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Cox Ignores McCain's Criticism

By Michael D. Shear
Sen. John McCain's call for the dismissal of SEC Chairman Chris Cox prompted a direct response from Cox, who said in a statement that he intends to ignore the criticism coming from the campaign trail.

"As someone who's been in public life for over twenty years, I know as well as anyone that occasionally this sort of thing can come with the territory," Cox said. "The best response to political jabs like this is simply to put your head down and not lose a step doing the best job you can possibly do on behalf of those you serve."

In the statement, Cox defends the actions of his agency with a list of steps he said were taken to avert the crisis and deal with its consequences. "It is precisely the wrong moment for a change in leadership that inevitably would disrupt the work of the SEC at just the wrong time," he said in the statement.

Meanwhile, Democrats pounced on McCain's statement that he would have fired Cox if he were president, noting that as the head of an independent agency, Cox is legally shielded from being fired, even though he was appointed by President Bush and confirmed by the Senate.

"After 26 years in Washington, you wold think John McCain would understand how things work," said DNC spokesman Damien LaVera. "Clearly John McCain wasn't kidding when he said the economy is something he doesn't understand as well as he should."

McCain advisers quickly changed their tune, saying that McCain meant to say he would demand the resignation of the SEC chairman if he were president.

"The President of the United States has the power to remove the chairmanship, and always reserves the right to request the resignation of an appointee and to maintain the customary expectation that it will be delivered," spokesman Brian Rogers said. "Perhaps Barack Obama isn't strong enough to change Washington, but John McCain is."

The full statement by Cox, printed on his Web site, is below:

Chairman Christopher Cox
Sent: Thursday, September 18, 2008 4:01 PM
Subject: Today's News

While I have great respect for Senator McCain, we have sometimes disagreed, and this is one such occasion. The SEC has made plain that we have zero tolerance for naked short selling. In this market crisis, the men and women of the SEC have responded valiantly as they always do --with the utmost dedication and professionalism. Addressing the extraordinary challenges facing our markets, the independent and
bipartisan SEC has taken the following decisive actions:

--We adopted a package of measures to strengthen investor protections against naked short selling, including rules requiring a hard T+3 close-out, eliminating the options market maker exception of Regulation SHO and expressly targeting fraud in short selling transactions.

--We issued an emergency order to enhance protections against naked short selling in the securities of primary dealers, Fannie Mae, and Freddie Mac.

--We announced emergency plans for a rule to ensure public disclosure of short selling positions of hedge funds and other institutional money managers.

--We have undertaken sweeping enforcement measures against market manipulation.

--We provided guidance to banks about how to account for credit support of money market funds.

--We've written rules to strengthen the regulation of credit rating agencies, and performed examinations that have led to new rules to reduce rating agency conflicts-of-interest.

--We brought a landmark enforcement action against a trader who spread false rumors designed to drive down the price of stock.

--We have initiated exams of the effectiveness of broker-dealers' controls to prevent the spread of false information intended to manipulate securities prices.

--Our Enforcement Division announced what will be the largest settlements in the history of the SEC for investors in auction rate securities who bought auction rate securities from Merrill Lynch, Wachovia, UBS and Citigroup.

--We entered into a Memorandum of Understanding with the Federal Reserve, to make sure key federal financial regulators share information and coordinate regulatory activities in important areas of common interest.

There is much more work to be done, and the current crisis is presenting new challenges on an hourly basis. What America and the world needs now is steadiness and reduction of uncertainty. History will judge the quality of our response to this economic crisis, but now is not the time for those of us in the trenches to be distracted
by the ebb and flow of the current election campaign. And it is precisely the wrong moment for a change in leadership that inevitably would disrupt the work of the SEC at just the wrong time. I have long made clear my intention to leave the SEC after the end of this Administration. The next President will have an opportunity to look at the major structural questions so important to the regulation and oversight of our financial markets.

I very much appreciate the strong and immediate support of the President. As someone who's been in public life for over twenty years, I know as well as anyone that occasionally this sort of thing can come with the territory. The best response to political jabs like this is simply to put your head down and not lose a step doing the best job you can possibly do on behalf of those you serve. For my part, I plan to do just that. I leave the political campaigns to pursue their own course.

Chris

By Lexie Verdon  |  September 18, 2008; 5:30 PM ET
Categories:  John McCain  
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Comments

Would you people for Obama involving yourselves in politics please learn to do some homework and learn to stay on topic? No wonder you couldn't pass tests in school and weren't smart enough to ask what your loan caps were.

