The field of candidates to run the Securities and Exchange Commission is shifting as a contender drops out of the race.
Mary Miller, a senior Treasury Department official, removed her name from consideration in recent days, according to several people briefed on the matter who were not authorized to discuss the process. While some Washington insiders considered Ms. Miller a top choice, several people close to her said she was “not interested†in the job.
With Ms. Miller withdrawing, Sallie L. Krawcheck, a long-time Wall Street executive, has emerged as a potential front-runner. Over the last year, she has become a familiar face in Washington, making the rounds with lawmakers to discuss consumer issues.
The White House, which has been interviewing for the role in recent weeks, is vetting a number of possible candidates with backgrounds in finance and government.
Robert Khuzami, the S.E.C.'s enforcement director, is a favorite choice among some ag ency officials. Richard Ketchum, the head of the Financial Industry Regulatory Authority, Wall Street's self-policing organization, is also a long-shot contender. The search is still in its early stages, and the candidates could change as the White House narrows its choices.
Washington and Wall Street have been abuzz with speculation about the next S.E.C. chief since Mary L. Schapiro, the agency's current chairwoman, announced her resignation on Monday. President Obama quickly named Elisse B. Walter, a Democrat who became an S.E.C. commissioner in 2008, as the new chief of the agency.
While Ms. Walter will step into the role on a full-time basis, she has told agency officials that she plans to serve for a short time. The White House, which faces more pressing cabinet-level nominations, is expected to name an S.E.C. successor next year.
The president's choice for the job will send a strong message to Wall Street and the broader financial markets. He could se lect a candidate with a strong regulatory hand and a critical voice to help police the industry. Or the administration could opt for a compromise candidate.
Ms. Krawcheck, 48, could fit that bill. In addition to having extensive Wall Street credentials, she is known for her independent streak and consumer advocacy efforts.
Since her departure from Bank of America in late 2011, Ms. Krawcheck has stepped up her presence in Washington and even hired an aide to help her navigate the political arena. Last week, she met with key members of the Senate Banking Committee, which oversees the S.E.C. It is possible Ms. Krawcheck is being considered for other jobs other than head of the S.E.C., according to people briefed on the matter who spoke on condition of anonymity.
Still, she lacks government experience. Her banking résumé, too, may prove problematic given the anger of many in Washington and Main Street over Wall Street's role in the 2008 financial crisis.
Some liberal lawmakers are expected to raise concerns that regulators, including the S.E.C., are taking aim at some of Ms. Krawcheck's past employers. She has been personally named along with former bank colleagues in litigation stemming from her time at both Bank of America and Citigroup.
Ms. Krawcheck first started on Wall Street as an investment banker at Salomon Brothers, switching a few years later to Donaldson, Lufkin & Jenrette. She made a name for herself as an analyst at Sanford C. Bernstein, a research firm. At Bernstein, she covered the banking industry and often issued negative calls on firms like Citigroup. In 2001, she was named the chief executive at Bernstein, making her one of the top women on Wall Street.
A year later, during a scandal over Wall Street research, she became head of research and brokerage at Citigroup, a step the bank took to improve its credibility. She worked her way up at Citigroup, taking over as chief financial officer and then eventually as head of the wealth management division. But she left the bank in September 2008 after clashing with top executives who were reluctant to reimburse clients who lost money on certain Citigroup investments.
In 2009, Ms. Krawcheck landed at Bank of America, where she ran the wealth management group. Under her leadership, the unit posted steady results, a point of strength for then-troubled bank. But Ms. Krawcheck was ousted from Bank of America in late 2011 as part of a broader management shake-up.
Since then, Ms. Krawcheck has refined her voice as a consumer advocate. On Twitter, she has drawn a significant following with her conversational style and posts on investment issues. Ms. Krawcheck is on the board of Motif Investing, an online brokerage firm geared to individual investors.
She also writes a blog on LinkedIn. One recent dispatch, titled “What I Learned When I Got Fired (The First Time),†offered career guidance from her own r ocky periods.
“If you haven't been fired at least once, you're not trying hard enough,†she wrote. “As the pace of change in business increases, the chances of having a placid career are receding. And if in this period of rapid change, you're not making some notable mistakes along the way, you're certainly not taking enough business and career chances.â€
The next head of the S.E.C. faces a challenging agenda.
Ms. Schapiro, who stepped down after a difficult four-year run, overhauled the agency and brought it back from the brink. During her tenure, she revamped the enforcement division and replaced the leadership team.
But the new chairman must now tackle high-speed trading and complex financial products that have proved tough to police. The S.E.C. must also play catch up on a series of rule-writing efforts required under the Dodd-Frank Act, the sweeping regulatory overhaul passed after the financial crisis.
