Securities and Exchange Commission Historical Society

The Open Door: Roles of Women in Securities Regulation

Just as Bright and Just as Capable: 1980s and 1990s



“Linda Quinn – how could you not be inspired by someone like that? She was the big picture woman. She was absolutely amazing at stepping back and saying, ‘This is the important thing. This is how this pattern of law works.’ So incredibly bright.”

- February 4, 2008 Interview with Sara Hanks

“Linda [Quinn] was a force of nature: very strong persona, and intellectually, one of the most creative, impressive, forward-looking people I have ever worked with in my whole life.”

- May 9, 2014 Interview with Elisse Walter

When Linda Quinn died in 2003, she was remembered as “the most important regulator and authority on securities regulation in the last 25 years,” and as “my most trusted advisor” by former SEC Chairman Arthur Levitt. She served as Chief of Staff to SEC Chairman John Shad, and for a decade as Director of the Division of Corporation Finance. While she was the first woman to head Corporation Finance, nowhere in her obituary was she cited for her gender.29

While heading a division within the agency was a powerful sign to those within and working with the U.S. Securities and Exchange Commission, for the public, the visible “top” woman in securities regulation was the sole female SEC Commissioner. After Roberta Karmel stepped down in 1980, her seat was filled by equally bright and capable women - Barbara Thomas (later Lady Judge), Aulana Peters, Mary Schapiro and Laura Unger – but only one woman served on the Commission at a time during these decades.

“I remembered when [Roberta Karmel] was appointed [SEC Commissioner]; I remembered thinking, ‘What a lucky girl. That would be a great job.’ And that her credentials weren’t all that different from mine.”

- November 13, 2005 Interview with Lady Barbara S. Thomas Judge

“Aulana Peters was one of the Commissioners, so she was a very interesting role model to watch. She was energetic, passionate about securities law and regulation and what she did, and she had a sense of humor.”

- September 23, 2013 Interview with Emily Gordy

“I was raised to anticipate people not always being in my corner because of my race or my gender, and I certainly worked hard to be sure that my performance left no doubt in anyone’s mind that I was highly qualified, maybe super-qualified.”

- November 7, 2005 Interview with Aulana Peters

“The SEC had a vacancy, and here were the criteria. They wanted a woman, because there’d always been a woman – or at least there had been three other women at the SEC – never more than one at a time. They wanted a woman to replace Aulana Peters, who was leaving. There were already three Republicans on the Commission at the time, so they had to have, because of the requirements that no more than three of the same political party populate the Commission, somebody who was not a Republican. I’m an Independent. And they wanted somebody with a derivatives background. So, if those were the three criteria, there probably weren’t a whole lot of people in the world who were women, non-Republican – and preferably not a Democrat, with a background in derivatives. So I fit the bill for the White House.”

- November 2, 2005 Interview with Mary Schapiro

When Barbara Thomas retired in 1983, she wrote to President Reagan, recommending “capable people to fill the vacancy on the Commission,” noting that “each of these individuals has distinctive talents and experience that I believe would be of great value.”  All of her candidates were women; none were selected, but her list highlighted the advances that women had made in securities regulation.30

At the NASD, Ruth Block, of The Equitable Life Assurance Society of the United States, joined the NASD Board of Governors in 1981, followed in 1985 by Judith Shepard (later Belash) of Goldman, Sachs & Co. In 1989, while the Board of Governors no longer had a woman member, Cynthia Orcutt, Sun Investment Services Company, served as chairman of the District 13 Committee and as a member of the national Variable Contracts Committee.31 NASD made history in 1996 when Mary Alice Brophy, director of compliance at Dain Bosworth in Minneapolis, became the first woman to chair the Board of Governors, having served on the Board since 1993.32

“Mary Schapiro was brought on to head up the regulatory organization. I still remember to this day her coming and speaking to us in our Rockville offices and she was new to the organization. She was a woman, she was a leader and she was also pregnant, and that was very influential for a young woman who was starting her career in the industry.”

- July 24, 2014 Stacy Chittick, Opening the Door: Roles of Women in Securities Regulation

“I owe a lot of my career to Mary Schapiro because she supported me through everything that I did. But Mary was the type of person who was supportive of all her employees, whether you were a man or a woman.”

