Bloomberg reports that William Donaldson, the co-founder of investment bank Donaldson, Lufkin & Jenrette (DLJ), is George Bush's choice to replace Harvey Pitt at the helm of US regulator the Securities & Exchange Commission (SEC).
Bush said that 'the health of the American economy depends heavily on the honestly of American business....Bill will be a strong leader with a clear mission to vigorously enforce our nation's laws against corporate corruption'.
Donaldson is a popular choice for the SEC job and insiders do not expect any problems with US lawmakers, who will need to confirm his nomination. Having said this, he is a defendant in a fraud suit filed last year against Aetna, the health insurer where Donaldson was one-time chairman. The case is thought, however, to be something of nothing.
71 year-old Donaldson is a former US Marine, founder of the Yale School of Management and co-founder of DLJ, a firm sold to CSFB for $13.4bn in August 2000, at the peak of the 'great bull market'. Donaldson has not, however, been associated with DLJ for about 30 years. He has an unblemished track record and is certainly an acheiver who knows and understands the industry.