WASHINGTON (Bloomberg) — Arthur Levitt officially ended his record tenure as chairman of the Securities and Exchange Commission Friday, leaving behind what's expected to be at least a brief period of regulatory inactivity at the U.S. stock and bond market watchdog.
"Enforcement won't stop, but other initiatives will stop," said New York lawyer Ed Fleischman, an SEC commissioner from 1986 to 1992. Levitt had a reputation as an investor's champion who pushed for more open information and fairness.
The White House hasn't yet named an acting chairman to replace Levitt, though Fleischman said it's likely to be Commissioner Laura Unger, the only Republican on the commission.
She is scheduled to represent the SEC at a Senate Banking Committee hearing next Wednesday on trading fees and SEC employee compensation.
The Bush administration hasn't said when it will nominate a replacement for Levitt, who Friday ended his seven-and-a-half year tenure, the longest ever for an SEC chairman. The eventual Bush nominee will have to be approved by the Senate in a process that could take several months.
Levitt began his tenure in July 1993, six months after then-President Bill Clinton took office. Then-SEC Commissioner Mary L. Schapiro, now president of the National Association of Securities Dealer's regulatory unit, served as acting SEC chairman for several months.
Levitt "basically fought the good fight for the American investor and was guided by one pole star: increasing the transparency and disclosure standards in our markets," commented Columbia University law professor John Coffee when Levitt announced in December that he planned to leave.