US finance watchdog looks for Pitt's successor

The search has begun for a new head of the US Securities and Exchange Commission after chairman Mr Harvey Pitt resigned amid …

The search has begun for a new head of the US Securities and Exchange Commission after chairman Mr Harvey Pitt resigned amid turmoil inside his agency.

As Wall Street analysts downplayed the potential impact on the markets of Mr Pitt's departure last night, speculation turned to successors and whether ex-FBI chief Mr William Webster would stay on as head of a new accounting oversight board.

The appointment of Mr Webster last month, with Mr Pitt's strong support, precipitated the crisis that led to the SEC chairman's move to step down.

Last week, Mr Pitt came under pressure to step aside for failing to tell SEC commissioners and the White House that Mr Webster had chaired the audit committee of US Technologies Inc., a small, Washington-based company accused of fraud in lawsuits.

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White House spokeswoman Ms Claire Buchan said President Bush accepted Mr Pitt's resignation. White House officials said Mr Pitt made the decision on his own and was not pushed. "We did not ask him to step aside," an official said.