Cox Sympathizes With Executives Who Lie to Regulators

AP reports that Bush will nominate Rep. Chris Cox to chair the SEC. In 1995, Cox “sponsored the Private Securities Litigation Reform Act, which restricted the ability of investors to sue for securities fraud.” He sponsored the bill the same year he was sued for “misleading regulators and investors about the condition of a real estate investment fund” in the 1980s. The charges against Cox personally were dropped after his law firm settled for an undisclosed amount. Cox said the experience caused him “to sympathize with people who are victimized in these suits.” That sympathetic group includes people who lie to investors, regulators and the public.