Senate Gives Ruder Nod for SEC Post Despite Opposition

David S. Ruder, a Northwestern University business law professor, was approved by the Senate to be chairman of the Securities and Exchange Commission on Thursday, despite opposition by some members of the banking committee.

The opposition to Ruder, 58, to replace John S. R. Shad, now ambassador to the Netherlands, came from senators who dislike Ruder’s stand on inside trading and corporate takeovers.

Many on Wall Street and on Capitol Hill had expected the Reagan Administration to nominate someone with a background in securities law enforcement, such as U.S. Atty. Rudolph W. Giuliani, who has prosecuted inside traders including Dennis B. Levine and Ivan F. Boesky.

When Ruder was nominated, some congressional critics said the Administration was more concerned with getting someone who shares President Reagan’s free-market philosophy than someone who would enforce securities laws closely.

The 81-17 vote on the nomination came after Sen. William Proxmire (D-Wis.), chairman of the Committee on Banking, Housing and Urban Affairs, said Ruder “has no record of any concern about securities abuse. He has criticized the SEC for being too zealous in their enforcement.”

Sen. Terry Sanford (D-N.C.), a committee member, said that although Ruder may have respected academic credentials and an extensive record of publications on the securities laws, “he is simply not the right person for the SEC.

“Certainly, at a time when the SEC desperately needs a strong enforcer, the White House has instead put forward a man whose commitment to enforcement can only be called wanting,” Sanford said.