Arthur Levitt

Levitt grew up in a Jewish family in Brooklyn.[https://www.washingtonpost.com/wp-srv/business/longterm/ethics/levitt.htm Washington Post: "The Quiet Crusader at the SEC" By Brett D. Fromson] September 28, 1997 Levitt's father, Arthur Levitt Sr., served as New York State Comptroller for 24 years and was sole trustee of the largest pension fund in America at the time. Levitt attended Brant Lake Camp, a summer camp for boys in the Adirondacks. He attended and graduated from Poly Prep Country Day School in Brooklyn in 1948.

He graduated Phi Beta Kappa from Williams College in 1952, before serving for two years in the Air Force. He first worked as a drama critic for The Berkshire Eagle, and after the Air Force, he was with Time-Life for five years before selling cattle and ranches as tax shelters.{{Citation needed|date=September 2020}}

In 1963, Levitt joined the brokerage firm Carter, Berlind & Weill, founded three years earlier by Sanford I. Weill.[http://www.businessweek.com/2000/00_39/b3700006.htm Arthur Levitt: Career Highlights] {{webarchive |url=https://web.archive.org/web/20081007193631/http://www.businessweek.com/2000/00_39/b3700006.htm |date=October 7, 2008 }}. Bloomberg BusinessWeek Levitt's name was eventually added to the firm's when it was renamed Cogan, Berlind, Weill & Levitt in the mid-1960s; through a series of mergers the firm eventually evolved into Shearson Loeb Rhoades. This experience with retail customers was a source of his interest in the small investor. After sixteen years on Wall Street, Levitt became the chairman of the American Stock Exchange (AMEX) in 1978. In 1989, he left the AMEX to serve as Chairman of the New York City Economic Development Corporation until 1993.{{Citation needed|date=September 2020}}

Before joining the SEC, Levitt owned Roll Call, a newspaper that covers Capitol Hill, which he purchased from the paper's founder, Sid Yudain, in 1986.{{cite news|first=David|last=Rapp|title=Roll Call Founder Sid Yudain Dies at 90 |url=http://www.rollcall.com/news/roll_call_founder_sid_yudain_dies_at_90-228552-1.html |work=Roll Call |date=2013-10-21 |access-date=2013-11-17}} The newspaper was eventually sold to The Economist for $15 million in 1993.{{Cite news|url=https://www.washingtonpost.com/business/economy/arthur-levitts-life-of-reinvention/2017/02/17/e45849ca-f2c9-11e6-8d72-263470bf0401_story.html|title=Arthur Levitt's life of reinvention|date=17 February 2017|newspaper=The Washington Post}}

Levitt was appointed to his first five-year term as Chairman of the SEC by President Clinton in July 1993 and reappointed in May 1998. He left the Commission on February 9, 2001, and was succeeded by Harvey Pitt. Levitt has said that he first learned of his being considered for the job from The Wall Street Journal.{{Citation needed|date=September 2020}}

At the time Levitt came to the SEC, the Financial Accounting Standards Board (FASB) had proposed requiring companies to record stock options on their income statements, which split the accounting industry and was opposed by many in the American business community. According to a Merrill Lynch study, expensing stock options would have reduced profits among leading high-tech companies by 60% on average. Congress began to exert pressure on the FASB, and on May 3, 1994, the Senate, led by Democratic Senator Joe Lieberman, offered a non-binding resolution urging FASB not to adopt the proposed rule; the vote in favor was 88–9. Concerned that insensitivity to this sentiment in Congress might threaten FASB as an independent standard setter, Levitt urged the FASB to not go ahead with the rule proposal. He later said this "was probably the single biggest mistake I made in my years at the SEC."{{Cite web| url=https://www.pbs.org/wgbh/pages/frontline/shows/regulation/congress/| title=Congress and the Accounting Wars| access-date=2006-10-15| work=Bigger Than Enron| publisher=FRONTLINE| archive-url= https://web.archive.org/web/20060923042313/http://www.pbs.org/wgbh/pages/frontline/shows/regulation/congress/| archive-date= 23 September 2006 | url-status= live}} Containing excerpts from FRONTLINE's interviews.

In September 1998 at New York University, he gave a speech entitled "The Numbers Game". It addressed five ways in which corporations were managing earnings (big bath charges, creative acquisition accounting, cookie-jar reserves, materiality, revenue recognition). In his speech, Levitt advocated improving the transparency and comparability of financial statements.{{Citation needed|date=September 2020}}

In 1997, the SEC under Levitt's leadership approved the exemption of some Enron partnerships from the tight accounting controls of the Investment Company Act of 1940. Without this exemption, critics maintain, the company would have been constrained by strict rules found in 1996 legislation that would have prohibited certain foreign investments and the shifting of debt to its foreign subsidiary shell companies.{{Citation needed|date=September 2020}}

During Levitt's tenure at the SEC, he was widely viewed as a pro-investor advocate and received favorable press coverage.