- October 4, 2013 Interview with Barbara Sweeney

In the same year as Brophy’s appointment, NASD Regulation, Inc. was established and former SEC Commissioner Mary Schapiro was named as President. Women now occupied the top two positions in the self-regulatory organization. The NASD Regulation leadership team also included Elisse Walter as Chief Executive Officer, Linda Fienberg as Executive Vice President, and Deborah Masucci as Vice President of the Office of Dispute Resolution. Barbara Sweeney soon was appointed head of NASD’s Central Registration Depository.33

Women professionals were important in serving as mentors for both new male and female staff in securities regulation:

“I give great credit to Joan McKown for making sure that the regions felt that they were important and that their cases were important. Joan was a chief counsel for the Division of Enforcement for many of the years that I was at the SEC, and her attention to the regional office cases and her feedback was great.”

- October 7, 2013 Interview with Katherine Addleman

“It was my good fortune to be assigned to one of the best of the branches [in the Division of Corporation Finance]. It was headed by Ernestine Zipoy, an accountant by training who combined a sharp intellect with a peppery ‘can do’ personality.  Unlike many Branch Chiefs, Ernestine believed in assigning meaningful work to the new members of her branch from the outset.”

- February 20, 2014 Statement – Peter J. Romeo

At whatever staff level, women faced issues in the workplace that men most likely did not experience, such as the practical issue of juggling work and family obligations:

“We had jobs and we had babies and we did not have a lot of time to be having lunch and discussing what it was like to try to get balance in our lives. There was no balance in our lives, and that was just a given.”

- October 31, 2013 Interview with Therese Pritchard

“There were no supports for our dealing with the very real need of looking after our families. I had to leave at 5:30 every day. That had an impact on selection for assignments. I was always keeping my head down when something was going to be out of town for a while. I didn’t want to do that. I think that there was more of an issue than ‘Oh, she’s a woman, she can’t do the work.’ I never got that.”

- June 16, 2011 Interview with Marianne Smythe

“Many a time I would come in on my day off. If something needs to be done, it has to get done and it has always been important to me to never let part-time status get in the way of getting a job done right and on time. But when you’re part-time, you’ve got to accept the fact that there will be certain promotions you either won’t be able to take or won’t be offered to you, and that’s unfortunately a fact of life.”

- October 17, 2013 Interview with Angela Goelzer

But there were workplace challenges beyond balancing work and family life. Being a woman in a financial regulatory agency – either as a professional or as support staff - meant that, at times, one might experience not being taken seriously, not considered for a work assignment, or even unprofessional harassment:

“I remember going to a [NASD] member firm, a small broker-dealer. When I asked for his bank statements and bank reconciliations, the response I got was, ‘My wife doesn’t see this information, so why should I show it to you?’ I’m pretty certain if it was a male examiner on the other side of the table, it would have been a very different dialogue.”

- September 9, 2013 Interview with Grace Vogel

“We had a training program at the SEC, and I would always stop and say, ‘Here’s a message for the women in the audience. There are men who are not going to take you that seriously and who are going to think you don’t get what they’re talking about. Go with it, because at the end of the day it’s whether you win or lose that counts here.’ I used an example of a man who was saying something to me, and I said ‘I don’t understand,’ and he said, ‘That’s because you don’t understand business.’ I said, ‘Okay, you may be right, please explain it to me,’ and he basically admitted to a violation to the securities law.”

- October 31, 2013 Interview with Therese Pritchard

“There was concern and reluctance to send women out with men to investigate cases into remote rural parts of the country. I remember that in the Atlanta Regional Office, they were reluctant to hire female securities investigators and financial analysts because there were several investment advisors who were sole proprietors – one-person shops who did business out of the bedroom of their homes. The Commission did not want to have to send a woman into the bedroom of someone’s home to look at his or her books and records. It was not a matter of prejudice, as much as a matter of being protective, that more women were not hired at the outset.”

- August 13, 2003 Interview with James Foster

“I was administrative aide at that time in Enforcement. There were times that [the Division Director] was very demanding, very intimidating. He wanted me to go into the Xerox room and get on my hands and knees and pick up staples out of the carpet, and I said, ‘There’s no way.’ I told him, ‘I’m not getting on my hands and knees or crawling around looking for staples. I will call Facilities; they’ll send someone up and they will pick them up and clean it up.’ ‘I want it done right now,’ he said. Well, I told him, ‘I’m sorry, I am not going to do it.’ I left, and the next thing I knew the administrative officer was in there on her hands and knees picking them up.”

