Calls Grow For Resignation Of SEC Chief

Pitt, a former lawyer at KPMG, met with audit boss O'Kelly, at a time when the firm is being severely criticised for its part in approving the books of the world's largest copier company, Xerox. KPMG was sacked as Xerox auditors after approving the accounts. The copier company has now agreed to restate its profit going back as far as 1997. O'Kelly announced soon after his April 26th meeting with Pitt that he asked for lenient treatment of the firm. Pitt has denied that they talked about the Xerox problems or any possible enforcement action against KPMG.

Harshbarger said that Pitt's 'pattern of conflicts of interest undermines citizen confidence and investor confidence in the operations of the SEC.'

Pitt has dismissed calls for his resignation and pledged to continue to defend the interests of everyday investors. He said that 'any past associations or past affiliations have absolutely nothing to do with my intent to serve public investors.'

Members of Congress are thought unlikely to let the matter drop and will demand further explanations about what was discussed at the meeting.