Mary Jo White Appointed To Head SEC

By Korollos Shalaby

President Barack Obama proposed Thursday that Mary Jo White be the head of the country's Securities and Exchange Commission (SEC), replacing Elisse Walter.

Walter took office in December after his predecessor Mary Schapiro left the institution. White's nomination shows the president's desire to have a strict officer watching Wall Street. White, the former U.S. attorney for the Southern District of New York known for having tried to known terrorists and mafia figures, would become the third woman consecutive to wield powerful posts in the SEC.

"We need to pursue irresponsible behavior in the financial industry so that taxpayers do not pay the price," Obama said in announcing the nomination. "I am absolutely confident that Mary Jo has the experience and determination to deal with these complex issues and to protect the American people in a way that is smart and in a way that is fair," he added.

His election quickly brought praise from Wall Street reform supporters who claim that White aptly handled the agency that plays a key role in overseeing the U.S. financial markets.

White is a candidate that does not generate more controversy, although she does not have extensive experience with securities policies and recently worked privately defending Wall Street figures, including former chief executive of Bank of America, Ken Lewis.

"I see her as a lawyer with a good reputation who has spent a significant amount of time as a partner in Debevoise representing companies and individuals in high profile issues related to values," said Cheryl Scarboro, former head of the unit of the Act Foreign Corrupt Practices SEC and now a partner in the law firm Simpson Thacher & Bartlett.

New York Senator Charles Schumer, a Democrat who sits on the powerful Senate Banking Committee, praised White's reputation as a tough prosecutor and anticipated to be "easily confirmed." A quick confirmation of White might help the SEC to accelerate its implementation of dozens of regulations required by law to reform Dodd-Frank Wall Street 2010.

Obama also nominated Richard Cordray to continue as head of the Bureau of Consumer Financial Protection, the U.S. agency that monitors consumer products like mortgages and student loans. Both appointments must be confirmed by the Senate. During the reign of White as a prosecutor, U.S. prosecutors won the conviction of about 35 Muslim militants accused of plotting against Americans.

It is unclear whether White's past work defending clients on Wall Street will generate problems during his confirmation process in the Senate. When asked whether the Government intended to problems Cordray is confirmed in the renomination to his office, the White House spokesman, Jay Carney, said he expected no objections "substantial" against him.

"He is the right person for the job," Carney said. He added that previous obstacles to Cordray's nomination had been based on "political considerations" of lawmakers who opposed the creation of financial protection agency.

Korollos Shalaby is a nationally acknowledged mortgage expert with over 6 years experience as a loss mitigation expert and mortgage finance consultant. He has owned several companies and has been at the forefront of all lending and banking practices since 2006.