U.S. president George Bush has named Bill Donaldson, founder of Donaldson, Lufkin & Jenrette, as the new head of the Securities and Exchange Commission.

Donaldson will replace Harvey Pitt, who resigned back on November 5, after 15 months in the office. Pitt resigned amid a controversy surrounding his judgment and independence from the industry.

The U.S. Securities Industry Association is applauding Donaldson’s nomination. “Bill Donaldson is a superb choice for SEC chairman. He has the experience, expertise, integrity, and leadership skills that the job demands. He knows the markets, he knows Wall Street, and most importantly, he knows how important it is to protect investors and to maintain their trust and confidence,” said SIA president Marc Lackritz in a statement.

Donaldson co-founded the investment bank known as DLJ back in 1959. He was DLJ’s chairman and CEO, and he also served the same roles at the New York Stock Exchange from 1990 to 1995. He has also served as dean of Yale University’s Graduate School of Management.

The Donaldson appointment also continues Bush’s policy of appointing old members of previous Republican administrations. Donaldson served as counsel to U.S. vice president Nelson Rockefeller back in 1975. And, he was U.S. undersecretary of state under Henry Kissinger from 1973 until 1975.

In making the announcement, Bush said that he also intends to boost the SEC’s budget, so that by 2004 it is almost double its present size. Donaldson made a brief statement, indicating his intent to use the SEC to help restore investor confidence.