What could await the SEC under chairman Cox

Regime change has arrived at the Securities and Exchange Commission. After a two-and-a half-year period as chairman of the main US financial regulator that was distinguished by record fines against companies and sweeping new rules for the capital markets, William Donaldson steps down on Thursday. To some people inside the SEC headquarters in Washington, his exit feels less like an orderly transfer of power than a politically motivated coup.

President George W. Bush has nominated Christopher Cox, a Republican congressman, to replace Mr Donaldson. At first sight, the background, philosophy and style of the two men could not be more different. Mr Donaldson, 74, is a Wall Street grandee who founded an investment bank and was chief executive of the New York Stock Exchange. Mr Cox, who has served 17 years in the House of Representatives, would be the first sitting lawmaker to have the job.

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