With Current S.E.C. Muzzled, Former S.E.C. Steps In

Add S.E.C. Chairman Christopher Cox to the long list of Bush appointees to strap on a muzzle when they find themselves at odds with the president.

The securities industry's top cop voted in favor of filing a brief in support of investors in a major case that will be heard by the Supreme Court. The case involves whether or not defrauded investors can sue third parties like accountants and lawyers for their role in the schemes. Its outcome will impact Enron shareholders who are still waiting for the judicial system to help them recover billions in losses.

Cox says yes. Bush says no.

Since the S.E.C. must rely on the U.S. Solicitor General to file on behalf of the administration, and Bush opposed the move last month, the brief was never filed.

The deadline has now passed, but some former S.E.C. officials are still hoping to make an impact on the justices' decision. William Donaldson and Arthur Levitt, both former chairmen of the S.E.C., along with former commissioner Harvey Goldschmid, have asked for permission to file a post-deadline brief in support of investors, according to the Washington Post. The group is bipartisan. Donaldson was a Bush appointee before leaving the post several years ago.

Briefs in support of the corporate defendants in the case filed on behalf of shareholders of Charter Communications are due by August 15. The High Court is expected to hear the case during its next term.

by Megan Barnett