Cox in journalists’ corner

Physically speaking, Securities and Exchange Commission Chairman Chris Cox is taking it easy after his recent surgery. But politically, he’s grabbed a new tiger’s tail ? his agency’s policy on subpoenas of journalists.

Cox was Newport Beach’s congressman for 17 years before being named to the SEC post in mid-2005. In late February, news agencies including the Associated Press reported the SEC had subpoenaed TheStreet.com and writers for Dow Jones online publications while investigating allegations of stock manipulation. Cox said he hadn’t been aware of the subpoenas issued by the commission’s enforcement division and called for creation of a policy to handle subpoenas of journalists, according to news reports.

In an interview this week, Cox said he couldn’t discuss the ongoing investigation that led to the subpoenas, but he said such subpoenas are rare and will remain so.

“It’s my strong belief that the agency should explore all other avenues for acquiring investigative information before intruding on the work of journalists,” Cox said. “That’s because the mission of the SEC and the mission of financial journalists are complementary.”

The commission tries to ensure that public companies disclose financial information, but aggressive investigative journalism also helps expose corporate wrongdoing, Cox said.

“We want to be sure nothing the agency does chills that legitimate activity,” he said.

After a closed-door meeting last week, the commission unanimously decided to adopt a formal policy on subpoenas of journalists, likely within the next two weeks, Cox said.

WELL RECEIVED

Despite complaints from some in the GOP about Gov. Arnold Schwarzenegger’s performance, he was welcomed warmly at a Monday lunch in Newport Beach with some of his strongest backers, members of the Orange County-based New Majority.

“It was a thank-you event for everything that we have done for him from the beginning,” said Tom Tucker, the New Majority’s founding chairman.

The governor talked for about 45 minutes without notes, leaving Tucker with “a very good feeling” about him. Schwarzenegger discussed the failure of the Nov. 2005 ballot initiatives, immigration reform, and the need for improvements to bridges, levees, highways and schools, but he didn’t get into specifics of his multi-billion-dollar infrastructure bond proposal, Tucker said.

“I think that he just shared his real feelings. It wasn’t a typical stump speech by any stretch of the imagination,” Tucker said.

The lunch was one of two stops the governor had scheduled in the area this week, but he backed out of a Wednesday engagement for cocktails with the Orange County chapter of the Lincoln Club. It would have been his first formal meeting with the group since he was elected.

Club President Richard Wagner harbored no hard feelings. He said the governor needed to stay in Sacramento to negotiate with the Legislature so he can get his infrastructure bond proposal on the June ballot.

“Basically he tentatively agreed to make it up to us more or less, I guess, by attending our annual dinner,” but the date hasn’t been set, Wagner said.

SPENDING OUT THE WAZOO

While the governor gets ready to raise money for his reelection bid, funds have already been pouring into ? and out of ? the GOP campaigns for the one of the hottest open seats in Orange County. Since Jan. 1, the two Republican candidates for the 35th District state Senate seat have spent more than $350,000 on the race, according to campaign finance data filed last week with the Secretary of State’s office.

The bulk of it has come from Dana Point City Councilwoman Diane Harkey, who has aggressively challenged opponent Tom Harman, a Huntington Beach assemblyman, on his home turf and has stuffed voters’ mailboxes in an attempt to overcome Harman’s name recognition.

Harkey’s report showed between Jan. 1 and Feb. 25 she raised about $207,000 and spent $307,000. She had nearly $82,000 in cash left at the end of the reporting period but has since claimed a few late contributions and added $100,000 of her own to what she’s already given the campaign.

During the period, Harman reported raising close to $326,000, much of which was moved over from an earlier campaign account. He spent less than $52,000 and had $274,000 left in cash. He also has listed a few late contributions.

A special primary election for the 35th Senate District will be held April 11. The seat has been vacant since December, when then-Sen. John Campbell was elected to a U.S. House seat.dpt.09-chriscox-CPhotoInfoRG1OOFNI20060309ivu45bknDOUGLAS ZIMMERMAN / DAILY PILOT(LA)Securities and Exchange Commission Chairman Christopher Cox, shown here as a U.S. House representative, wants the SEC to keep subpoenas of financial journalists rare. “The mission of the SEC and the mission of financial journalists are complementary,” Cox said.