Reagan Names Law Professor to Head SEC
President Reagan today chose David S. Ruder, a Northwestern University law professor with no prior government experience, to become chairman of the Securities and Exchange Commission.
In a statement announcing the nomination, Reagan cited Ruder’s “expertise in the areas of securities anti-fraud provisions, insider trading, tender-offer regulation and SEC enforcement” in assuming the chairman’s post.
“No one is better equipped to continue the fine work of Chairman John Shad in the area of insider trading enforcement,” Reagan said.
“The commission’s vigilant efforts to enforce the anti-fraud laws have enhanced investor confidence in the nation’s securities trading markets, and under the leadership of David Ruder, we can expect the commission will continue with that essential role,” the President said.
Shad is leaving the SEC chairmanship to accept Reagan’s appointment as ambassador to the Netherlands. He already has been confirmed in that post.
Law School Dean
Ruder, 58, was dean of Northwestern’s law school for eight years. He taught courses in SEC enforcement, insider training and tender offers, and has written more than 40 articles on corporate securities matters, university spokesman Chuck Loebbaka said.
He also helped found Northwestern’s Corporate Counsel Center, which provides legal research and continuing professional education for corporate lawyers. He has been president of the center since 1983.
The appointment to the chairman’s post, which requires Senate confirmation and pays $82,500 a year, comes at a critical time for the SEC. The commission is deeply involved in the insider trading scandal on Wall Street and has vigorously intensified its pursuit of other abuses in trading.
The White House’s first choice to succeed Shad reportedly was U.S. Atty. Rudolph Giuliani, the New York prosecutor who handles the criminal side of the insider trading cases.
But Giuliani reportedly turned down the post, leading to a three-month search for a successor to Shad that culminated in Ruder’s selection.
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