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Schapiro confirmed as chairwoman of SEC

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By Sara Hansard

January 23, 2009 10:43 am ET

Mary Schapiro, who has led the brokerage industry’s self-regulatory organization since 2006, was unanimously confirmed by the Senate last night to be the chairwoman of the Securities and Exchange Commission.

Ms. Schapiro, 53, chief executive of the Financial Industry Regulatory Authority Inc. of New York and Washington, promised at her confirmation hearing to take the “handcuffs off” the SEC’s enforcement division.

She takes over the agency from Christopher Cox, who has come under heavy criticism for the agency’s failure to detect the catastrophic flaws in mortgage backed securities and other derivatives that led to the demise of Wall Street investment banks.

To add to those problems, the SEC missed numerous red flags with Bernard L. Madoff Securities LLC of New York, which is accused of operating a $50 billion Ponzi scheme, the largest of all time.

A date for Ms. Schapiro’s swearing-in has not yet been set, SEC spokesman John Nester said.

Meanwhile, the Senate is scheduled to take a roll call vote on Treasury secretary-designate Timothy Geithner Monday evening.

Mr. Geithner, who has come under criticism for not paying $34,000 in taxes, was approved by an 18-5 vote of the Senate Finance Committee yesterday.

All five nay votes were cast by Republicans.

Democrats on the committee were willing to overlook the tax problems, saying his mistakes were unintentional and noting that he had repaid the back taxes with interest.

He is expected to be approved by the Senate.

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