Obama Names Successors to Two Commissioners Whose Terms Will Expire.

[ by Howard Haykin ]

President Barack Obama continues to shake up securities markets regulation and the face of the Securities and Exchange Commission.  On Thursday, the President nominated two Senate aides to serve as the next SEC Commissioners.  Kara Stein, a Democrat, and Michael Piwowar, a Republican, if confirmed by the Senate, would succeed Commissioners Elisse Walter and Troy Paredes, respectively, whose terms are set to expire.

Mary Jo White Transitions.   Ms White, about a month into he appointment as SEC Chair, has started overhauling the staff.  The former federal prosecutor turned Wall Street defense attorney has named co-heads of Enforcement, new leaders of other major divisions, and her own chief of staff.  She also hired a general counsel, Anne Small, who rejoined the SEC from the White House.

Profiles of Nominees.   Kara Stein is an aide to Senator Jack Reed, a Rhode Island Democrat who is a senior member of the Senate Banking Committee, which oversees the SEC.  Michael Piwowar is the committee’s Republican chief economist.  For months, Stein and Piwowar have been mentioned as likely successors to Walter and Paredes.  The Senate must approve the nominations.

Obama's decision to nominate them roughly one month after SEC Chairwoman Mary Jo White was sworn in signals the administration is anxious to ensure the agency will have a full, five-member commission to complete its busy rulemaking agenda.  The SEC is trying to complete rules required by the 2010 Dodd-Frank Wall Street reform law.  It has fallen far behind its rule-making responsibilities, having carried out only a small fraction of the changes.  Obama's nomination of Mr. Piwowar, who once served as a senior economist on the Council of Economic Advisers and a visiting scholar at the SEC, ensures the agency likely won't take its focus off of the issue.

In a statement late Thursday, the committee chairman, Tim Johnson, expressed support for both nominees. “I look forward to moving both their nominations forward to ensure the commission continues to operate at full strength,” said Mr. Johnson, Democrat of S. Dakota.

For further details, go to:   [ Dealbook, 5/24/13 ] and [ Reuters, 5/24/13 ] .