"I experienced someone sitting across the table from me, saying that she would need $50,000 from me for a candidate who was running for office. I said I wasn't able to do that, and she said, 'Well, then I have to be very frank with you. You are not going to do any business with this particular client.' That got me going."
- David Clapp, April 28, 2011 Fireside Chat - Pay to Play
Two decades ago, the Municipal Securities Rulemaking Board established MSRB Rule G-37, prohibiting brokers, dealer and municipal securities dealers from engaging in municipal securities business with an issuer within two years after a political contribution was made to an elected official of the municipal issuer. Rule G-37 was intended to curb the practice of “pay to play:” acquiring municipal securities business by making campaign contributions to state and municipal officials. The rule was the first to address “pay to play” in the financial industry.
Learn more about “pay to play” in the April 28, 2011 Fireside Chat – Pay to Play, sponsored by MSRB, with David Clapp, retired partner with Goldman Sachs & Company and 1994 MSRB Chairman; and Ronald Stack, Managing Director, Wells Fargo Securities, and 2009 MSRB Chairman.
Hear from some of the women and men who have made and continue to make an impact on the regulation of the capital markets, including recent interviews with:
The virtual museum and archive is copyrighted by the SEC Historical Society. The Society reserves the right to restrict access to or use of the museum by any user at any time.
Users are prohibited from sharing or downloading any material for publication or commercial purposes without written permission from the Executive Director. Requests for permission must be submitted by email and specify the material requested and for what purpose.
Material used with the Society's permission should be credited to: www.sechistorical.org.