I think this is another example of the utter cluelessness of harvey Pitt when it comes to the politics of the post he is holding. Whenever I see him interviewed he seems genuinely surprised that people do not take him at his word when he says that he will be tough on fraud. He seems to believe that his previous work as a lobbyist for the Accounting industry should have no bearing on his present position as the job demands are different. He wants us to believe that as soon as he started wearing the SEC hat he suddenly stopped being a shill for the Accounting industry. But the Webster hiring takes the cake. Even after the pummeling he has received how can he appoint someone with even a whiff of impropreity attatched? He seems completely politically tone deaf! And was he not loaned a political operative from the WH to make sure such obvious gaffes do not happen?

Pitt's in a nice position - his screw-ups just take the SEC's reputation down, and entangles actual reforms.

Meanwhile, he's taking what little heat there is, rather than Bush. With another year or so of screwing-up, things might get too hot for him. Then he resigns, and takes a high-paying post in the private sector. As a reward for obstructing reform, of course.

At point, we'll see a brand-new 'reformer' step in.

I don't think that he's clueless. Notice that his actions: (1) give Bush some cover (perp walks, etc); (2) obstruct reform; (3) keep the heat off of Bush.

Pitt can always resign, in a year or so, when the heat gets too bad. At that time, a new 'reformer' will be appointed, and Pitt goes to a very high-paying job in the private sector.