Can the President Fire the SEC Chair?

[CJJ]

Let’s keep this a strictly factual question. John McCain today said that if he were president he would fire SEC chairman Christopher Cox.

Now, I thought that the President could appoint an SEC chair (confirmed by the Senate), but that a President couldn’t fire him/her like he could, say, fire a cabinet official because the SEC is an independent agency outside of the executive branch. Perhaps though I misunderstand the SEC position…any help?

[mlees]

Not much help: http://www.sec.gov/about/commissioner.shtml

The Securities and Exchange Commission has five Commissioners who are appointed by the President of the United States with the advice and consent of the Senate. Their terms last five years and are staggered so that one Commissioner’s term ends on June 5 of each year. To ensure that the Commission remains non-partisan, no more than three Commissioners may belong to the same political party. The President also designates one of the Commissioners as Chairman, the SEC’s top executive.

Wiki said the same thing, just about verbatim. http://en.wikipedia.org/wiki/SEC_Chair

Neither explicitly state what the removal process is for someone who’s clock hasn’t run out yet.

My WAG: If the President can appoint you, he can unappoint you as well, except for those positions where it is explicitly stated that the appointment is for life, like USSC Justices. I would assume that he would need the consent of Congress, too.

If the President wants to make a scapegoat of someone, it’s possible that Congress would go along with it more often than not.

[friedo]

@mlees

My WAG: If the President can appoint you, he can unappoint you as well, except for those positions where it is explicitly stated that the appointment is for life, like USSC Justices.

I don’t know the answer to the OP, but I wanted to point out that this applies to all federal judges, not just Supreme Court ones.

[MikeS]

@mlees

Not much help: http://www.sec.gov/about/commissioner.shtml

Wiki said the same thing, just about verbatim. http://en.wikipedia.org/wiki/SEC_Chair

Neither explicitly state what the removal process is for someone who’s clock hasn’t run out yet.

The relevant Codes don’t say anything about removal either:

There is hereby established a Securities and Exchange Commission (hereinafter referred to as the “Commission”) to be composed of five commissioners to be appointed by the President by and with the advice and consent of the Senate. Not more than three of such commissioners shall be members of the same political party, and in making appointments members of different political parties shall be appointed alternately as nearly as may be practicable. No commissioner shall engage in any other business, vocation, or employment than that of serving as commissioner, nor shall any commissioner participate, directly or indirectly, in any stock-market operations or transactions of a character subject to regulation by the Commission pursuant to this chapter. Each commissioner shall hold office for a term of five years and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office …

[brickbacon]

No, the president can not fire the SEC chair.

**But while the president nominates and the Senate confirms the SEC chair, a commissioner of an independent regulatory commission cannot be removed by the president.
**
From time to time, presidents have attempted to remove commissioners who have proven “uncooperative.” However, the courts have general upheld the independence of commissioners. In 1935, President Franklin Delano Roosevelt fired a member of the Federal Trade Commission and the Supreme Court ruled the president acted unconstitutionally.

Asked how McCain would fire Cox if the president does not have the formal power to fire the chairman of the Securities and Exchange Commission, the McCain campaign pointed to former SEC Chairman Harvey Pitt who resigned in 2002 when it was made clear to him that he had lost the confidence of the Bush administration.

“Not only is there historical precedent for SEC Chairs to be removed, the President of the United States always reserves the right to request the resignation of an appointee and maintain the customary expectation that it will be delivered,” said McCain spokesperson Tucker Bounds.

So I guess the hope was that he could embarrass him into resigning.

[mlees]

@brickbacon

No, the president can not fire the SEC chair.

So I guess the hope was that he could embarrass him into resigning.

Thanks! Looks like my WAG was wrong. Apologies, everyone.

[CJJ]

I notice today that John McCain (from remarks delivered in Green Bay, WI) stated he would “ask the SEC chairman to resign”, a phrase he used at least twice.

[BrotherCadfael]

Here’s one analysis of the legal issues, from the Volokh Conspiracy.