Schapiro Sued Over NYSE, NASD Merger

01-13-2009

Mary L Schapiro, named to head the Securities and Exchange Commission (SEC) under President-elect Barack Obama’s administration, faces two lawsuits for alleged misleading statements meant to hasten the merger of regulatory units of New York Stock Exchange and NASD, The New York Times reports. Schapiro, who will appear at a confirmation hearing of her selection, has been accused of completing the merger, after which she received a 57% pay hike.

Schapiro is the CEO of the merged entity, the Financial Industry Regulatory Authority. She is accused of stating the Internal Revenue Service (IRS) had prohibited NASD from paying each member more than $35,000 as part of the merger deal.

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