NEW SEC CHIEF

The vacancy left by the fall of formerSEC Chairman Harvey Pitt hasbeen filled by William H. Donaldson,cofounder of the investment firmDonaldson, Lufkin, and Jenrette, andformer CEO of the New York StockExchange. Whether Donaldson provesto be an effective advocate for the individualinvestor, like former SEC chairmanArthur Levitt, or just a more judiciousversion of his predecessor Pitt,will determine if the confidence crisisthat pervades Wall Street can be overcome,say market watchers. Criticspoint out that Donaldson's experienceon accounting issues is thin and thathis track record shows him to besomewhat soft on tougher accountingstandards and enforcement. They sayhe'll need to take a harder line to bean effective chairman.