    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book II)]
    [December 10, 2002]
    [Pages 2179-2180]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Announcing the Nomination of William Donaldson To Be Chairman of the Securities and Exchange
    Commission
    December 10, 2002

        The President. Good morning. The health and future of the American
    economy depends heavily on the honesty of American business and the
    integrity of the securities markets. Investors must have completely fair
    and accurate information to make sound investment decisions. The Federal
    Government, through the Securities and Exchange Commission, enforces the
    basic truthfulness requirement of our society.
        Today I announce my nominee to serve as the Chairman of the SEC.
    Bill Donaldson will be a strong leader with a clear mission: to
    vigorously enforce our Nation's laws against corporate corruption and to
    uphold the highest standards of integrity in the securities markets.
        I am proud you're here. I also want to thank Jane and Adam and
    Matthew and Kimberly and Andre for being here
    as well, the Donaldson family.
        Bill is one of the most respected business leaders in our Nation.
    And he brings a unique and diverse background to this really important
    task. As a founder of a leading investment banking firm, he understands
    the capital markets, and he understands financial institutions. As the
    chairman of the New York Stock Exchange, he set high business standards
    and worked for the interests of the small investor. As the founding dean
    of the Yale School of Management, he sees business as a calling which
    demands high standards of integrity. He's a lifelong entrepreneur, a
    Marine Corps veteran. He's an experienced and dedicated public servant.
    He's a good man. Throughout his exceptional career, Bill Donaldson has
    shown an ability to take on big assignments, to confront big problems,
    and to meet big challenges with a lot of energy and a lot of success.
        The new Chairman will assume leadership of an agency that's moving
    forward on many fronts. This past year, the SEC has filed a record
    number of actions for financial reporting and disclosure violations. The
    agency sought the removal of more than 100 corporate officers and
    directors on grounds of misconduct, has filed dozens of restraining
    orders to protect against corporate misdeeds, ordered corporations and
    executives to return to investors hundreds of million dollars in
    improper gains. To strengthen investor confidence, the SEC ordered the
    leaders of nearly 1,000 large corporations to certify the financial
    information they submitted in the last year--to certify that it was fair
    and that it was accurate. SEC investigators are also working closely
    with our Corporate Fraud Task Force to ensure quick action against fraud
    and against insider trading.
        We've accomplished much, and there's more to do. We must continue to
    prosecute corporate criminals. We must implement

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    the provisions of the Sarbanes-Oxley Act, from broader disclosure
    requirements to tougher penalties for wrongdoing, to removing executives
    who break the faith with the shareholders and the American people. These
    are the far most reaching reforms of American business since Franklin
    Roosevelt was the President. We'll give them full force.
        Over the last year, the SEC has added new personnel and will receive
    a significant increase in its budget. Today I'm announcing that I will
    request yet another increase in SEC funding for fiscal year 2004, which,
    when enacted, will mean we have nearly doubled the budgets from 2002.
        Bill Donaldson and his entire organization will have my strong
    support and the resources they need to carry out their important duties.
    Public confidence in our market and our stock exchanges and in companies
    is absolutely essential to our free enterprise system and to a growing
    and dynamic economy that creates jobs and opportunities for each and
    every American.
        When we uphold an ethic of responsibility in American business, we
    expose the wrongdoers. We also recognize and reward the many good
    companies and honest people who create wealth and jobs throughout the
    economy.
        I want to thank Bill Donaldson for taking on this very important
    task. I look forward to his confirmation by the United States Senate at
    the earliest possible date.
        Welcome, Mr. Donaldson. Appreciate you.

    [At this point, Chairman-designate Donaldson made brief remarks.]

        The President. Thank you, Bill. And I appreciate your thank-you.
        Q. Mr. President, can we ask you about your pension guidelines, sir?
        The President. No.
        Q. Any initial reaction to the Iraq declaration, sir?
        The President. Have a good day.

    Note: The President spoke at 11:50 a.m. in the Roosevelt Room at the
    White House. In his remarks, he referred to Chairman-designate
    Donaldson's wife, Jane, and their children, Adam, Matthew, Kimberly, and
    Andre. The transcript released by the Office of the Press Secretary also
    included the remarks of Chairman-designate Donaldson.