WILL IT FINALLY HAPPEN?

WASHINGTON (Reuters) - Support for U.S. Securities and Exchange Commission (news - web sites) Chairman Harvey Pitt is waning as the White House considers a call for his resignation amid political furor over his agency's accounting oversight, The Washington Post reported on Saturday.

The White House is considering asking Pitt to resign or may wait and allow him to step down after the Nov. 5 congressional elections, the paper reported, citing Republican sources.

The report cited rising White House dismay over controversy stirred up by Pitt's appointment of former FBI (news - web sites) chief William Webster and other members of the new Public Company Accounting Oversight Board.

Pitt came under heavy fire on Thursday when it emerged he had failed to tell other commissioners and the White House before last week's vote to make Webster chairman that Webster had been involved with a company facing accusations of fraud.

President Bush (news - web sites) could strip Pitt of his chairman's title, but cannot force him to leave the agency, the paper reported.

The White House on Friday publicly reiterated its support for Pitt, while Republicans in Congress were noticeably measured. Democrats continued to demand he step down as SEC staffers privately complained of turmoil at the top becoming a distraction. (full story)

Hmm. As with the backing off on Iraq rhetoric in the UN a few weeks ago, I wouldn't be the least bit surprised if a Fox News headline comes up that reads: "White House: No talk of Pitt resignation". I suppose that's how we'll know when he's gone.

UPDATE: Fox News.com has an AP story saying that the White House is "perturbed" at Pitt. It's buried at the bottom of the "politics" section . . . while "Pentagon pumps up reporters" lingers among the headlines.