We need to stop this automatic electronic trading, too, these dopes with diplomas that aren't worth the paper they're written on aren't smart enough to trade with their heads and that's one reason this went so far so fast, nor do they care what they cause, as long as their own pockets are packed. The trading floors look like high school cafeterias.

If brokerages and hedge funds want any confidence back from investors and individuals trusting their retirement accounts with you, fire them and hire people who have been around the block more than once. Enough.

Posted by: AmericanWoman | September 20, 2008 8:42 AM | Report abuse

And don't forget what role Greenspan played in all of this, before he rode off into the sunset predicting a recession. Andrea Mitchell calling people who support Palin "uneducated" was just a cover for him and her slanted dishonest journalism. Charlie Rangle calling Palin "disabled" was just a cover for his tax fraud and involvement in this loan crisis.

Pay attention to anyone making outrageous and inflammatory remarks against Palin to divert attention and start looking in their closets. We are noticing a pattern and the crooks in Washington don't want a whistle blower like her in there, in combination with John McCain. Who is stupid? ;)

Posted by: AmericanWoman | September 20, 2008 8:23 AM | Report abuse

These are things Cox did the past couple of weeks. We were pounding the SEC with letters as far back as three years ago to enforce laws on the books since 1934 against illegal short selling activities and securities fraud, which were *defiantly* ignored. With the subsequent removal of the Uptick Rule, in combination with electronic trading, our last line of defense against a crash was gone.

During that same time, Senators like John McCain and Elizabeth Dole were trying to get more oversight on the corrupt Fannie Mae and Freddie Mac, who were packing Democrats' pockets full of cash. They were blocked.

Maybe the Democrats don't mind if the world economy crashes and thinks Obama's ignorance about what is going on makes him the better choice. They certainly didn't mind what those loans they were forcing banks to make to people who couldn't afford them did to us, nor do they seem to believe adults are responsible for their choices, unless they are on the "other side."

Obama's campaign has sunk to the lowest level we've seen since the 1950's and 60's, the tactics of his and his supporters remind us of the KKK.

Trash is as trash does, get those garbage bags off your heads or get out of our way. You've caused enough trouble and cost us enough money. Either that or pay us back.

Posted by: AmericanWoman | September 20, 2008 8:00 AM | Report abuse

PALIN BACKED RON PAUL? http://www.veeppeek.com

YESTERDAY MORE CAME OUT ABOUT SARAH PALINS ALLEDGED AFFIAR. http://www.hotpres.com

Posted by: Anonymous | September 19, 2008 9:17 AM | Report abuse

"Rezko, Ayres, Raines....nice company Barack"

Keating and his five playmates. Nice company Juan !

Posted by: MA | September 19, 2008 8:26 AM | Report abuse

Roseann Barr writes:

"Cox sound as an arrogant and elitist snob."

Then why did McCain vote to confirm Cox as SEC chairman in 2005 ?

Chris Cox by all accounts was a reputable and hardworking California Congressman. And his efforts at the SEC were aligned with the Bush WH's policies.

But McPain thinks nothing of throwing Cox under the bus in his grasping, desperate bid for the WH.

My guess is McTraitor, no longer able to simply ignore Bush and his record of support for him, will start hammering GW as he continues to fall behind Obama in the polls.

McConfused's flip fops these last few days have been dizzying indeed. But my guess is, to quote a former great Republican, "you ain't seen nuthin yet !".

Posted by: MA | September 19, 2008 8:25 AM | Report abuse

****************************************
Note the date on this Politico piece by Ben Smith- OF COURSE OBAMA "NEVER HEARD OF" His Advisor Franklin Raines who took $90 Million out of Fannie Mae and ran it into the ground- I'm sure donating some to Obama- stay tuned!

******************************************
July 16, 2008
Categories: Barack Obama

Advice from Raines

An ill-timed -- for Obama -- profile of former Fannie Mae CEO Franklin Raines, forced out in an accounting mess a few years ago.

The Style Section piece reports that he's recently been taking "calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters."

Hard to find anybody in the mortgage industry who's looking real great right now, but Fannie Mae's critics, in particular, seem to have been vindicated.

By Ben Smith 11:42 AM
******************

Rezko, Ayres, Raines....nice company Barack


Posted by: Scott | September 19, 2008 8:22 AM | Report abuse

****************************************
Note the date on this Politico piece by Ben Smith- OF COURSE OBAMA "NEVER HEARD OF" His Advisor Franklin Raynes who took $90 Million out of Fannie Mae and ran it into the ground- I'm sure donating some to Obama- stay tuned!

