” Weary of the controversy surrounding his appointment, former federal Judge William Webster quit as chairman of the new accounting oversight board before the board held its first meeting,”writes Michael Schroeder in today’s Wall Street Journal.

“Mr. Webster’s decision, conveyed in a letter to the Securities and Exchange Commission dated Nov. 11 and released Tuesday, creates even more turmoil in federal securities regulatory apparatus, which is still reeling from the resignations of SEC Chairman Harvey Pitt and SEC Chief Accountant Robert Herdman, in part over their handling of the selection of Mr. Webster.”

“The White House, meanwhile, is focusing on finding a successor for Mr. Pitt, who has said he will stay in the post until it is filled permanently or by the naming of an interim chairman from the SEC’s ranks.”

“People close to the administration said that Frank Zarb, former chairman of the Nasdaq Stock Market, has been approached by the administration, but has said he’s not interested. Other contenders include securities lawyers Ralph Ferrara and William Heyman, both former SEC officials who were mentioned as strong contenders at the beginning of the Bush presidency, as well as Betty Montgomery, Ohio’s attorney general, and Jim Comey, U.S. attorney for the Southern District in New York. All the candidates either declined to comment, or couldn’t be reached.”

“Mr. Pitt wouldn’t say specifically if he will leave to his successor the chore of finding someone else to head up the oversight board. ‘The commission will move expeditiously to name a new chairman of the Public Company Accounting Oversight Board,’ Mr. Pitt said through a spokeswoman.”

“The Democrats’ choice for the accounting-board post — John Biggs, the former chairman of TIAA-CREF, the college professors’ pension fund — suggested he remains interested in the job. ‘If asked, under the right circumstances, I might think about it,’ Mr. Biggs said.”

“Although Mr. Biggs may still have the support of the two Democratic commissioners, the bitter campaign to discredit Mr. Webster by his supporters has further harmed his chances with the three Republicans on the commission.”