Q: Why would a successful private attorney decide to go into regulation?
A: I’ve been doing this for 30 years, and I’ve enjoyed it immensely. I could keep on doing this. But 30 years is 30 years. A friend of mine once spoke of the phenomenon as “repotting yourself.” I had thought I would teach. It’s something I always wanted to do, and I started out my career teaching. Just as I was looking toward that, (former Denver SEC chief) Randy Fons announced he was leaving. I have dealt with the SEC for years and years. Having been opposed to the SEC, having dealt with the SEC, knowing the people who are there, I really have a high regard for the group and what they do. I had always thought perhaps after teaching I might take a public- service position. So this kind of turned the order on its head.
Q: How do you feel about taking companies to court instead of defending them?
A: I have worked with companies, and I understand their perspective. I understand the perspective of professionals who work in the areas of securities, audits, investment banking. I’m going to bring that knowledge with me. But if somebody takes off and does something that is basically dishonest, I don’t have any hesitation in bringing the enforcement power of the commission to bear. The commission is charged with keeping the markets functioning. The folks who are out there doing it depend on that. So I don’t view it as quite the dichotomy of, “Gee, one day I was defending everybody and the next day I’m prosecuting everybody.”
Q: How would you answer critics who might say a former private attorney can’t be a tough enforcer?
A: Well, I think I will be. But untried virtue is untried virtue. I think people will have to make up their mind about me when they see what I do.
Q: Where will you focus your resources at the SEC?
A: One of the primary tasks of the office and the commission is enforcement. There’s been a hiring freeze in place. My hope is that as funding increases, we’ll see enforcement activities increase. I’m interested in the initiative that SEC Chairman Christopher Cox has started in the protection of older Americans and their investments. This region attracts a fair number of people who are moving toward retirement. Issues like corporate governance, hedge-fund regulation and mutual-fund regulation also are very important. The whole stock-option issue has become a very current topic.
Q: How aggressive should the SEC be in enforcement? Has it done enough?
A: I wouldn’t join the group if I didn’t think they were doing a really good job. I would like to think that investors believe that the people who are working for the SEC are aggressive in protecting and assuring fair treatment by way of disclosure, the prevention and punishment of fraud and assuring fair and efficient markets. To get there, you’ve got to be aggressive. Also, I hope to be a well-informed regulator whose judgments are viewed as fair.
Q: You earned a doctorate in legal history from the University of Virginia before you went to law school. Did you expect to be a law professor?
A: I went to law school not because I thought I’d pursue a career in the practice of law. I thought it would be something I needed to have to really understand legal concepts. If somebody was talking about tort law or contract or securities law, what were they talking about? After I went to the University of Chicago law school, it was a tough time to be out there trying to teach. So I tried (legal) practice to see if I could learn something there. I started with (Gibson, Dunn & Crutcher) in a program where you work in each area of practice. I did that for three or four years and thought, “You know, I really like this.”
Q: What do you do for fun?
A: I’m big fan of ocean kayaking. It’s not river kayaking; it’s more designed for people 50 and older. I’ve been out kayaking with whales, and that is the most extraordinary experience. When that happens, I lose all sense of time and I’ll follow them anywhere. I remember one time it took me three hours to get back to shore. … I have a great family. My wife, Marion, and I have two grown boys, Peter and Timothy.
Edited for space and clarity from an interview by Denver Post staff writer Greg Griffin.
