Donaldson Announces Resignation as S.E.C. Chairman

[quaoar]

http://www.nytimes.com/2005/06/01/business/01wire-sec.html?hp&ex=1117684800&en=ebcc13d3fff7ebc7&ei=5094&partner=homepage

By JENNY ANDERSON
Published: June 1, 2005
William Donaldson, the 27th chairman of the Securities and Exchange Commission, will step down at the end of the month, the commission announced today.

Mr. Donaldson became chairman in February 2003 in the wake of missteps by his predecessor, Harvey Pitt. His tenure began as a wave of corporate scandals crested and as state regulators, most notably the New York attorney general, Eliot Spitzer, stepped up competitive regulatory efforts.

"When I assumed the chairmanship of the Securities and Exchange Commission roughly two and one-half years ago, public confidence was severely undermined, reflecting the corporate and financial scandals that had shaken the nation," Mr. Donaldson said in a statement. "Thanks to the dedicated efforts of the many professionals who serve at the S.E.C., this period has represented an extraordinarily active and effective time for the agency."

Still, Mr. Donaldson's tenure has been controversial. The commission consists of two Democrats, two Republicans and a chairman appointed by the president. Mr. Donaldson, a Republican, has sided with the two Democratic commissioners on high-profile issues including mutual fund governance, hedge fund regulation and the ability for shareholders to nominate directors to corporate boards.

[Viva_La_Revolution]

1. Donaldson said

Donaldson said he believed "the time has come for me to step down and return to the private sector and my family."

http://www.katu.com/business/story.asp?ID=77520

Code for - Jump! Splash!

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2. I'm betting this is the reason he is on his way out

Mr. Donaldson, a Republican, has sided with the two Democratic commissioners on high-profile issues

[amandabeech]

3. Get him out of the way before the hedge fund excrement hits the cooling

device? Or maybe there are problems coming down the pike in mutual funds.

CNBC has Harvey Pitt on. Maybe he's ready for another run at it.