[ by Melanie Gretchen ]

Mary Jo White continues her ascent toward assuming the role of SEC chair, following her nomination by President Barack Obama last month.  Next month – probably during the week of March 11^th – Ms. White will be called to testify before the Senate Banking Committee. 

It's reported that Ms. White may share her hearings with Richard Cordray, the current director of the Consumer Financial Protection Bureau, who also requires Senate confirmation this year.  Last year, in a controversial move, President Obama issued a recess appointment to Mr. Cordray who, at the time, had been facing strong opposition from Republican Senators.

Ms. White, 65, currently a partner with Debevoise & Plimpton, heads that firm's litigation practice.  And Mary Jo's credentials as a litigator are unmatched, having defended some of Wall Street’s biggest names - including former Bank of America CEO Kenneth Lewis, JPMorgan Chase, and the board of Morgan Stanley.  As a federal prosecutor in New York City for more than a decade, she helped oversee the prosecution of the crime figure John Gotti and led the the original investigation into Osama bin Laden and Al Qaeda.

Questions Facing White's Nomination Bid. One issue is Ms. White's prevailing conflicts of interest.  Critics have questioned how, if at all, can she oversee the same global financial institutions and bank executives that she once represented as a defense lawyer?  Also, if Ms. White decides to recuse herself from an investigation because of such conflicts, how might this impact the overall effectiveness of the SEC, whose four Commissioners are highly polarized along party lines.

A second issue is Ms. White's inexperience in managing Wall Street businesses and her inexperience with financial rule-writing and regulatory details.  That is why the SEC Chair typically has been given to individuals with extensive, hands-on Wall Street experience - e.g., Arthur Leavitt.  In any event, Ms. White's credentials have been referred to by both her proponents and critics.  Several Democrats, including Senator Charles Schumer of New York, have called her "tough as nails" for her work as a federal prosecutor and the female United States attorney in Manhattan.

The line's been drawn in the sand.  Soon we'll see which way the winds are blowing.  The debates can go either way, as the preliminary media has shown. 

For further details, go to [Dealbook, 2/25/13].