- November 12, 2013 Interview with Beverly Fleming

In 1988, the SEC faced one of its biggest challenges to equality in the workplace.  Catherine Broderick, a staff attorney in the SEC’s Washington Regional Office, filed suit alleging a sexually hostile work environment at the office and retaliation from her supervisors when she protested. The court found that, in this particular case, a work environment consisting of pervasive sexual conduct in the office existed and affected “the motivation and work performance of those who found such conduct repugnant and offensive.”34 It further found that Broderick established a case of unlawful retaliation for her complaints, as evidenced by adverse performance evaluations and threats of employment termination. She was awarded a raise in pay grade and a transfer to the Office of General Counsel.35 In the aftermath of the case, the SEC conducted an internal review of its policies and practices.36

The 20th century ended with women now in leadership and senior positions in securities regulation, and gaining authority and stature in the fields of law, finance and accounting. The first decade of the 21st century would see women rise to the top, achieving leadership positions that had heretofore been exclusively male.


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Footnotes:

(29) Kenneth N. Gilpin, “Linda C. Quinn, 55, a Lawyer Who Oversaw S.E.C. Regulation,” The New York Times, November 14, 2003.

(30) July 28, 1983 Letter to President Ronald Reagan from Barbara S. Thomas

(31) 1981 NASD Annual Report; 1985 NASD Annual Report; 1989 NASD Annual Report

(32) “Suddenly, it’s a woman taking helm of NASD Brophy is described as surprised to get post that only men have held.” Baltimore Sun, December 10, 1995.

(33) August 1996 NASD Neutral Corner; March 1999 NASD Regulation CRD (Central Registration Depository) Public Disclosure Bulletin

(34) Broderick v. Ruder, 685 F.Supp. 1269, 1278 (D.D.C 1988).

(35) In 2002, Catherine Broderick brought an action claiming retaliation for her original lawsuit and alleging that the U.S. Securities and Exchange Commission was in contempt of the 1988 court order. Her main complaint was that she was not hired for a supervisory position as senior litigation counsel and represented a retaliation for her previous lawsuit against the SEC. She demonstrated that she had received high performance appraisals and was qualified for the supervisory positions. The District Court found that she had not shown a prima facie case of retaliation, and the denial of supervisor positions related to non-discriminatory factors. Broderick v. Donaldson, 338 F.Supp.2d30, 48 (D.D.C. 2004).

(36) The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 required financial regulatory agencies to establish an Office of Minority and Women Inclusion. The SEC established its office in 2011, with responsibility for all matters related to diversity in management, employment and business activities.

Related Museum Resources

Papers

1967-1999
image pdf (Courtesy of James H. Perry)
July 29, 1980
image pdf (Courtesy of Jimmy Carter Presidential Library)
August 12, 1980
transcript pdf (Courtesy of National Archives and Records Administration)
1981
NASD Annual Report

(Courtesy of FINRA)

February 16, 1982
document pdf (Courtesy of David B.H. Martin, Jr.)
February 16, 1983
document pdf (Courtesy of David B.H. Martin, Jr.)
February 28, 1983
image pdf (Courtesy of David B.H. Martin)
February 28, 1983
image pdf (Courtesy of David B.H. Martin)
February 28, 1983
image pdf (Courtesy of David B.H. Martin)
February 28, 1983
image pdf (Courtesy of David B.H. Martin)
March 1, 1983
image pdf (Courtesy of David B.H. Martin)
March 1, 1983
image pdf (Courtesy of David B.H. Martin)
March 2, 1983
image pdf (Courtesy of David B.H. Martin)
March 3, 1983
image pdf (Courtesy of David B.H. Martin)
March 4, 1983
image pdf (Courtesy of David B.H. Martin)
March 4, 1983
image pdf (Courtesy of David B.H. Martin)
March 7, 1983
image pdf (Courtesy of David B.H. Martin)
March 7, 1983
image pdf (Courtesy of David B.H. Martin)
March 8, 1983
image pdf (Courtesy of David B.H. Martin)
April 29, 1983
document pdf (Courtesy of Barbara Thomas Judge)
June 1, 1983
image pdf (Courtesy of David B.H. Martin)
June 15, 1983
image pdf (Courtesy of David B.H. Martin)
July 28, 1983
image pdf (Courtesy of the Ronald Reagan Presidential Library)
November 1983
image pdf (Courtesy of John Huber)
1984
image pdf (Courtesy FINRA)
March 13, 1984
image pdf (Courtesy of David B.H. Martin)
March 16, 1984
image pdf (Courtesy of David B.H. Martin)
May 1984
document pdf (Courtesy of Theodore Levine)
June 29, 1984
image pdf (Courtesy of Morton Koeppel)
July 11, 1984
image pdf (Courtesy of David B.H. Martin)
August 8, 1984
image pdf (Courtesy of David B.H. Martin)
October 10, 1984
image pdf (Courtesy of John Huber)
November 13, 1984
image pdf (Courtesy of David B.H. Martin)
1985
image pdf (Courtesy FINRA)
January 23, 1985
image pdf (Courtesy of John Huber)
January 30, 1985
image pdf (Courtesy of David B.H. Martin)
February 8, 1985
transcript pdf (Courtesy of John Huber)
April 30, 1985
image pdf (Courtesy of John Huber)
June 20, 1985
image pdf (Courtesy of David B.H. Martin)
January 9, 1986
image pdf (Courtesy of John Huber)
July 22, 1986
image pdf (Anonymous)
March 4, 1988
transcript pdf (Courtesy of National Archives and Records Administration)
April 5, 1988
transcript pdf (Courtesy of National Archives and Records Administration)
July 8, 1988
transcript pdf (Courtesy of an anonymous donor)
1989
image pdf (Courtesy FINRA)
April 28, 1989
transcript pdf (Courtesy National Archives and Records Administration)
March 3, 1992
image pdf (Courtesy of National Archives)
July 16, 1992
transcript pdf (Anonymous)
January 4, 1993
image pdf (Courtesy of National Archives)
March 4, 1993
image pdf (Anonymous)
May 24, 1993
transcript pdf (Courtesy National Archives and Records Administration)
November 1993
image pdf (Courtesy of FINRA)
June 1994
document pdf (Courtesy of Richard Rowe)
June 24, 1994
image pdf (Anonymous)
September 1994
SEC Telephone Directory

