Ranking Member Emerson Opening Statement

House Appropriations Financial Services Subcommittee

Hearing on the Securities Exchange Commission (SEC)

March 11, 2009

Thank you Mr. Chairman. Since this is our first hearing, I would like to say for the record, that it is an honor to be the Ranking Member of this Subcommittee, especially during such a trying economic time. The Subcommittee has jurisdiction over a diverse group of agencies, many of which have a profound impact on American’s lives and the financial stability of our economy. I look forward to working cooperatively with you during this Congress and finding ways to improve the operations of the Federal government and the workings of our economy, as well as help all Americans through this economic crisis.

Chairman Schaprio, welcome and congratulations on your confirmation. As Chairman Serrano has described, our current economic crisis has left our markets in turmoil losing trillions of dollars in value, hurting every segment of our economy including family savings, small business, and retirement and pensions funds. So you have a very challenging task in front of you to improve transparency in our securities markets, and to uncover fraud and deception while not over-regulating our markets and hindering economic recovery. I look forward to working with you and the Chairman to ensure that you have the tools and resources you need to ensure investors are protected and that markets are functioning properly.

However, I must point out that since the failure of companies such as Enron, Global Crossing, and Arthur Anderson, the Congress provided the SEC with additional regulatory tools with the enactment of the Sarbanes-Oxley legislation and has more than doubled the SEC’s annual appropriation. So it is difficult to understand how the SEC was not better positioned to deal with our current economic turmoil and how the SEC allowed the Madoff scandal to continue for many years.

I want to be helpful to you and provide the SEC with the tools and resources that you believe are needed, but I will also want some assurances that the resources you have and any additional resources you may receive will be effectively utilized.

Once again, welcome and I look forward your testimony.

Thank you, Mr. Chairman.