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Amended - Reuters took down their banner.  CNBC article below:

I believe Ms. Thomsen saw the writing on the wall...

NEW YORK, Feb 6 (Reuters) - The newly-installed chairman of the U.S. Securities and Exchange Commission (SEC) Mary Schapiro is searching to replace Linda Thomsen, the agency's embattled enforcement chief, the New York Post said, citing people familiar with the situation.

Schapiro is actively scanning profiles of professionals in various offices of the U.S. attorney, who litigate cases on behalf of the U.S. government under the direction of the attorney general the newspaper said, citing sources.

As the head of the unit responsible for ferreting out securities fraud, Thomsen was at the center of the fierce criticism leveled by lawmakers at the SEC this week over the Bernard Madoff scandal.  (Link to Thomsen's testimony from January 2009.)

UPDATED: Here is part of the CNBC article, linked above:

SEC head of enforcement Linda Thomsen will resign early Monday afternoon according to a source, CNBC has learned.

Former federal prosecutor Robert Khuzami will be replacing Thomsen at the SEC.

More on Robert Khuzami: pid=20601087&sid=aCZ4.zPMlVMs&refer=home

Khuzami, 52, may meet senior SEC officials as soon as next week, one of the people said, declining to be identified because the personnel talks aren’t public. He spent 11 years at the U.S. Attorney’s Office in Manhattan, where he headed the white-collar crime unit, before taking a job at Deutsche Bank in 2002.

He would join SEC Chairman Mary Schapiro, 53, at an agency scarred by its failure to detect Bernard Madoff’s alleged $50 billion Ponzi scheme. Enforcement chief Linda Thomsen, 54, who remains on the job, was scolded by lawmakers along with other senior agency managers this week for failing to be more forthcoming about the pursuit of the fraud.

Khuzami’s "deep background" in criminal enforcement would help bolster perceptions that the agency can track down rule- breakers, said James Cox, a law professor at Duke University in Durham, North Carolina. In addition, "a person familiar with the internal operations of a universal bank will be extraordinarily useful," he said.

Khuzami, didn’t respond to a telephone message seeking comment. Deutsche Bank spokesman Ted Meyer declined to comment. The bank promoted Khuzami to become its New York-based general counsel for the Americas in 2004, the Frankfurt-based company said in a statement at the time. SEC spokesman John Nester declined to comment.

This seems to be in keeping with 'change'.

Originally posted to xysea on Mon Feb 09, 2009 at 08:29 AM PST.

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