Zarb Appointed To Lead NASD

WASHINGTON -- Frank Zarb, a Wall Street executive who served in the Nixon and Ford administrations, has been appointed to head the National Association of Securities Dealers, which oversees the second-largest U.S. stock market.

Zarb's appointment last Tuesday, which was expected, should lead to improved relations between the NASD and the Securities and Exchange Commission, whose chairman, Arthur Levitt Jr., was one of Zarb's partners in a brokerage firm. Zarb's son is an SEC attorney.

The NASD is in the midst of a dramatic restructuring imposed by the SEC after regulators found that the association failed to adequately supervise the Nasdaq Stock Market and protect the interests of investors.

Nevertheless, Zarb made it clear that he intends to be the boss. "The chairman and CEO is the leader of the organization and provides centralized leadership," Zarb said.