A New Chief for the Securities and Exchange Commission
I’m Gwen Outen with the VOA Special English Economics Report.
The Securities and Exchange Commission in Washington was created in nineteen thirty-four to protect investors. The S.E.C. enforces laws and rules that govern financial markets. Last week, its chairman, William Donaldson, announced that he will resign at the end of June.
President Bush quickly named a replacement for approval by the Senate. He nominated California Representative Christopher Cox. The president calls him "a champion of the free-enterprise system." He also says Mister Cox "knows that a free economy is built on trust."
Mister Cox has strong support from business groups. He supported legislation, for example, to make it more difficult for investors to bring legal actions against companies. Mister Cox was first elected to Congress in nineteen eighty-eight.
William Donaldson is a former chairman of the New York Stock Exchange. He became chairman of the Securities and Exchange Commission in February of two thousand three. At that time, public trust in the markets had been weakened. Big companies like the energy trader Enron had cheated investors.
The commission had to develop rules to meet new requirements from Congress. Congress passed the Sarbanes-Oxley Act of two thousand two. The law added responsibilities for top officials of companies that sell stock publicly.
Now, chief executives and chief financial officers must confirm financial results. Companies must have controls to protect against mistakes and wrongdoing.
Another rule requires investors to receive the best stock price possible. The agency has also increased rules on mutual funds and hedge funds.
Mutual funds make many different investments. Mutual funds often pay other companies to supervise their investments. The agency acted to require that most top officials of such funds be independent of the management company.
Hedge funds are similar to mutual funds, but are designed for big investors. Advisers to large hedge funds will now have to be known to the S.E.C.
The five-member commission has two Democrats and three Republicans, including Mister Donaldson. Critics of the chairman said his actions were often too restrictive on business. Yet Mister Donaldson says the last two and one-half years may well be remembered as the most productive period in the agency's history.
This VOA Special English Economics Report was written by Mario Ritter. Our reports are on the Web at voaspecialenglish.com. I'm Gwen Outen.
When was The Securities and Exchange Commission in Washington created?In nineteen thirty-four
How many members are there in commission? five
Where was The Securities and Exchange Commission created?In Washington
What was the Securities and Exchange Commission in Washington created for?To protect investors
The S.E.C.... laws and rules that govern financial markets.Enforces
When was The Securities and Exchange Commission in Washington created?In nineteen thirty-four
What laws and rules does the S.E.C. enforce?Laws and rules to govern financial markets
What is the name of the new chairman?William Donaldson
How does the president call Christopher Cox?"a champion of the free-enterprise"
Who does Mister Cox has have strong support from?business groups
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'AGFLATION' RAISES GRAIN PRICES, BUT NOT CORN ETHANOL This is the VOA Special English Economics Report.
Right now, many people around the world are feeling the pain of «agflation.» Agricultural inflation has been hitting the price of grains and other products. Food prices have risen under pressure from energy costs and growing world demand for food, as well as local problems like the weather. In the United States, grain prices are reaching historic highs. And supplies have dropped to lows not seen since the nineteen seventies. For one of America's leading crops, the growing use of corn to make fuel has driven up the price. The government has strongly supported ethanol production. In two thousand five, Congress set a national goal of using twenty-eight billion liters of ethanol a year by two thousand twelve. President Bush and Congress have since expanded that goal. As a result, farmers are planting more corn. But more hectares of maize for ethanol mean fewer hectares for crops like soybeans. Meat producers now have to pay more for soybeans because there is less available for animal feed. This is how corn-based ethanol affects the price of meat products. Rising grain prices could signal a change for agricultural commodities around the world. For years, developing countries have opposed government support for farmers in wealthy nations. They make the case that farm subsidies drive down prices for agricultural products, hurting poor farmers. Subsidies have been one of the major disputes limiting progress in the Doha development round of world trade talks. Now, there is worry that the increasing demand for food could drive prices too high, hurting the buying power of the world's poor. Many developing countries have a growing middle class. More people than ever have money to buy high-value agricultural products like meat and milk. In China, for example, Premier Wen Jiabao has called for increased milk production. More milking cows means the need for more feed. Yet prices are not rising for all agriculture- based products. In the United States, while the price of corn remains high, it has not affected ethanol prices. In fact, in recent months, those prices have dropped about thirty percent. Production has expanded faster than demand, so now there is a big oversupply of ethanol. And that's the VOA Special English Economics Report, written by Mario Ritter. Transcripts and archives of our broadcasts are at voaspecialenglish.com. I'm Steve Ember.
Agricultural inflation has been hitting the price of... .grains and other products
Congress set a national goal of using twenty-eight billion liters of ethanol a year by...two thousand twelve
More hectares of maize for ethanol mean fewer hectares for crops like .... soybeans
Rising grain prices could signal a change for agricultural commodities around the ... region
The government has strongly supported ... production.ethanol
What is Wen Jiabao?Premier
What pain are many people around the world feeling right now?the pain of "agflation"
What pain are many people around the world feeling right now?the pain of "agflation"
When did Congress set a national goal of using twenty-eight billion liters of ethanol a year by two thousand twelve?In two thousand five
Who has strongly supported ethanol production?the government
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