According to a story by Zachary A. Goldfarb in today’s Washington Post Board of Directors at financial firms might wish to take heed. Taylor reports the new head of the SEC, Mary Schapiro, plans to have the agency investigate whether the boards,
of banks and other financial firms conducted effective oversight leading up to the financial crisis…
… As she examines what went wrong, Schapiro is also considering asking boards to disclose more about directors’ backgrounds and skills, specifically how much they know about managing risk…
We are finally about to see real pressure on boards to perform their duties rather than rubber stamp management’s plans. Time will tell if Schapiro and the SEC can make some real changes specifically with regard to how boards carry out their responsibilities. I think with time the SEC will make some real changes.
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