Rep. Christopher Cox, R-Calif., was nominated today by President George W. Bush to succeed William Donaldson as chairman of the SEC. Mr. Donaldson announced his resignation Wednesday; he will leave June 30. Mr. Cox's nomination goes before the Senate Banking Committee and the full Senate for approval.
"Chris understands how the markets work, and he knows the need for transparency in financial exchanges and in the halls of business," Mr. Bush said, adding that he has given Mr. Cox a mission to "strengthen public trust in our markets so the American economy can continue to grow and create jobs."
Mr. Cox introduced the 1995 Securities Litigation Reform legislation, which was passed despite President Clinton's veto. The law protects a company from class-action lawsuits by investors as soon as its stock price drops.
Marc E. Lackritz, president of the Securities Industry Association, said Mr. Cox's leadership on securities litigation reform "was instrumental in bringing efficiency and fairness to dispute resolution."