As a former adviser to several banks during her years at Debevoise & Plimpton, Ms White has has to stay out of the decision-making regarding her former clients in her new role as chief of the Securities and Exchange Commission (SEC). These decisions affect whether institutions which have been fined by the regulatory authorities are allowed to carry out certain stock market activities such as raising capital. 

Compromise and delay

Having just completed two years as chief of the Securities and Exchange Commission, Ms White has more freedom to take part in these decision than she did during that first two year period. However, she might decide that she must still stay apart from decisions on previous clients. But this means that the SEC is more likely to decide against letting the banks raise capital. Ms White would be highly likely to vote in favour of letting them continue as normal - as she has already made her position clear on this point. Without her vote, it is more likely that the SEC will be stuck with a 2-2 vote from the other members of the Commission. A 2-2 vote would block giving permission to the banks - as there would need to be a majority in favour. A compromise might be reached by another route - but it would probably involve a delay.

Ten years at the top

Miss White was chair of the Debevoise litigation department for a decade. She also spent ten years as US attorney for Manhattan. Source: Financial Times