Question

The securities and exchanges commission is headed by a multimember board that includes nominees from the president (who cannot be fired by the president), as well as limits on the number of board members from the same party. This type of leadership structure achieves which of the following?

Answer 1

The leadership structure of the Securities and Exchange Commission, with a multimember board including nominees from the president (who cannot be fired by the president) and limits on the number of board members from the same party, achieves independence and non-partisanship.

Step-by-step explanation:

The design of the Securities and Exchange Commission's leadership structure is intended to ensure independence from political influence and maintain a non-partisan approach. The provision that nominees from the president cannot be fired by the president helps to shield the SEC from direct political interference. Additionally, limiting the number of board members from the same party promotes a balanced and unbiased decision-making process.

This structure is crucial for the SEC, as it deals with regulating and overseeing the securities industry to protect investors, maintain fair and efficient markets, and facilitate capital formation. Independence and non-partisanship are essential for the SEC to fulfill its regulatory responsibilities objectively and without undue influence from political agendas.

In summary, the leadership structure described in the question achieves independence and non-partisanship for the Securities and Exchange Commission, allowing it to effectively carry out its regulatory functions.

Answer 2

This type of leadership structure achieves bipartisan oversight and independence from direct presidential influence.

Step-by-step explanation:

The Securities and Exchange Commission (SEC) is designed to operate with a multi-member board to ensure a bipartisan approach and prevent undue influence from any single political entity. The inclusion of nominees from the president, protected from direct firing by the president, aims to maintain a balance between different ideologies or perspectives, preventing extreme biases.

Additionally, the restriction on the number of board members from the same party ensures a diversified representation within the commission, fostering diverse viewpoints and considerations in regulatory decisions.

The bipartisan composition of the SEC board reduces the likelihood of political pressure from overpowering regulatory decisions. For instance, if there were no constraints on party affiliations or direct presidential influence, decisions might lean heavily toward the current administration's policies, potentially undermining the commission's independence and objectivity.

By having a mixed board with members representing different political viewpoints, the SEC can better serve its role as an independent regulatory body, enhancing investor confidence in the fairness and integrity of the financial markets they oversee.