Pitt Must Go

Senate Banking Committee Chairman Paul Sarbanes (D-Md.) has now decided that Securities and Exchange Commission Chairman Harvey Pitt must go. Unlike many of his colleagues, Sarbanes had not previously called for Pitt's resignation.

Now, as Sebastian Mallaby explains, Sarbanes feels he must go public with his dissatisfaction. The last straw was Pitt's capitulation to accounting lobbyists on the appointment of the chairperson of the new audit oversight board.

As Mallaby writes:

The rap against Pitt used to be that he opposed serious audit reform, even though Enron, WorldCom, Adelphia and other scandals made the case for reform obvious. But now the rap has gotten worse. As well as holding damaging but honest views, Pitt's sincerity must be doubted. If Pitt won't take Sarbanes's advice, President Bush needs to replace him.