This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

SEC Chief Stepping Down

Updated from 1:10 p.m.

Securities and Exchange Commission Chairman William Donaldson announced Wednesday that he will step down at the end of the month.

The news comes as the agency faces other top-level upheaval. Enforcement chief Steve Cutler quit last month and was replaced by Linda Thomsen. Meanwhile, SEC Commissioner Harvey Goldschmid has indicated he too intends to leave this summer. Goldschmid is one of two Democratic commissioners on the five-member SEC commission.

It takes a majority vote to bring about any SEC enforcement action. Donaldson, a Republican and longtime friend of President Bush's family, often has sided with the two Democratic commissioners on the SEC.

Donaldson, a founder of the old Donaldson Lufkin Jenrette investment bank, took over the helm of the SEC at critical point in its history. He took over the top job at the SEC in early 2003, while the stock markets were being roiled by a series of corporate scandals.

Bush tapped Donaldson to replace former SEC Commissioner Harvey Pitt, whose brief tenure was marked by criticism that he was slow to act on the collapse of Enron and on Wall Street's role in puffing up tech bubble of the late 1990s.

During Donaldson's tenure the SEC levied some of its biggest fines in history, including a $750 million sanction against WorldCom, the beleaguered telecom giant that's now called MCI (MCIP).

Donaldson also has been an advocate of stronger regulation of hedge funds. Last year, the agency adopted rules that will require most hedge fund advisers to register with the government within two years, firming up oversight on an industry that has been linked to several high-profile financial blowups.

But Donaldson's tenure also had its problems. While the SEC has moved faster in bringing enforcement actions, it continues to chase New York Attorney General Eliot Spitzer for the public limelight.

Last week, a Government Accountability Office audit reported that the agency failed to institute some of the same financial controls it requires of the public companies it polices. That news came just as the SEC was dealing with the disclosure of a $48 million budget shortfall.

The Bush administration has not named a successor.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs