Cox named SEC chairman

Alicia Robinson

After 17 years as Newport Beach’s congressman, Rep. Chris Cox on

Thursday was appointed by President Bush to head the federal

Securities and Exchange Commission.

Current SEC Chairman William H. Donaldson on Wednesday announced

that he will leave June 30. Cox, 52, still must be confirmed by the

Senate, but political observers don’t foresee difficulties there.

The appointment was unexpected, although Cox has been mentioned

before as a candidate for high-level positions including CIA director

and a judgeship on the U.S. 9th Circuit Court of Appeals.

When announcing the nomination Thursday morning, Bush praised Cox

for his work as leader of the House Homeland Security Committee and

his financial initiatives, such as working to permanently end the

estate tax and writing a bill banning taxes on Internet commerce.

“In the years ahead, Chris will vigorously enforce the rules and

laws that guarantee honesty and transparency in our markets and

corporate boardrooms,” Bush said.

Cox could not be reached for comment Thursday. A spokesman said

presidential appointees typically don’t discuss their new posts

before being confirmed by the Senate.

Before starting his career in Congress, Cox was a lawyer in the

Reagan White House. He holds an MBA from Harvard.

Local politicos were surprised by the SEC appointment but said Cox

is well suited to the job.

“There were absolutely no rumors whatsoever,” state Sen. John

Campbell said. “It was just amazing. There’s been rumors of Chris Cox

getting some appointment just about every year for as long as I can

remember.”

After so many previous flirtations with higher office, Cox may

finally make it to one, but it’s hard to pin down what’s different

this time.

“My sense is he’s been ready to leave, and he’s been looking for

the right opportunity,” UC Irvine political scientist Louis DeSipio

said. “This is sort of his opportunity to establish a new set of

credentials for himself.”

Being on the national stage as head of a federal agency could

broaden Cox’s ability to raise money, which he’ll need if he makes a

bid for the U.S. Senate, DeSipio said. Cox’s interest in a Senate run

has been rumored before, and Republicans would love to wrest one of

the state’s two seats from Democratic control.

Earlier, Cox withdrew from the appeals court bid when faced with a

contentious confirmation, and it’s unclear whether he’ll face much

opposition in Senate confirmation hearings for the SEC post.

California Sen. Barbara Boxer, who could not be reached for

comment Thursday, helped scuttle Cox’s bid for the appeals court

judgeship.

Sen. Dianne Feinstein has agreed to introduce Cox at Senate

committee hearings but hasn’t officially endorsed him.

“I have no reason to oppose him, and I believe he’s qualified to

do the job,” Feinstein said in a statement.

But Cox does have at least one vocal critic. UC Irvine

international business professor John Graham, a Democrat who has

unsuccessfully run against Cox three times, said it’s amazing to him

that Cox is being made the top business regulator, after spending his

congressional career trying to dismantle federal regulations that

govern business.

“Chris Cox has never been scrutinized by the press.... The press

just hasn’t been interested, because it hasn’t been a contested

race,” Graham said. “Now people are going to ask tough questions.”

* ALICIA ROBINSON covers government and politics. She

may be reached at (714) 966-4626

or by e-mail at alicia.robinson @latimes.com.