SEC

New SEC Chief Mary Jo White Thinks the Government Should Bring Cases – ‘To A Point’

A few more things about Mary Jo White, the former prosecutor and corporate lawyer recently chosen by Barack Obama to head the SEC.  Last week, I wrote about White’s involvement in the notorious Gary Aguirre episode, wherein the former U.S. Attorney and then-partner at the hotshot white-shoe defense firm Debevoise and Plimpton helped squelch then-SEC investigator Aguirre’s insider trading case against future Morgan Stanley CEO John Mack.

White, who was representing Morgan Stanley in this affair, went over Aguirre’s head to talk directly to then-SEC enforcement chief Linda Thomsen about “reviewing” the case. After Aguirre was fired and the case against Mack went away, the official responsible for terminating the case, Aguirre’s boss Paul Berger, was given a lucrative, multimillion-dollar job with Debevoise and Plimpton, closing the circle in what looks like a classic case of revolving-door corruption.

There are a few more troubling details about this incident that haven’t been disclosed publicly yet. The first involve White’s deposition about this case, which she gave in February 2007, as part of the SEC Inspector General’s investigation. In this deposition, White is asked to recount the process by which Berger came to work at D&P. There are several striking exchanges, in which she gives highly revealing answers.

Rest here…

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