The SEC has broad authority from Congress to rein in abuses, but it has been hesitant to do so. This needs to change and I have questions that demand answers.
Senator Baldwin places hold on SEC Commissioner nominees until critical questions are answered
Over the last few decades, the influence of our financial markets on the economy has grown substantially. Where once markets supplied workers’ hard-earned savings to companies that needed money to invest, today our markets are primarily used to distribute cash to shareholders. Ever more aggressive investors demand share buybacks and their allies in executive suites — their compensation increasingly dependent on stock price — are all too happy to oblige.
The SEC has presided over this ‘financialization’ of our economy, which has facilitated the looting of the American corporation by short-term shareholders. Taxpayers — who invest in the public education, government regulation, and infrastructure needed for corporations to thrive, and workers — who contribute their time and efforts to build innovative companies, are often viewed as obstacles that must be overcome in order to maximize payouts to shareholders.
Wall Street’s aggressive pursuit of short-term profits at the expense of long-term growth and jobs demands a response. I have pushed the Commission to study buybacks, introduced legislation to curb the abuses of activist hedge funds, and called for stricter rules on executive compensation. Yet, while it has broad authority from Congress to rein in abuses, the SEC has been hesitant to do so.
As a nominee to serve as an SEC Commissioner, it is important that the public know where you stand on these critical issues before the Senate votes on your nomination. I request a written response to the questions listed below before I will agree to a unanimous consent request to hold a vote on your confirmation.
