2007-2008 All-Republican SEC During Financial Crisis
When Democratic commissioners Roel Campos and Annette Nazareth departed without replacement, the SEC operated with only three Republican commissioners—Paul Atkins, Kathleen Casey, and Chair Christopher Cox. This coincided with the worst financial crisis since the Great Depression. The undermanned, ideologically uniform commission faced criticism for missing warning signs at Bear Stearns and Lehman Brothers.
Democratic Senate blocked further Republican appointments until Obama took office.
Episode reinforced norm that partisan balance matters for regulatory legitimacy during crises.
Current all-Republican SEC faces similar legitimacy questions if crypto markets crash during its watch.