******************************************
July 16, 2008
Categories: Barack Obama

Advice from Raines

An ill-timed -- for Obama -- profile of former Fannie Mae CEO Franklin Raines, forced out in an accounting mess a few years ago.

The Style Section piece reports that he's recently been taking "calls from Barack Obama's presidential campaign seeking his advice on mortgage and housing policy matters."

Hard to find anybody in the mortgage industry who's looking real great right now, but Fannie Mae's critics, in particular, seem to have been vindicated.



By Ben Smith 11:42 AM
******************

Rezko, Ayres, Raynes....nice company Barack

Posted by: Scott | September 19, 2008 8:21 AM | Report abuse

I just don't trust Obama since he did not pick Clinton on the first place. Now he need her help. Very unexperienced. Just because the economic is bad, it doesn't mean you have to chose the other party. Unless, the Clinton is the VP pick, I am with McCain. Obama just can't do the job with Biden withour Clinton. You are all crazy just to pick Obama/Biden ticket and let them screw around like a no brainers. They thought they knew but they don't. Otherwise, Clinton will not show up.

Posted by: Jayne | September 18, 2008 8:47 PM

Jayne wants to change the subject too. Could not think of anything about Cox so you thought you better change the subject. Stay away from issues, keep the attacks personal.

Posted by: Anonymous | September 18, 2008 10:49 PM | Report abuse

The most dangerous people in any society are FOOLS! And this election there will be avalanche of them. THey are the people who give rise to cult-like persona like OBAMANIA- these people are swayed easily to the point of self-destruct. Well history has shown us that these people rise fast and fade fast in the token, Because common sense always prevails for the common good. So you foolish ones enjoy all this bro ha ha for its' short duration.

Posted by: roseann | September 18, 2008 10:04 PM

This is an ad hominem attack. Roseann has no idea about the economy or finance. Her knowledge on the subject is comparable to Sarah Palin

Posted by: Ronnn | September 18, 2008 10:44 PM | Report abuse

We all should ignore McCain's attack, it was a poorly thought out rant.

Posted by: Ronnn | September 18, 2008 10:40 PM | Report abuse

McCain: Cox should be fired for not regulated hedge funds.

McCain did not know that the SEC can not be fired and that hedge funds are not under the jurisdiction of the SEC.

The senator is not used to making statements that are meant to be acted on. The senator is full of blather. Obama talks about real solutions and the ideas he proposes he has held for some time.

In 2006 Obama talked about the need for more regulation. McCain, Cox and Bush were for deregulation. That failed so McCain changed sides and wants regulation and bailouts too. If he had any understanding of finance he would have known that there was a problem last summer. Trouble is his advisers a industry lobbyists who opposed regulation. If you rely on lobbyists you only get one viewpoint.

A McCain presidency will be full of confusion because of a lack of diversity of thought. Bush's economic policy was formulated only by deregulators. No diversity was present there either.

This post will be followed by ad hominum attacks on Obama and this post will be ignored. McCain supporters no they won't win on the issues so dissembling is all that is left.


Posted by: david J | September 18, 2008 10:36 PM | Report abuse

roseann, you used to have a TV show didn't you? You the one that grabbed your crotch and spit during the national anthem?

Posted by: J Lauber | September 18, 2008 10:27 PM | Report abuse

The most dangerous people in any society are FOOLS! And this election there will be avalanche of them. THey are the people who give rise to cult-like persona like OBAMANIA- these people are swayed easily to the point of self-destruct. Well history has shown us that these people rise fast and fade fast in the token, Because common sense always prevails for the common good. So you foolish ones enjoy all this bro ha ha for its' short duration.

Posted by: roseann | September 18, 2008 10:04 PM | Report abuse

"Democrats pounced on McCain's statement that he would have fired Cox if he were president, noting that as the head of an independent agency, Cox is legally shielded from being fired."

Don't know whether Grumps has gone off his meds, but that hair trigger to outbursts seems to be activated.

Posted by: Time for a change | September 18, 2008 10:04 PM | Report abuse

Criticism is the only thing McCain has. We should all ignore it!

Posted by: J Lauber | September 18, 2008 10:00 PM | Report abuse

Posted by: scrivener | September 18, 2008 9:57 PM | Report abuse

Cox sound as an arrogant and elitist snob. Sounds familiar Obama with his snooty lib dem and hollywood pompous fools. His long winded rhetorics,vague and bombastic ideas not even he knows what they mean. Obama is likened to the 'flim flam man' with all his fake cures only the deaf, dumb,and blind idiots would get caught in his web of lies and manipulation.

