Mr. Chairman and Ranking Member Sarbanes, thank you for convening today's hearing to consider the nomination of Mr. William Donaldson to become Chairman of the Securities and Exchange Commission. I would like to take a moment to welcome the new members of the Senate Banking Committee. I look forward to working with Senators Chafee, Dole and Sununu on so many issues of importance to this country.
Mr. Chairman, our nation continues to confront a crisis of confidence in the markets that was precipitated by outrageous fraud in companies and their auditors, from WorldCom to Enron to Arthur Andersen. It is my hope that new leadership at the SEC will help to move America forward. Ever since Mr. Pitt announced his resignation on election night, we have been waiting for President Bush to show leadership in this area. I know I join my colleagues in welcoming a strong new head of the SEC, and we look forward to hearing Mr. Donaldson's thoughts on his vision for this critical position.
I would like to note to this panel the importance of setting the tone for the future of the SEC. As I'm sure most recognize now, it is clear that Mr. Pitt made a grave error in the tone he set at the start of his tenure by declaring his intention to create a "kinder and gentler" SEC. As we have all learned since, most of us the hard way through a steep decline in the value of our retirement savings, we must work to create a formidable SEC, a trustworthy SEC, and most important, an SEC that places the interests of investors above all else.
If the SEC is to become kinder and gentler, I believe it should be toward investors, who are now negotiating the difficult maze of arbitration to seek justice over the outrageous fraud that has gutted their life savings. I look forward to hearing Mr. Donaldson's views about the arbitration process, and how we might take steps to protect the rights of investors in this area.
Companies must understand that in the long term, an SEC that is trusted by investors will work to their ultimate benefit. Until we restore confidence in investors, we cannot get our economy back on track. Investors have not pulled out of the market because they want to avoid paying tax on their dividends. They have pulled out because they don't trust corporate leadership, and they don't trust the SEC.
Now, I would like to note for the record that the SEC under Harvey Pitt has taken some important steps toward implementing the Sarbanes-Oxley act, and I would especially like to acknowledge the extraordinary leadership of Senator Sarbanes, along with Senators Dodd and Corzine on this effort. We need to keep the pressure on implementation of this law, and I look forward to working with Chairman Shelby and this committee to conduct strong oversight.
I would ask that a complete statement and additional questions be submitted into the record, and I once again thank the Chairman for convening this hearing.