission.


Of course not. The powers that be, wouldn't want some out of control president stepping in their turf. The powers that be have got this shit in place... and the vice is screwed pretty tight.

Damn you Powers that Be!!!

Logical
09-19-2008, 01:35 AM
Commissioners of the following independent regulatory commissions cannot be removed by the president: the SEC, the Federal Reserve Board, the National Labor Relations Board, the Federal Communications Commission, and the Federal Trade Commission.


Of course not. The powers that be, wouldn't want some out of control president stepping in their turf. The powers that be have got this shit in place... and the vice is screwed pretty tight.

Damn you Powers that Be!!!

Funny thing is he would have a powerful, power of suggestion. They almost always step aside if asked. The point is that he does not have the power to demand and he did not know it. That coupled with today's other gaffe on Spain being in the Latin American hemisphere and it was not a good day for ole Johnny.

Guru
09-19-2008, 01:36 AM
More "nit-picking". [/Guru]
ROFL

orange
09-19-2008, 01:40 AM
“The creation, composition, and powers of the SEC are found in the Securities Exchange Act of 1934. The commission consists of five members who are appointed by the President with the advice and consent of the Senate. The terms of the commissioners are staggered and the basic length of each term is five years. No more than three of the commissioners may be members of the same political party. The statute does not provide for a chairman. Until 1950, the Chairman was elected annually. Following Reorganization Plan No. 10 of 1950 (see, Reorganization Act of 1949, 5 U.S.C. 901-913), the President designates the chairman. Pursuant to this Reorganization Plan, the chairman succeeded to most of the executive and administrative functions of the commission.” S.E.C. v. Blinder, Robinson & Co., Inc., 855 F.2d 677, 681 (10th Cir. 1988).

The President’s powers with respect to appointment and removal of commissioners from the commission thus differ from the President’s power with respect to the appointment and removal of one of those commissioners from the office of Chairman. As to the former, “The Act does not expressly give to the President the power to remove a commissioner. However, for the purposes of this case, we accept appellants’ assertions in their brief, that it is commonly understood that the President may remove a commissioner only for ‘inefficiency, neglect of duty or malfeasance in office.’” Id. Whether the President could remove Cox from the Commision on one of these grounds is debatable, at best, but at least theoretically it’s possible.

Update: To like effect, see MFS Securities Corp. v. S.E.C., 380 F.3d 611, 619 (2d Cir 2004, in which the court stated that “the power to remove Commissioners belongs to the President,” albeit while noting that that “power is is ‘commonly understood’ to be limited to removal for ‘inefficiency, neglect of duty or malfeasance in office.’” See also S.E.C. v. Bilzerian, 750 F.Supp. 14, 16 (D.D.C. 1990), in which the court stated that: “While the Act does not expressly give the President the power to remove a commissioner, it is generally accepted that the President may remove a commissioner for inefficiency, neglect of duty, or malfeasance in office.” So ABC’s Wright’s and Tapper’s citation of a 1935 SCOTUS case dealing with a different agency (namely, the FTC) is irrelvant. The understanding with respect to the SEC is that the President, at the very least, can remove a Commissioner for cause.

What is not debatable, however, is that “The Chairman of the SEC serves as such solely at the pleasure of the President.” Harvey L. Pitt & Karen L. Shapiro, Securities Regulation by Enforcement: A Look Ahead at the Next Decade, 7 Yale J. on Reg. 149, 280 n.557 (1990). Indeed, the Tenth Circuit so held in the Blinder, Robinson case cited above. See 855 F.2d at 681, stating that “as the President has the power to choose the chairman of the SEC from its commissioners to serve an indefinite term, it follows that the chairman serves at the pleasure of the President.”

Hence, when McCain said “The Chairman of the SEC serves at the appointment of the President,” he was right at the very least insofar as Cox’s position as Chairman (as opposed to his position as a commissioner) is concerned.

http://www.stephenbainbridge.com/punditry/comments/massive_misinformation_on_the_web_the_president_can_fire_the_sec_chairman/

orange
09-19-2008, 01:43 AM
So in other words YES McCain could ABSOLUTELY fire Cox from the chairmanship.

He MIGHT be able to remove him from the commission altogether, though unlikely.

ROYC75
09-19-2008, 01:44 AM
It's a statement that the behavior is not tolerated..... Now with McCain not knowing this,it's NO BIG DEAL. Seriously, Obama said, why stop there, fire them all, get rid of all of them.

( Obama ) He didn't know it either........

Apples - Oranges .......

