By Agnes T. Crane
NEW YORK, Jan 24 (Reuters Breakingviews) - President Barack
Obama's pick to head the U.S. Securities and Exchange Commission
is just what the doctor ordered. Former U.S. Attorney Mary Jo
White will bring a much-needed prosecutorial zeal to an agency
seen as too soft on Wall Street.
White, unlike many SEC chairmen before her, is no financial
markets insider. Her most recent role as chief litigator at New
York law firm Debevoise & Plimpton did bring her into contact
with the banking world at times - she represented former Bank of
America boss Ken Lewis, for example. And she has helped
a number of Fortune 100 companies navigate SEC investigations.
But she's no expert in the nitty gritty of the securities
markets.
That shouldn't be a hindrance - after all, more financially
qualified regulatory leaders have not always done well. Her long
career pursuing a variety of cases demonstrates that she has the
ability to get to the nub of any issue. In almost a decade as
one of America's premier prosecutors, for example, she nailed
mobster John Gotti and Omar Abdel-Rahman, the blind Egyptian
sheikh jailed for involvement in a 1993 attack on the World
Trade Center.
Her role on the opposite side of the SEC may lead some
lawmakers to question her suitability during the confirmation
process. That News Corp sought her advice when the
media conglomerate feared the UK phone-hacking scandal would
spill over into the United States may also raise eyebrows. Yet,
switching from defense to offense, or vice versa, isn't
necessarily problematic. A recent study by accounting professors
from Rutgers and Emory University found that enforcement lawyers
who later switch sides are tougher while working for the
government than those who don't. So Congress shouldn't worry too
much about White going soft in hopes of keeping past or future
clients happy.
White's most challenging task may be to convince SEC
commissioners to kiss and make up. An acrimonious tussle over
money-market reform created bad blood among the five-member
group last year. Former Chairman Mary Schapiro's failure to
overhaul that part of the industry also damaged their
credibility since the White House had to swoop in to pick up the
pieces.
White has a big challenge ahead of her. But she's the right
person for the job.
CONTEXT NEWS
- President Barack Obama will nominate former U.S. Attorney
Mary Jo White on Jan. 24 as chairman of the U.S. Securities and
Exchange Commission. Last year, the president tapped SEC
Commissioner Elisse Walter to head the agency on a temporary
basis after Mary Schapiro stepped down.
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
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