First Big Test for New SEC ChairTweet
June 13, 2013
The appointment of Robert Rice as counsel for the Securities and Exchange Commission (SEC) is the first big test for Mary Jo White, the new head of the SEC, according to an article in CNN Money.
A press release about Rice’s hiring failed to disclose that while recently at Deutsche Bank, Rice was named as a respondent in a complaint over the improper firing of SEC whistleblower Eric Ben-Artzi.
Ben-Artzi alleges that Deutsche Bank understated their losses by up to $12 billion.
From the article:
According to the Financial Times, Rice led Deutsche's internal investigation into the alleged multibillion-dollar misstatement. While Deutsche asserts that it did nothing wrong, the SEC is supposedly still looking into the accounting fraud allegations.
Because of this, Rice and the SEC would seem to be in a bit of a conflict. The SEC requires company proxies to disclose certain potential conflicts of interest and related party transactions by directors. Shouldn't Rice's involvement on this significant Deutsche matter been openly disclosed?
The article raises the concern that because Rice was involved in this potential improper firing of a whistleblower, hiring him to be the counsel for the SEC might have a chilling effect on future whistleblowers.
Read more at CNN Money.
Andre Francisco is the Online Producer for the Project On Government Oversight.
Topics: Financial Sector
Authors: Andre Francisco
- June 16, 2016
- May 11, 2016
- April 22, 2016
- April 15, 2016
- February 10, 2016
- February 9, 2016
- November 12, 2015
- October 15, 2015
Browse POGOBlog by Topic
POGO on Facebook
Podcast; Social Media, Internet Provides Opportunities, Challenges for Lawmakers
The Congressional Management Foundation offers the Gold Mouse Awards annually to members of Congress who make the most of the opportunity the digital world offers them. POGO spoke with members of Rep. Mike Honda's communications team about their award.