By Carrie Johnson

Washington Post Staff Writer

Wednesday, June 1, 2005; 2:18 PM

Securities and Exchange Commission Chairman William H. Donaldson has submitted his resignation to the White House, after an eventful two-and-a-half-year tenure marked by Wall Street trading abuses and accounting scandals, an agency spokesman said.

Donaldson, 73, will hold a press conference later today to discuss his decision to step down on June 30. The spokesman, Matt Well, said further details would be available then.

Securities and Exchange Commission Chairman William Donaldson testifies before a Senate Banking Committee hearing. (File Photo - Bloomberg News)

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SEC Press Release: William H. Donaldson to Step Down on June 30

President Bush tapped the former investment banker and chairman of the New York Stock Exchange to provide stability at the SEC, which had been shaken by accounting blowups at Enron Corp. and WorldCom Inc., as well as disagreement among the agency`s five commissioners.

Donaldson pushed through more than a dozen rules designed to clean up the $7 trillion mutual fund industry and more recently, controversial rules changing the structure of U.S. stock markets.

Industry groups, including the U.S. Chamber of Commerce, have stepped up criticism of the SEC in recent months, arguing that regulators are overreaching both in their enforcement efforts and by mandating costly reviews of corporate controls designed to prevent fraud.

Donaldson`s departure could presage a period of dramatic change at the SEC. A key ally, Democratic Commissioner Harvey Goldschmid, also is leaving to return to teaching at Columbia University this fall. The term of another Democrat, Roel A. Campos, expires later this year. Senate Democrats have suggested that the president nominate current SEC market director Annette Nazareth to fill Goldschmid`s slot, but the White House has not yet acted on the recommendation.

The SEC has approved a number of rules by a 3-2 vote, so the loss of two or even three current members could mean a reordering of priorities at the agency responsible for insuring that investors get a fair deal.