Positive Political Theory and Federal Usurpation of the Regulation of Corporate Governance: The Coming Preemption of the Martin Act

Abstract

This Article is about the Securities and Exchange Commission (SEC) as a political entity. The basic story is that the SEC, like other administrative agencies, is a creature of the political system, and, as such, responds in varying ways to political pressure. From this starting point, I observe that the SEC is no exception among regulatory agencies in having a keen interest in maximizing its own power and prestige. As such, the SEC is responsive to political pressures.