U.S. Senator Elizabeth Warren railed against Securities andExchange Commission (SEC) Chair Mary Jo White's performance, sayingher tenure at Wall Street's top regulator has been marked by weakenforcement and sluggish rulemaking.

“Your leadership of the commission has been extremelydisappointing,” Warren, a Massachusetts Democrat, wrote in a letterdated June 2.

White has come under increasing scrutiny in recent months as theagency struggles to finish rules that were required by Congressmore than five years ago. According to Warren, White has continueda pattern of letting banks settle fraud cases without admittingwrongdoing and with little disruption to their businesses.

White has also failed to address conflict-of-interest concernsrelated to her husband's work as an attorney for Wall Street firms,Warren wrote. The senator asked White for a list of enforcementcases she was recused from because her husband worked on them as anoutside attorney.

John White, a partner at Cravath, Swain & Moore, counselscompanies on their disclosure and accounting requirements,according to the firm's website. Mary Jo White told the SenateBanking Committee in March 2013 that her husband's legal workwouldn't interfere much with her own duties as chair.

In response, she said Tuesday that the agency has advanced morethan 30 regulations required by Congress and last year levied morethan $4 billion in penalties against defendants accused ofmisconduct.

“Senator Warren's mis-characterization of my statements and theagency's accomplishments is unfortunate, but it will not detractfrom the work we have done, and will continue to do, on behalf ofinvestors,” White said.

White House press secretary Josh Earnest said Tuesday thatWhite, a former U.S. Attorney for Manhattan who later defendedcorporate clients, has “a very strong track record.” PresidentBarack Obama is confident she shares his priorities for regulatingWall Street, Earnest said.

“The president does continue to believe that she is the rightperson for the job,” Earnest said when asked about Warren'sletter.

Warren criticized White for not yet finishing a regulation thatwould require companies to report how much more chief executivesearn than the median worker. The rule is required under the 2010Dodd-Frank law.

White told senators last year that she expected to complete therule by the end of 2014. In a recent meeting with Warren, Whitesaid she hoped it would be done by the fall of 2015, according tothe letter.

Warren also faulted White for sidestepping Democrats' calls torequire companies to report their political spending—a projectWhite removed from the SEC's regulatory agenda in November2013.

Granting Waivers

Warren called on White to curb the practice of granting waiversthat allow banks to continue business as usual after they settlecases with the SEC or criminal authorities. The waivers allow banksto continue to manage mutual funds, raise money for hedge funds,and issue their own debt with less oversight.

And the Massachusetts senator said the SEC should seek moreadmissions of fault as a condition of settling charges againstcompanies. White said in June 2013 that the SEC would makecompanies admit wrongdoing more often. It has required admissionsin 19 cases, according to Warren.

“I am disappointed that you have not been the strong leader thatmany hoped for—and that you promised to be,” Warren said in theletter. “I hope that you will step up to the job for which you havebeen confirmed, and that you will guide the SEC once again to meetits core mission of protecting investors and maintaining fair,orderly, and efficient markets.”

–With assistance from Silla Brush and Toluse Olorunnipa inWashington.

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