Posted by: roseann | September 18, 2008 9:48 PM | Report abuse

Chairman Cox's understatement is deafening. When you know the other person is wrong, when you have better things to do, more important matters to tend to, what do you do? IGNORE THE IDIOT. John McCain is worse than useless; he is a DISTRACTION. Someone needs, as privately as necessary, to give McCain a neurological exam. He is behaving very weirdly, forgetting things, and basically doesn't seem to be "there" mentally. Even though he has, by now, lost our confidence, we should not wish him ill, if he is suffering from some sort of impairment.

Posted by: Time after time | September 18, 2008 9:01 PM | Report abuse

I just don't trust Obama since he did not pick Clinton on the first place. Now he need her help. Very unexperienced. Just because the economic is bad, it doesn't mean you have to chose the other party. Unless, the Clinton is the VP pick, I am with McCain. Obama just can't do the job with Biden withour Clinton. You are all crazy just to pick Obama/Biden ticket and let them screw around like a no brainers. They thought they knew but they don't. Otherwise, Clinton will not show up.

Posted by: Jayne | September 18, 2008 8:47 PM | Report abuse

> We adopted a package of measures to strengthen investor protections against naked short selling, including rules requiring a hard T+3 close-out, eliminating the options market maker exception of Regulation SHO and expressly targeting fraud in short selling transactions.

What the hell is this guy talking about? Does anyone speak English around here?

I admit that I don't understand the economy as well as I should, but I'm convinced that deregulation and lower taxes will make it all work out somehow.

Vote for me in 2008!

Posted by: John McCain | September 18, 2008 8:44 PM | Report abuse

Poor old man McCain. He tried to score a couple of easy pol. points but it backfired.

I'd fire him... i mean i'd ask him to resign.

the fundamentals are strong.... i mean the american workers are strong.

I guess McCain's fundaMENTALs are betraying him in the heat of the campaign.

Posted by: Thor | September 18, 2008 8:20 PM | Report abuse

Does John McCain MEAN anything he has said over the course of this campaign? With every misstep comes a surrogate saying, "Well Senator McCain meant..."

If he can't get it right now, odds are he won't be getting it right later. I'm sick of the excuses his campaign has been coming up with since they are now forced to focus on the issues, instead of the lies they have been perpetuating.

OBAMA/BIDEN '08

Posted by: DinahS | September 18, 2008 7:53 PM | Report abuse

Jake

You are right Nancy NEEDS to Grow a pair like Hilary.

Posted by: jakeisalwaysrightofme | September 18, 2008 7:30 PM | Report abuse

Elmer Fud McSame no AIG Bailour Monday
Bailout Good Tueday

No Regualations Eternity

Fire SEC Chairman More REGULATIONS yesterday

Where is that PESKY RABBIT?

Elmer FUDD MCSAME

Posted by: flipflopmcsameandsayanything | September 18, 2008 7:26 PM | Report abuse

SonOfHistoryProf:

Very funny (not).

Posted by: JakeD | September 18, 2008 7:25 PM | Report abuse

dickcheneyisacorruptliar:

Regardless of whether he is a corrupt liar or not, the Vice President is ONE person the President cannot fire. Besides, it was DEMOCRAT Nancy Pelosi who took impeachment "off the table" ...

Posted by: JakeD | September 18, 2008 7:24 PM | Report abuse

This just in:

McCain says he did not mean to offend Zapatero, leader of Spain. Rather, due to the terrible condition of the Spanish Economy and particularly the housing financing crisis in Spain, McCain would, if president, fire Zapatero as leader of Spain.

Or at least, he would ask for, and expect, his letter of recommendation.

Posted by: SonOfHistoryProf | September 18, 2008 7:24 PM | Report abuse

Revolver Trooper Palin:

The President can demand (and expect) Cox's resignation. As for Sen. McCain's alleged "horrible gaffe in insulting" Spain, you are aware that President Bush has not granted him a White House as well?

Posted by: JakeD | September 18, 2008 7:22 PM | Report abuse

Fire Cox Fire Bush Fire Dick Cheney

Fire McSame

Posted by: dickcheneyisacorruptliar | September 18, 2008 7:21 PM | Report abuse

What a classy guy:

www.dailymail.co.uk/femail/article-1024927/The-wife-John-McCain-callously-left-behind.html

Posted by: The Real McCain | September 18, 2008 6:55 PM | Report abuse

More Released today about Obama's alleged homosexual affair.

Posted by: JakeD | September 18, 2008 6:31 PM | Report abuse

More Released today about Palins alledged affair.
http://www.hotpres.com

Palin pregnant again??
http://www.veeppeek.com

Posted by: Anonymous | September 18, 2008 6:12 PM | Report abuse

It is time to for Obama to explain his relationships with Frederick Raines and James Johnson, the former CEO"s of Fannie Mae, who made hundreds of millions of dollars from that institution?