(Courtesy of Morton Koeppel)

1996
image pdf (Courtesy FINRA)
January 1996
image pdf (Courtesy FINRA)
August 1996
image pdf (Courtesy FINRA)
April 1997
image pdf (Courtesy FINRA)
July 16, 1997
transcript pdf (Anonymous)
March 1999
image pdf (Courtesy FINRA)
February 3, 2006
document pdf
February 3, 2006
document pdf

Photos

November 6, 1981

Barbara S. Thomas, Philip A. Loomis, Jr., John S. R. Shad, John R. Evans and Bevis Longstreth

1984
1986
1986

Joseph A. Grundfest, Charles C. Cox, John S.R. Shad, Aulana L. Peters and Edward H. Fleischman

November 1989

Mary L. Schapiro, Joseph A. Grundfest, Richard C. Breeden and Edward Fleischman

1990s

Associate General Counsel, SEC Office of General Counsel

1990

Philip R. Lochner, Jr., Edward H. Fleischman, Richard C. Breeden and Mary L. Schapiro

Early 1990s

James Doty, Barbara Greene, Richard C. Breeden, Linda Quinn and Michael Mann

(Courtesy of Michael Mann )
1991

Philip R. Lochner, Edward H. Fleischman, Richard C. Breeden, Mary L. Schapiro and Richard Y. Roberts

December 12, 1995

(seated) Steven Wallman and Arthur Levitt; (standing, left to right) Victor Tynes, Nancy Smith, Paul Maco, Michael Mann, William McLucas, Linda Quinn, Barry Barbash, Simon Lorne, James McConnell, Carrie Dwyer, Lori Richards, Walter Stachnik, Michael Schlein, Michael Sutton, Jonathan Katz, Richard Lindsey and Richard Walker

1999

Paul R. Carey, Norman S. Johnson, Arthur Levitt, Isaac C. Hunt, Jr. and Laura S. Unger

March 21, 2002
2005
June 14, 2005
April 4, 2006
September 18, 2007
May 20, 2008
June 6, 2013

The Anatomy of Securities Regulation

July 24, 2014

Opening the Door: Roles of Women in Securities Regulation

July 24, 2014

Opening the Door: Roles of Women in Securities Regulation

Oral Histories

27 June 2013

Meredith Cross

08 April 2009

Anne Flannery

12 November 2013

Beverly Fleming

06 July 2012

Kathryn Fulton

17 October 2013

Angela Goelzer

15 April 2013

Amy Goodman

04 February 2008

Sara Hanks

13 November 2005

Barbara Thomas Judge

07 November 2005

Aulana Peters

31 October 2013

Therese Pritchard

02 November 2005

Mary Schapiro

17 September 2013

Cecile Srodes

04 October 2013

Barbara Sweeney

07 November 2005

Laura Unger

09 September 2013

Grace Vogel

09 May 2014

Elisse Walter

Galleries

The Institution of Experience – Self-Regulatory Organizations in the Securities Industry
The Imperial SEC? Foreign Policy and the Internationalization of the Securities Markets, 1934-1990

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