Dean Blake D. Morant recently sat down with Mary Schapiro, JD '80, Former Chair of the U.S. Securities and Exchange Commission (SEC), to discuss her time at GW Law, her career, and her role in shifting financial regulations in the United States.
Though Mrs. Schapiro didn't go into GW Law with a straightforward career plan, the actions of two wealthy oilmen pushed her in the direction of commodities. The year Mrs. Schapiro graduated, Nelson and Herbert Hunt, known as the Hunt brothers, were being investigated publicly for their attempt at manipulating the silver market for their own benefit. After reading about the case and the investigation by the Commodity Futures Trading Commission (CFTC) daily, Mrs. Schapiro knew what she wanted to do with her law degree. "That's what I want to do," she said."I want to go after people who are so arrogant as to think that they have a right to disadvantage everybody else in the world in order to make themselves money by manipulating the price of a worldwide commodity." Her first job after passing the bar was with the CFTC.
Beginning as a trial attorney, Mrs. Schapiro quickly discovered that type of work wasn't for her. "As much as I enjoyed enforcement work, I really loved the policy," she said. "Policymaking is forward-looking. How are we going to solve this so it doesn't happen again?" In 1988 she was appointed by President Ronald Reagan to fill a seat on the SEC, a step she describes as "happenstance." President George H. W. Bush reappointed her to the same position in 1989 and President Bill Clinton appointed her to acting Chair of the SEC and Chair of the CFTC in 1994. Mrs. Schapiro joined the National Association of Securities Dealers (NASD) in 1996 and spent the next 12 years with a focus on regulating the financial industry.
In January 2009, just a day after President Barack Obama was sworn in and in the middle of one of the worst financial crises in the United States, the Senate unanimously confirmed Mrs. Schapiro's appointment to be the SEC's first female permanent Chair. "I had a lot of ideas. We had to fix the SEC. We had to take accountability for what happened with Madoff. We had to acknowledge that the agency had stumbled. And we had to put out a plan to show the world how we were going to try to ensure that that could never happen again."
During her tenure at the SEC, Mrs. Schapiro focused on enforcement programs and legislation to better address the modern financial markets, protect investors, and fix the issues that caused the financial crisis of 2008. Many of the regulations and programs initiated by Mrs. Schapiro ultimately lead to the famous Dodd-Frank Wall Street Reform and Consumer Protection Act, a massive piece of financial reform legislation that brought the most changes to the U.S. financial system since the Great Depression.
Reflecting back on her experience, she had an important piece of advice for students trying to navigate their careers. "I think it's great to come with a plan, but I think you've got to be open to something else just grabbing your imagination, something else that you feel more passionate about. Be open to trying new things."
Watch the video below for the full discussion with Mary Schapiro.