It is time for Obama to explain what he has promised the individuals from Fannie and Freddie who have gifted him with the second largest amount of contributions, after Senator Dodd, in just four years?

It is time for Obama to explain why he failed to join McCain in 2005 when McCain pointed out the dangerous practices that Fannie Mae and Freddie Mac were putting the economy under and demanded stricter regulation?

It appears to me that Obama is part of the problem and not part of the solution!

Posted by: Mike H | September 18, 2008 6:11 PM | Report abuse

McCain's comments deserved to be ignored. He is wrong-footing again today in stating that as president he would fire the SEC chair. He can't actually do this and he should have known that upfront. Yet another huge blunder on his part. Add in the horrible gaffe in insulting the Spanish Prime Minister and McCain is really showing signs of losing all his marbles.

McCain, wrong on the facts, wrong on the issues, wrong for America.

Posted by: Revolver Trooper Palin | September 18, 2008 6:04 PM | Report abuse

I'm Binky de Rothchild and I do not concur with my tacky American cousin, Lynn, who yesterday endorsed McCain-Palin.

She is sadly suffering from high anxiety since the markets have been so shaky and is looking into group therapy with other disillusioned Republicans.

I am Binky de Rothchild and I approve this message!

Posted by: nelson_stephanie | September 18, 2008 5:55 PM | Report abuse

Yer doin' a heck of a job, Chrissy!

Posted by: george w. bush | September 18, 2008 5:55 PM | Report abuse


From:
Head of State
http://headofstate.blogspot.com/2008/09/also-will-call-for-democratization.html

Thursday, September 18, 2008
Also Will Call For Democratization, Removal of Burger King

ABC News:

"At a joint rally in Cedar Rapids, Iowa Thursday, Republican John McCain slammed the Security and Exchange Commission (SEC) for being "asleep at the switch" saying that if he were president, he would fire Chris Cox, the chairman of the SEC since 2005 and a former Republican congressman...
But while the president nominates and the Senate confirms the SEC chair, a commissioner of an independent regulatory commission cannot be removed by the president."

Perhaps he could name him President of Spain.

Cite:
Head of State
http://headofstate.blogspot.com/2008/09/also-will-call-for-democratization.html

Posted by: emily | September 18, 2008 5:50 PM | Report abuse

Hooray for Michelle Obama - she made it to the Best Dressed list this year, just announced today. I thought she looked gorgeous and her style fab at the Convention... she always does look wonderful.

By contrast, Cindy McCain spent well over $300K on her wardrobe and jewels for the tacky GOP convention (that Nazi-style hate fest) and her hair looked like a hooker's.

Enter Palin and her poor white trash family - she may be together enough these days but it took her years of college/university hopping before she finally did graduate with a degree in journalism from....(drum roll please!) .... Idaho State.

Then we have her lovely brood of trailer trash, er "tribe" and their various woes -- one in trouble with the law so shipping off to fight in EYE-RACK, the other knocked up and forced (at rifle-point?) to marry her reluctant "fiance" at the last minute....

Let's have no more trailer trash, no more tacky displays of vulgar, ill-begotten wealth, and no more FAILED BANKING SYSTEMS and economic disasters: VOTE for the truly classy, intelligent and articulate ticket -- OBAMA-BIDEN.

Posted by: Mr. Binky de Rothchild | September 18, 2008 5:50 PM | Report abuse

So Phil Gramm, John McCain's supposedly banished economic guru and campaign chairman, has been seeking Ron Paul's endorsement. Paul's answer? Not in a million years.


Here Ron Paul is just a few minutes ago:

"I can't endorse somebody (McCain) that disagrees with me on all the major issues -- on the federal reserve system, on spending and taxes, and No Child Left Behind, and McCain-Feingold, and foreign policy especially. I mean I could never support somebody who thinks that its funny to say "bomb, bomb, bomb Iran." That to me is not somebody I could endorse ever."

-Ron Paul - 9/18/08
.
http://www.youtube.com/watch?v=mOb3cC2FVIg
.


Paul's strident non-endorsement is the biggest deal here, but there's another issue: what in the world is Phil Gramm doing politicking on John McCain's behalf? Hadn't he been banished to Belarus? Does this mean that John McCain now endorses Gramm's "Americans are whiners" comments?

Posted by: Bush + McCain = "W"orthless | September 18, 2008 5:34 PM | Report abuse

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