Watch out, Wall Street. Former federal prosecutor Mary Jo White—President Obama’s pick to chair the Securities and Exchange Commission — takes no prisoners. (Elizabeth Lippman)
The regulatory forecast for Wall Street is in — the cold snap’s over and it’s going to be hot with an increased chance of enforcement actions.
That outlook popped up on the radar screens yesterday after President Obama nominated Mary Jo White, a tough-as-nails former prosecutor, as the head of the Securities and Exchange Commission.
If confirmed by the Senate, White, who wiped the Teflon from John Gotti by winning a murder conviction against the mobster, would be the first prosecutor to lead the securities regulator.
“We need to keep going after irresponsible behavior in the financial industry so that taxpayers don’t pay the price,” Obama said when discussing his choice at a news conference.
Longtime SEC commissioner Elisse Walter has been keeping the chairman’s seat warm since former head Mary Schapiro left last month.
Senate approval is expected.
“Having an SEC chairman with extensive prosecutorial experience can be a good thing,” said Sen. Chuck Grassley (R-Iowa).
White, 65, led Manhattan’s US Attorney’s office for close to 10 years after being tapped by President Clinton in 1993. At the time, White was an assistant US prosecutor in Brooklyn.
As a crimefighter, she helped bring to justice the terrorists responsible for the 1993 World Trade Center bombing.
What’s more, White selected the SEC’s now-departing enforcement chief, Robert Khuzami, as a young prosecutor to go after the “Blind Sheikh,” Omar Abdel-Rahman, for his role in the 1993 bombing.
White’s expected role as The Street’s top cop comes after a presidential campaign that saw most financial executives back Republican Mitt Romney.
While the choice of White won overwhelmingly positive reviews, some see her as too close to Wall Street brass.
After leaving the Justice Department, White joined law firm Debevoise & Plimpton, where she defended John Mack of Morgan Stanley and, more recently, Bank of America’s former chief, Ken Lewis.
“Obama is not going to clean up financial corruption by pinning a sheriff badge on a Wall Street protector-in-chief,” former SEC lawyer Gary Aguirre told The Post.
“How can you go out and have drinks with these people at night and prosecute them the next morning?”
Aguirre was fired from the SEC in 2005 amid a probe of insider trading at Pequot Capital.
As part of the investigation, Aguirre sought to interview Mack, then in line for the CEO job at Morgan Stanley.
In testimony before the Senate Finance Committee over the firing, Aguirre accused White — who had been hired by the firm’s board to determine Mack’s involvement in the case — of helping to derail the investigation.
But people who know White said the criticism neglects to stress her aggressive work ethic.
“I think that’s to her credit, 100 percent. She doesn’t shy away from fights,” said Ken Vianale, who worked under White as a prosecutor.
The Senate investigation found Aguirre was wrongfully terminated by the SEC.