In a surprise move, Securities and Exchange Commission Chairman William Donaldson said late Wednesday that he will step down on June 30 after two and a half years at the helm, prompting President Bush to nominate California Rep. Christopher Cox, a Republican, as his replacement.

Due to the wave of corporate scandal that has pervaded Wall Street, Donaldson pushed through more stringent rules governing mutual funds, hedge funds and stock trading and pricing. This came as a surprise to many in the money management industry, as Donaldson's record initially indicated that he might espouse their views, rather than those of regulation-oriented lobby groups.

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