Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Donaldson May Face Confirmation Troubles Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, January 29, 2003

Donaldson May Face Confirmation Troubles

by: Sean Hanna, Editor in Chief

Harvey Pitt may be at the SEC longer than anyone believes. Senate Democrats are preparing to go after his nominated successor, William Donaldson, according to a report in the Washington Post. The line of attack may be especially effective in the current Washington environment.

The Democrats intend to home in on Donaldson's time as chairman of the New York Stock Exchange (NYSE). It was during his tenure that eight NYSE floor brokers were caught illegally sharing profits from client's trades. The brokers were eventually indicted on criminal charges. The judge overseeing one of the trials wrote that NYSE officials allowed the illegal activity.

"The Exchange's interpretation of the ban proved anemic," the judge wrote. And "its enforcement of the prohibition . . . proved downright anorexic."

Look for the trial record to reappear in the confirmation hearing (assuming there is one). The paper quotes a spokesperson for Senator Paul S. Sarbanes (D-Maryland) stating that "This will be part of a careful review of Mr. Donaldson's record during the confirmation hearing."

The line of questioning may embarrass the administration that is already seen as having ties that are to close to the center of corporate scandals. The most significant ties, of course, are to Enron. Pitt also came under attack for his close ties to the accounting profession as that scandal unwound.

The questioning may also undermine any political faith that Donaldson can investigate wrongdoing on Wall Street.

If the Democrats do manage to torpedo the nomination, Pitt may find that he is able to stay on at the SEC until a new nominee is found.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use