Logical
09-19-2008, 02:01 AM
It's a statement that the behavior is not tolerated..... Now with McCain not knowing this,it's NO BIG DEAL. Seriously, Obama said, why stop there, fire them all, get rid of all of them.

( Obama ) He didn't know it either........

Apples - Oranges ....... You seem to have got that all wrong, at least about Obama read below.
Obama mocks McCain's call to fire SEC chairman

By TERENCE HUNT – 6 hours ago
ESPANOLA, N.M. (AP) — Democratic presidential nominee Barack Obama promised fresh ideas Thursday to calm America's financial meltdown and help struggling families avoid mortgage foreclosure, saying "this is not a time for fear, it's not a time for panic."
Obama also heaped criticism and sarcasm on Republican rival John McCain and mocked his promise to fire the head of the Securities and Exchange Commission if elected.
"I think that's all fine and good but here's what I think," Obama said. "In the next 47 days you can fire the whole trickle-down, on-your-own, look-the-other way crowd in Washington who has led us down this disastrous path.
"Don't just get rid of one guy. Get rid of this administration," he said. "Get rid of this philosophy. Get rid of the do-nothing approach to our economic problem and put somebody in there who's going to fight for you."
Obama came up with yet another way to poke fun at McCain for his comment Monday that the fundamentals of the economy were strong. "This comment was so out of touch that even George Bush's White House couldn't agree with it when they were asked about it. They had to distance themselves from John McCain."
President Bush has used the same language many times but his press secretary would not repeat the line Wednesday in the face of historic financial turbulence.
With the economy rocketing to the front of the campaign agenda, Obama said he would unveil new proposals Friday in Florida. Senior members of his economic team were flying to Miami to meet with Obama before his announcement.
Obama also had telephone discussions Thursday about the financial markets with Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson, New York Mayor Michael Bloomberg, former Fed chief Paul Volcker and former Treasury Secretary Lawrence Summers.
Summers and former Treasury Secretary Robert Rubin were among those expected in Florida for Friday's meeting. Billionaire investor Warren Buffett and former Bush administration Treasury Secretary Paul O'Neill were to participate by telephone, along with O'Neill and others.
Obama's stop in northern New Mexico's Rio Arriba County was aimed at energizing the Hispanic vote, which is crucial for his hopes of carrying this state. New Mexico voted for George W. Bush in 2004 but Democrat John Kerry got 65 percent of the vote in Rio Arriba. The county is about 73 percent Hispanic and 12 percent Native American, according to the 2000 Census.
Gov. Bill Richardson, warming up the crowd in a community plaza, said the Hispanic vote in tossup states Colorado, New Mexico and Nevada "is going to decide this election." Obama visited each of those states, along with California, on his Western swing and then was heading to Florida for two days of campaigning. He ended the day at an Albuquerque fundraiser that hosts said raised more than $1.7 million.
"I told Sen. Obama just moments ago that we can guarantee in Rio Arriba 102 percent of the vote," Richardson joked.
Saying that McCain strongly advocated deregulation and then changed his mind, Obama said, "We can't afford to lurch back and forth between positions depending on the latest news of the day when dealing with an economic crisis.
"We need some clear and steady leadership and that's why I was ahead of the curve in calling for regulation," he said. "And that's why I'm calling on the Treasury and the Federal Reserve to use their emergency authorities to maintain the flow of credit, to support the availability of mortgages and to ensure that our financial system is well capitalized."
In response, McCain campaign spokesman Tucker Bounds said, "When Barack Obama came to Washington, he chose to strengthen his ties to spiraling lenders like Fannie Mae, Freddie Mac and their jet-set CEOs, not make change. The American people cannot afford leadership that puts a higher premium on campaign contributions than protecting hardworking Americans."
Briefly outlining his proposals, he said he would call for a Homeowner and Financial Support Act "that would establish a more stable and permanent solution than the daily improvisations that have characterized policy making over the past year."
He said his measures would provide capital to the financial system, insure liquidity to allow the financial markets to function and "get serious about helping struggling families to restructure their mortgages on affordable terms so they can stay in their homes."
The new proposals were intended to demonstrate that Obama is the candidate who would bring change, not just promise it, and that he has the ideas to prove it.
"Everywhere you look," he said, "the economic news is troubling. But here's the thing for so many of you here in northern New Mexico and for so many Americans — this isn't really news at all. Because you've been going through hardships for a lot longer than Wall Street has."
"Here's what I also know," Obama said. "This is not a time for fear, it's not a time for panic. This is a time for resolve and it is a time for leadership."