I thank Chairman Sarbanes for holding this hearing on the nomination of Harvey Pitt, to be Chairman of the Securities and Exchange Commission (SEC). Chairman Sarbanes, I appreciate you scheduling the nominations hearings and votes in an expeditious manner.
Mr. Chairman, there are currently only two Commissioners serving at the Securities Exchange Commission (SEC). The addition of Mr. Pitt will provide the SEC with three out of a total of five Commissioners that are needed. Harvey's tremendous credentials and qualifications are unquestionable. His immense understanding of securities laws and regulations is essential for the post he is about to assume.
The SEC serves an important function for the protection of investors' interests and the integrity of our securities markets. However, it is crucial that the SEC does not issue regulations only in the name of protecting investors. The policy-making process should be accompanied by a cost-benefit analysis approach and the appropriate due diligence in the rule-making procedures.
I welcome Harvey Pitt to the Banking Committee and look forward to working with him in the future.