(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

William Donaldson Appointed to Head SEC

The White House announced the nomination of longtime Wall Street executive William Donaldson to serve as the new chairman of the SEC. Mr. Donaldson co-founded the investment banking firm Donaldson Lufkin & Jenrette in 1959 and was the firm's chairman and chief executive. He was chairman and CEO of the New York Stock Exchange from 1990 to 1995 and was chairman of Aetna Inc. from 2000 to 2001.

If confirmed by the Senate, Mr. Donaldson will succeed Harvey L. Pitt as chairman. Mr. Pitt announced his intent to resign from the agency on November 5, 2002. Mr. Pitt had been criticized over the selection process of the chairman and members of the new public accounting oversight body created under the Sarbanes-Oxley Act.