STANDARDS FOR THE S.E.C. The general purpose of the statutes administered by the Securities and Exchange Commission is “to protect the interests of the public and investors against malpractices in the securities and financial markets." More specifically, the commission is charged with preventing anyone from selling securities by means of any "untrue statement of a material fact or any omission to state a material fact" of from engaging in "any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser." The Senate Banking Committee has now voted to call back William J. Casey for further questioning on his qualifications to be chairman of the S.E.C. Three weeks ago the Senate committee tentatively approved Mr. Casey's nomination by President Nixon, but has now decided to look into a lawsuit in which he had been found guilty of plagiarism and two other cases in which he was charged with violating the securities laws. One of these securities cases was settled out of court; the other is still pending. At the same time, the S.E.C. itself is investigating the possibility that Roosevelt Raceway, of which Mr. Casey became a director in 1967, may have inadequately disclosed to the S.E.C. the fee arrangements it had made with Mr. Casey's law firm. The issue that the Senate Banking Committee faces is not whether Mr. Casey has committed illegal acts--the Senate is not a court of law--but whether in view of the record he can command the highest public respect. The S.E.C. chairmanship is an unusually sensitive and important position, since the man who fills that post stands as the protector of the public interest against those who may succumb to the temptation to cut sharp corners and make a fast dollar, as well as against those who would deliberately practice fraud. No one should be considered for membership on the S.E.C.-or any other regulatory commission, judicial appointment or Cabinet post-who shows any evidence of disregard for the most scrupulously ethical business behavior. No one deserves such a position who has shown insensitivity to problems of conflict of interest or unwillingness to disclose past or present business and tax practices fully and with complete candor. Such are the standards that the Senate must apply in deciding whether Mr. Casey is qualified to serve as chairman of the S.E.C. Obviously, they are standards that should be applied to all other Presidential appointments as well. |