(Reuters) - Former U.S. Securities and Exchange Commission (SEC) chairman Mary Schapiro will join a private consulting firm as a managing director following a tumultuous four years rehabilitating the agency’s battered reputation.
Consulting firm Promontory Financial Group LLC spokeswoman Debra Cope on Tuesday confirmed an earlier report by the Wall Street Journal.
Schapiro stepped down as SEC chairman in December.
When Schapiro took over in 2009, the agency was under fire for regulatory blindspots that critics said helped to fuel the financial crisis. It was also lambasted for failing to catch now-convicted Ponzi schemer Bernard Madoff, whose fraud cost investors an estimated $65 billion.
In addition to shoring up the agency’s name, Schapiro had to fight numerous other fires - from the 2010 “flash crash” that sent the Dow Jones industrial average tumbling 700 points within minutes to high-profile court losses.
In an interview with the Wall Street Journal, Schapiro said she wouldn't go back to government. "After spending 28 of the last 32 years as a regulator, now was the right time to do something different," she said. (link.reuters.com/tuq96t)
Promontory is a strategy, risk management, regulatory, and compliance consulting firm founded in 2001 by Eugene Ludwig, who served as U.S. Comptroller of the Currency under President Clinton.
Reporting by Mridhula Raghavan in Bangalore; Editing by Mark Potter