ABSTRACT
Full disclosure reform proved to be an empty promise to many investors after the stock market bubble burst in 2000, but its defenders became even more aggressive in propounding its supposed benefits. Democracy was a terrible thing for full disclosure. Levitt did not, in any event, explain why the vast powers already given to the SEC were inadequate to stop even the grossest of accounting frauds. Harvey Pitt was appointed by President George W. Bush to replace Arthur Levitt as chairman of the SEC. During his tenure on the SEC staff, Pitt witnessed scandals that should have warned him of the dangers of filling the position of chairman. Harvey Pitt retained an ambition to become SEC chairman, an opportunity he seized after George W. Bush won the 2000 election. The hearings in Congress on Enron’s failure did not result in broad support for new securities laws, but the demise of WorldCom renewed congressional interest.
