Elisse Walter, the new chairman of the Securities and Exchange Commission, is expected to keep a close eye on hedge funds in her new job. (AP)
Brooklyn native Elisse Walter, a career regulator, was tapped yesterday to lead the Securities and Exchange Commission after Chairman Mary Schapiro said she was stepping down after four tumultuous years atop the Wall Street watchdog.
Walter, 62, who has waged a successful personal battled against ovarian cancer and public battles against financial firms for greater disclosure, is seen as a safe choice by President Obama.
SEC watchers expect Walter, who has supported many Schapiro positions, to continue most of the current regulatory battles — including her push to be cautious in allowing hedge funds greater latitude in marketing and advertising.
“She is a strong advocate of disclosure, of regulation and of consumer protection,” former SEC Commissioner Edward Fleischman said.
Designating Walter, who is an SEC commissioner, as the new chairman does not require Senate approval — helping Obama avoid a potentially fractious proceeding.
White House officials said the president would look to nominate someone to the SEC but did not say if the potential nominee would be for chairman.
The resignation by Schapiro, 57, was not unexpected.
The Post reported in September that Schapiro was telling friends that she was likely to step down before the end of the year.
In her letter to Obama, Schapiro said she intends to stay on until Dec. 14.
Schapiro fought hard political battles for congressional approval of her reform efforts and lost one of her signature efforts — reforming the money-market industry.
Obama was one of many elected and business officials praising Schapiro’s work.
“The SEC is stronger, and our financial system is safer and better able to serve the American people — thanks in large part to Mary’s hard work,” Obama said in a statement.
When Schapiro took over the agency in 2009, it was reeling from lax oversight that led to massive frauds by Ponzi swindlers Bernie Madoff — the world’s most notorious, costing investors more than $21 billion — and Allen Stanford, who stole $7.5 billion from victims.
Experts said Schapiro made progress in improving the SEC’s image in areas such as setting up a whistle-blower program to catch wrongdoers and winning record settlements against Wall Street giants, including the record $500 million penalty paid by Goldman Sachs in 2010.
The SEC said that in the past two years under Schapiro, the agency logged record enforcement actions, including 735 in the 2011 fiscal year and 734 in 2012.
The agency also made strides such as new circuit breakers to fight flash-trading abuses.
Meanwhile, the agency is facing uphill fights in other areas to implement the Dodd-Frank reform act due to pushback from the industry and its allies in Congress.