Senator Backs LaFalce for Accounting Board

Sen. Charles E. Schumer (D-N.Y.) has written to the White House recommending that Rep. John J. LaFalce (D-N.Y.) head up the nation’s new accounting oversight board, as rumors swirled Thursday over who will fill that job, as well as that of Securities and Exchange Commission chairman.

In a letter to President Bush, Schumer said LaFalce “would be a logical person to head the board and would immediately lend it the credibility it will need.” LaFalce, who is retiring from the House, helped formulate several of the measures included in July’s Sarbanes-Oxley Act, the sweeping securities and accounting law reform passed by Congress after a rash of corporate scandals.

The act created the Public Company Accounting Oversight Board. Its members were selected last month, but after less than three weeks on the job, Chairman William H. Webster resigned Nov. 12 amid controversy over his ties to a firm that has been sued by shareholders.

His departure followed the Nov. 5 resignation of SEC Chairman Harvey L. Pitt, who had backed Webster for the post.

Since then speculation has run high about who might replace both Webster and Pitt. Sources close to the commission said Thursday that Charles D. Niemeier, chief accountant in the SEC’s enforcement unit and one of four current accounting board members, still was seen as a possible interim chairman.

No permanent accounting board chairman was likely to be chosen until a new SEC chairman is found, sources said.