Academic journal article Journal of Accountancy

Arthur Levitt Becomes New SEC Chairman

Academic journal article Journal of Accountancy

Arthur Levitt Becomes New SEC Chairman

Article excerpt

Arthur Levitt, Jr., was sworn in as the 25th chairman of the Securities and Exchange Commission.

"The SEC exists to protect the integrity of the world's greatest financial marketplace," said Levitt, former chairman of the American Stock Exchange (Amex). He pledged his first goal would be "to maintain that protection for the public investor." Levitt replaced former SEC chairman Richard Breeden, now a partner at Coopers & Lybrand.

Caution on litigation reform. In confirmation hearings before the Senate Banking, Housing and Urban Affairs Committee, Levitt spoke about the rising tide of securities litigation. "I have experienced the pain and the cost of this litigation," he told the committee. "I will work to see if we can come up with a solution." He also questioned whether frivolous suits were being attacked aggressively enough in the courts.

However, Levitt was cautious when asked about proposals to replace the joint and several liability standard (holding codefendant third parties with "deep pockets" liable for losses based on their ability to pay) with proportionate liability (in which judgments against codefendants are based on their relative contributions to claimed losses). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.