Even as Mary Jo White, President Obama’s choice to lead the Securities and Exchange Commission, faces concerns about her work in private practice, she may end up finding a deputy in a lawyer who has taken a similar path. Andrew J. Ceresney, who was Ms. White’s lieutenant as both a defense lawyer and as a federal prosecutor in Manhattan, is a top contender to become her head of enforcement at the S.E.C., DealBook’s Peter Lattman and Ben Protess report. “A Washington outsider and relative unknown beyond legal circles, Mr. Ceresney would help set the tone for policing financial fraud, effectively making him a top cop on Wall Street. He could join as soon as spring, potentially serving as co-chief with the agency’s acting head of enforcement, the people briefed on the matter said.â€ÂÂ
But both Ms. White and Mr. Ceresney face hurdles. Ms. White, whose confirmation hearing is set for Tuesday, must address questions about her work with clients like JPMorgan Chase and the board of Morgan Stanley. “At the S.E.C., Mr. Ceresney, 41, would have to police some of the same firms he spent a decade defending. After working at the United States attorney’s office in Manhattan, he built a lucrative legal practice at Debevoise & Plimpton. At the firm, he represented the likes of Kenneth D. Lewis, a former chief executive of Bank of America who faced regulatory investigations over the bank’s hasty takeover of Merrill Lynch during the depths of the financial crisis.â€ÂÂ
Ms. White, who also built a reputation as a tenacious prosecutor, has already agreed to recuse herself for one year from most matters involving former clients. “Mr. Ceresney would probably follow Ms. White’s lead and recuse himself from certain cases, an important ethical move but also a potential hindrance to his authority.†Still, “the questions surrounding the revolving door illustrate how, even as Ms. White and Mr. Ceresney prepare to usher in a new era at the S.E.C., the agency is dogged by old concerns.â€ÂÂ
IN DELL DEAL, ICAHN STEPS IN THE WAY | The activist investor Carl C. Icahn is preparing to add his voice to the shareholder opposition to the proposed $24.4 billion buyout of Dell. Mr. Icahn is expected to reveal a major stake in Dell and, like other investors, is expected to express dissatisfaction with the price of the deal by the company’s founder, Michael S. Dell, and the private equity firm Silver Lake, DealBook’s Michael J. de la Merced reports.
Mr. Icahn’s stake in Dell amounts to roughly 6 percent, according to CNBC, which cites unidentified “trading sources.†He has already discussed the deal with advisers to a special committee of Dell’s board, Mr. de la Merced reports, citing a person briefed on the matter. “The directors had asked Mr. Icahn to participate in the process to find potential higher bids, which is scheduled to end on March 22. But Mr. Icahn refused, the person said.â€ÂÂ
The special committee, which issued a statement on Wednesday telling shareholders it had fought to get the best price, said it considered possible alternatives to the sale, including what’s known as a leveraged recapitalization. In addition, the special committee has sought to allow competing bidders to enter the fray. “Several companies already have signed nondisclosure agreements to take a peek at Dell’s books as part of the so-called go-shop period, according to the person briefed on the matter. Hewlett-Packard, Lenovo and the Blackstone Group have all expressed interest.â€ÂÂ
TIME WARNER TO SPIN OFF TIME INC. | Time Warner is spinning off its Time Inc. magazine unit into a separate, publicly traded company, after talks with Meredith Corporation ended, the Media Decoder blog reports. The move, resolving questions about what Time Warner would do with its magazines, allows the company to focus on its cable television and film business. The chief executive of Time Inc., Laura Lang, said she would depart when the spinoff of the magazine division is complete.
“The deal with Meredith fell apart in part because of Time Warner’s concern over the fate of four of Time Inc.’s famous but struggling magazines  Time, Sports Illustrated, Fortune and Money, according to three people with knowledge of the negotiations who could not publicly discuss private conversations,†Amy Chozick reports on the Media Decoder blog.
SANDBERG’S WALL STREET TOUR | Sheryl Sandberg, the chief operating officer of Facebook, is heading to Wall Street with her message about women in the workplace. She is scheduled to visit Goldman Sachs, Morgan Stanley and JPMorgan Chase for private events on Thursday and Friday to discuss her book, “Lean In,†which is scheduled to be published on Monday, DealBook reports. The events kick off her East Coast book tour.
ON THE AGENDA | Pandora Media reports earnings after the market closes. Data on consumer credit in January is out at 3 p.m. The European Central Bank, the Bank of England and the Bank of Japan announce interest rate decisions. The Federal Reserve announces the results of bank stress tests at 4:30 p.m. James Chanos of Kynikos Associates is on CNBC at 7 a.m. Robert Dudley, the chief executive of BP, is on Bloomberg TV at 8:30 a.m. Laurence D. Fink of BlackRock is on CNBC at 4:10 p.m.
HOLDER FEARS BANKS ARE TOO BIG TO CHARGE | Attorney General Eric H. Holder Jr. said on Wednesday that some financial firms had become so big that bringing criminal charges against them could threaten the economy, The Hill reports. Testifying before the Senate Judiciary Committee, Mr. Holder said: “If you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy.â€ÂÂ
Source: New York Times (By William Alden)