Levitt serves on the Board of Directors for RiskMetrics Group.{{Cite web|url=https://www.finextra.com/pressarticle/3854/riskmetrics-appoints-former-sec-chairman-arthur-levitt-to-board-of-directors|title=RiskMetrics appoints former SEC chairman Arthur Levitt to board of directors|date=2005-04-04|website=Finextra Research|language=en|access-date=2020-04-27}}

In 2005, Levitt was named a special advisor to the American International Group's board of directors and the board's nominating and corporate governance committee following the resignation of CEO and Chairman Maurice "Hank" Greenberg, who left after an investigation into the firm's accounting practices by New York Attorney General Eliot Spitzer.{{Citation needed|date=September 2020}}

Levitt oversaw an audit published in August 2006, by Kroll Inc. – where he is a consultant – describing how the City of San Diego had allowed a pension deficit of $1.43 billion. The report blamed around 30 city officials, including five incumbent council members. Kroll charged the City of San Diego $21 million for the report, with Levitt's time billed at $900 per hour.{{cite news|url=http://legacy.utsandiego.com/uniontrib/20050809/news_1m9kroll.html|title=Spotlight is on consulting firms, Ewell over costs|newspaper=San Diego Tribune|date=August 9, 2005}}{{Dead link|date=June 2020 |bot=InternetArchiveBot |fix-attempted=yes }}

In January 2001, Levitt received the "Award for Distinguished Leadership in Global Capital Markets" from the Yale School of Management.{{Citation needed|date=September 2020}}

The Arthur Levitt State Office Building in downtown Manhattan was named for him until it was sold to private developers in 2000.{{Citation needed|date=September 2020}}

{{Portal|Biography}}

• Securities and Exchange Commission appointees

{{Reflist}}

• {{cite news| last=Labaton| first=Stephen| title=Exemption Won in 1997 Set Stage For Enron Woes| newspaper=New York Times| date=January 22, 2002}}
• {{Cite journal|date=June 2005 |title=Arthur Levitt |journal=On Wall Street Magazine |url=http://www.onwallstreet.com/article.cfm?articleid=2951 |access-date=2006-09-11 |url-status=dead |archive-url=https://web.archive.org/web/20060911181350/http://www.onwallstreet.com/article.cfm?articleid=2951 |archive-date=September 11, 2006 }} Levitt's biography as told by him to the editorial staff.
• {{Cite web| url=https://www.sec.gov/about/commissioner/levitt.htm| title=SEC Biography: Chairman Arthur Levitt| publisher=U.S. Securities and Exchange Commission| access-date=2006-10-15| archive-url= https://web.archive.org/web/20061020070830/http://www.sec.gov/about/commissioner/levitt.htm| archive-date= 20 October 2006 | url-status= live}}

• {{Cite book| last=Levitt| first=Arthur| author2=Paula Dwyer| title=Take On the Street: What Wall Street and Corporate America Don't Want You to Know. What You Can Do to Fight Back| publisher=Random House| isbn=978-0-375-42178-5| id=(hardcover); {{ISBN|978-0-375-71402-3}} (trade paperback); {{ISBN|978-0-553-75694-4}} (abridged audio CD)| date=October 2002| url-access=registration| url=https://archive.org/details/takeonstreetwhat00levi}}
• {{C-SPAN}}

{{S-start}}

{{s-gov}}

{{s-bef| before=Richard C. Breeden}}

{{s-ttl| title=Securities and Exchange Commission Chair| years=1993–2001}}

{{s-aft| after=Harvey Pitt}}

{{End}}

{{SEC}}

{{Dot-com Bubble}}

{{Authority control}}

{{DEFAULTSORT:Levitt, Arthur}}

Category:1931 births

Category:Living people

Category:Businesspeople from Brooklyn

Category:Journalists from Brooklyn

Category:Jewish American government officials

Category:Members of the U.S. Securities and Exchange Commission

Category:Williams College alumni

Category:American financial businesspeople

Category:American male journalists

Category:American International Group

Category:Goldman Sachs people

Category:The Carlyle Group people

Category:Poly Prep alumni

Category:Charles H. Revson Foundation

Category:Clinton administration personnel

Category:George W. Bush administration personnel