Nazareth to step down as SEC member

Annette L. Nazareth, the only remaining Democratic member of the Securities and Exchange Commission, will leave to return to the private sector but has not set a date for her departure, the agency said Tuesday.

Nazareth, who spent nine years at the agency as a commissioner since 2005 and, earlier, as director of the SEC’s market regulation division, has been the only Democrat on the five-member panel since the departure of Roel C. Campos last month.

She announced her resignation as the SEC engages in partisan policy disputes over fines against companies in fraud cases and shareholders’ rights to nominate corporate directors. Congressional Democrats haven’t said publicly whom they would like to see replace Nazareth and Campos, and President Bush hasn’t nominated anyone.

Her departure would leave the investor protection agency with three Republicans -- commissioners Paul S. Atkins and Kathleen L. Casey and Chairman Christopher Cox.

It is not clear whether the two Democrats will be replaced before the SEC is expected to vote on proxy rules in November.

“We are actively vetting candidates for both positions [and] hope to move as quickly as possible,” said Jim Manley, a spokesman for Senate Majority Leader Harry Reid (D-Nev.), who would play a part in the nomination process.

Christopher J. Dodd (D-Conn.), chairman of the Senate Banking Committee, which would review Bush’s nominees, said strong leadership at the agency was essential to public confidence in financial markets.

SEC nominees must be approved by the Senate.

Nazareth’s term expired in June, and she notified Bush that she did not wish to be renominated. Commissioners may remain for as many as 18 months after a term ends.