[Weekly Compilation of Presidential Documents Volume 38, Number 50 (Monday, December 16, 2002)]
[Pages 2146-2147]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.

[[Page 2147]]

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 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.