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The Inside Story on the Breakdown at the SEC

Publication Date: 
February 26, 2009
Source: 
Time
Author: 
Adam Zagorin and Michael Weisskopf

Professor Joseph A. Grundfest is quoted in Time Magazine in an article that faults Christopher Cox of the SEC for the current financial crisis. Time writes:

Historians looking for an early sign that the worst financial crisis since the Great Depression might be deeper than expected could do worse than listen in on a predawn teleconference one Friday last spring. Top Treasury and Federal Reserve Bank officials hunched over their phones in a last-ditch bid to bail out the giant investment bank Bear Stearns Cos. But a crucial voice was missing from the emergency conference call: Christopher Cox, chairman of the Securities and Exchange Commission.

....

Some experts argue that the origins of America's financial crisis are far larger than Christopher Cox. "If you want to cast blame, there are many regulators, agencies and Congress that are as much, or more, at fault than Cox or SEC," says Joseph Grundfest, who was an SEC commissioner in the 1980s.