US regulator to meet behind closed doors

Link: SEC in crisis – follow the story

The body, which has been dogged by scandal over the appointment of former FBI director William Webster as its chairman, will discuss such things as office space, and staff, according to AP.

The private nature of the meeting has already generated fresh criticism, this time from Barbara Roper, director of investor protection at the Consumer Federation of America, who said it would further the impression that the public interest is not being served.

Last week US accountancy firm BDO Seidman released documents that it said showed Webster knew about ‘material weaknesses in internal control’ at US Technologies, where he served as head of its audit committee.

Harvey Pitt resigned last week, amid a storm over the appointment of Webster after he did not tell other members of the SEC executive of Webster’s connection to US Technologies.

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