Veteran regulator Richard Ketchum, the new CEO of the brokerage industry’s self-policing organization, yesterday promised tough action against financial fraud as regulators face criticism of lax oversight, reports the New York Times.
Mary Schapiro headed FINRA until she became chairman of the SEC last month. She fell under scrutiny when the Senate questioned her about the lack of oversight by FINRA of Bernard Madoff’s operations.
FINRA’s interim CEO Stephen Luparello was also vigorously questioned by congressional committees examining the handling of Madoff’s ponzi scheme.
Ketchum is currently CEO of the oversight body, NYSE Regulation, and is chairman of FINRA’s board of governors. He will continue his role as FINRA board chairman and told the NYT that he has a “very effective and very aggressive” enforcement team.
”We have to eliminate the stovepipes,” Ketchum said, adding that lacking oversight of investment businesses forces FINRA to operate ”with a blindfold, with our hands tied behind our backs.”
Before becoming chief regulatory officer of the NYSE in 2004, Ketchum was general counsel of the corporate and investment bank of Citigroup Inc. Prior to that, he worked at the National Association of Securities Dealers, the Nasdaq Stock Market and the SEC, where he headed the market regulation division.