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LAWCROSSING FEATURED EMPLOYER OF THE WEEK
Securities and Exchange Commission [Marty Schultz-Akerson] This week, we take a break from examining law firms, per se, and instead look at a huge government agency that employs about 1,500 attorneys. The SEC has an interesting history and modern attitude toward new technologies, all of which adds up to an exciting place to practice.
Although the layperson might think of the
Although many of the foundational laws of
two possible violations of SEC violations. The
Securities and Exchange Commission as
the SEC were passed by 1940, recent ad-
first involved the improper issuance of stocks
primarily an employer of accountants and
ditions serve as a useful indication of the
to its employees. The second, not without
economists, nearly half of the agency’s 3,000
agency’s attempt to keep pace with innova-
irony, came with the release of an interview
employees are lawyers. The SEC celebrates
tions and present challenges in the areas of
Google’s founders had done with Playboy
its 70th anniversary this year with a heavy
investment and business. For example, the
magazine that some believed violated an SEC
docket of nationally publicized cases and af-
Sarbanes-Oxley Act, which President Bush
rule mandating a quiet period before an IPO.
ter the recent attention to white-collar crime,
signed in 2002, was created in response to
a reaffirmed mission of safeguarding inves-
mounting concerns over corporate scandals
tors in the vibrant but potentially vulnerable
most famously exemplified by Enron and
ment in the securities markets translates
U.S. securities market.
WorldCom. Perhaps the most significant
into the need for lawyers with a diverse set
change to securities laws since the New
of skills and specialties. The main legal divi-
The SEC’s widespread and complex involve-
Five commissioners who are appointed by
Deal, Sarbanes-Oxley places even stronger
sions of the SEC workforce are: enforcement,
the President of the United States govern the
emphasis on proper disclosure of informa-
corporation finance, market regulation,
SEC. To ensure a non-partisan stance, no
tion to investors and the enforcement of
investment management, general counsel,
more that three commissioners can hail from
codes of professional ethics for executives.
compliance inspections and examinations,
the same political party, and their appoint-
In addition to white-collar crime, technologi-
and international affairs. While some SEC
ments are staggered so that every year one
cal advances in investing (such as on-line
lawyers may dedicate their time to the
commissioner steps down, making room for
trading) and the globalization of the market
investigation and litigation of securities fraud
a new perspective. Although the SEC keeps
stand as current challenges for the SEC.
claims, others might focus on analyzing disclosure statements, creating new SEC rules,
its headquarters in Washington, DC, it also houses 12 regional offices in financial hubs
Lawyers at the SEC often work on cases that
or interacting with regulatory counterparts
across the country.
involve some of the most prominent corpora-
abroad. Across the board, SEC lawyers work
tions and business leaders in the world.
closely with accountants, economist, finan-
Investors of the Roaring 20s and previous
Recently, Halliburton agreed to pay $7.5
cial analysts, and other professionals in the
generations placed little credence in the idea
million in fines to resolve a claim brought by
securities industry.
of stringent securities regulation, and it was
the SEC. Allegedly, the company, which was
not until Black Thursday brought the world
headed by Vice President Dick Cheney at the
With opportunities ranging from entry-level
of high finance to its knees that the forma-
time, neglected to announce the implemen-
law clerk to supervisory attorneys, the SEC
tion of the SEC became a reality. In response
tation of a change to its accounting process
has something to offer legal professionals
to the stock market crash of 1929, Congress
that resulted in a 46% overstatement of its
at all stages of their careers. While straight
first passed the Securities Act of 1933, which
pre-tax revenue.
monetary compensation falls below the top market rate in the private practice, a highly
requires the disclosure of information to investors and outlaws securities fraud. One
The SEC also affects business practices
competitive benefits package, flexible work
year later, the Securities Exchange Act of
indirectly, as exemplified by the tension-
hours, and other intangibles provided by a
1934 gave birth to the SEC, which has since
filled weeks before Google’s landmark IPO
government post counterbalance any short-
fought off the prospect of a second Great De-
in August 2004. Although the SEC did not
comings there may be in salary. In short,
pression as the nation’s premiere securities
bring any charges against Google, the mere
lawyers with a particular flair for finance
law-enforcement agency.
threat of its presence led Google to disclose
and investment or who are simply seek-
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LAWCROSSING FEATURED EMPLOYER OF THE WEEK
ing a stimulating alternative to the private practice, might find their ideal job at the Securities and Exchange Commission.
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