Harvey Pitt Steps Down As Head Of The Securities and Exchange Commission

by Leroy Baker, Tax-News.com, New York

07 November 2002

Harvey Pitt on Tuesday bowed to pressure and stepped down as head of the Securities and Exchange Commission, according to a Financial Times report released yesterday.

The business daily reported that Mr Pitt's 15 months as Chairman of America's chief financial regulator have been dogged by controversy over his political alliances:

'His tenure is likely to be remembered as one of the most turbulent in US corporate history and an era when the agency's work became politicised and had its credibility questioned as never before,' it observed.

Critics of Mr Pitt have accused him of being too closely aligned to the Bush administration, and alleged that his previous employment as a corporate lawyer who represented companies subsequently probed by the SEC undermined the possibility of impartiality.

In a letter addressed to President George W. Bush this week, Mr Pitt announced his resignation as both Chairman and member of the SEC, explaining that:

'Unfortunately the turmoil surrounding my chairmanship and the agency makes it very difficult for the commissioners and dedicated SEC staffers to perform their critical assignments. Rather than be a burden to you or the agency, I feel it is in everyone's best interest if I step aside now.'

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