1st Cox hearing set for Tuesday

Alicia Robinson

Almost two months after being nominated as the next chairman of the

Securities and Exchange Commission -- and years since his name was

first mentioned for a higher office -- Rep. Chris Cox will step under

the spotlight Tuesday at a confirmation hearing with the U.S.

Senate’s banking committee.

The 10 a.m. hearing is the next step in Cox’s confirmation

process, after he was tabbed by President Bush on June 1 to replace

outgoing commission Chairman William Donaldson.

The full Senate must still vote to confirm Cox, but that likely

won’t happen until after Labor Day, when Congress returns from its

August recess.

Cox, a Republican, has been Newport Beach’s congressman since

1988. News of his possible move to a new post unleashed a storm of

speculations about who will seek to replace him in the House of

Representatives, and more candidates are likely to emerge once he is

confirmed as SEC chairman.

The Senate Committee on Banking, Housing and Urban Affairs will

question Cox along with Annette L. Nazareth and Roel C. Campos, two

Democratic nominees for posts on the commission.

Senate banking committee Chairman Sen. Richard Shelby “will

rigorously examine the qualifications of each nominee,” said Virginia

Davis, a spokeswoman for Shelby.

A spokesman for Cox declined to comment on the hearing.

Banking committee members will look at Cox’s background, which

includes a law degree and an MBA from Harvard and three years as

White House counsel.

He could be asked about legislation he wrote that made it harder

for shareholders to file class-action lawsuits over declines in stock

values, said John Graham, an international business professor at UC

Irvine who has lost three bids for Cox’s Congressional seat.

“He’s passed legislation which has tended to protect [company]

managers as opposed to shareholders, and the SEC’s job is to protect

shareholders,” Graham said.

Graham also pointed out that, over the years, Cox has accepted

corporate contributions, which he described as “donations from folks

that he’s supposed to keep a watch on now.”

Although Cox and California Sen. Barbara Boxer have clashed in the

past, Boxer and Sen. Dianne Feinstein will introduce Cox at Tuesday’s

hearing.

“This is a very important job in the administration. He’s got some

very big shoes to fill,” said David Sandretti, a spokesman for Boxer.

“His predecessor did a great job helping the nation through some of

the biggest corporate scandals in history.”

Once Cox resigns, the governor has 14 days to call a special

election to fill the seat. The general election must be held between

112 and 119 days later, or roughly four months, with a primary held

roughly two months beforehand.

But the vote to replace Cox won’t be held during the governor’s

special election in November -- for that to happen, the confirmation

would have had to take place by July 15, said Orange County Chief

Deputy Registrar of Voters Neal Kelley.

Declared candidates so far are Republicans Marilyn Brewer, a

former Newport Beach Assemblywoman; and state Sen. John Campbell.

Other possible contenders include Democrat John Graham and

Republicans Don Udall and Bob Dornan, a former congressman who has

considered running as an Independent.

* ALICIA ROBINSON covers government and politics. She may be

reached at (714) 966-4626 or by e-mail at

[email protected].