Pitt Appointed Sec Chair - Harvey L. Pitt - United States. Securities and Exchange Commission - Brief Article

Internal Auditor, Oct, 2001 by C. Brune

WASHINGTON securities lawyer Harvey L. Pitt, 56, was officially sworn in as the 26th chairman of the U.S. Securities and Exchange Commission (SEC) on Aug. 3, just two days after the Senate confirmed his chairmanship with a unanimous vote. Pitt was nominated for the position in July by U.S. President George W. Bush and received bipartisan praise and support during his Senate Banking Committee confirmation hearing later that month. "I will ensure vigilant enforcement of sound rules that protect all investors against fraudulent, deceptive, and manipulative misconduct," he told committee members.

During the hearing, Pitt outlined several goals, including a promise to "focus on the agency's mission to nurture a climate that is conducive to, and encourages, the creation of capital." He called capital the "life blood" of innovation and charged the commission with a mandate to ensure efficient, cost-effective, and seamless capital raising.

Additionally, Pitt proposed a review of the agency's nearly 70-year-old securities laws to ensure that they reflect current times and are reasonable, cost-effective, and conducive to competition. He also vowed to improve the SEC's service commitment and devote his efforts to enhancing the commission's responsiveness to all of its constituencies.

Pitt's confirmation as chairman marks a return to familiar territory. He served as the SEC's general counsel in the 1970s, before entering into private legal practice. In August, Pitt left a lucrative practice -- earning more than $3 million last year -- to assume his new role as SEC chair, a position with an annual salary of $133,700.

Pitt succeeds Arthur Levitt, who left office in February after more than seven years of service, the longest term ever served by a chairman in the SEC's 67-year history. Laura S. Unger, a republican commissioner, served as acting chairman in the interim.