SEC Chairman Ruder Hands In His Notice

WASHINGTON — David S. Ruder is resigning as chairman of the Securities and Exchange Commission to return to the faculty of the Northwestern University School of Law, the agency announced today.

Under Ruder’s command, the SEC conducted a massive investigtion into insider trading on Wall Street that resulted in charges against a string of financiers including speculator Ivan Boesky, junk bond wizard Michael Milken and Milken’s firm, Drexel Burnham Lambert Inc.

In a letter to President Bush, Ruder said he plans to return to Northwestern at the end of August. The date of his resignation will depend on the timing of the selection of a successor.

Ruder assured Bush that he will continue to perform his duties actively until his return to Northwestern and will work with the Administration to secure a smooth transition.

Reagan Nominee

Ruder, a nominee of former President Ronald Reagan, was appointed to the commission in August, 1987, for a five-year term.

There had been widespread speculation that Ruder would be replaced by the Bush Administration and a search already was under way for a successor.

Among the names that have been mentioned as possible successors to Ruder are John M. Richman, chairman of Kraft Inc. of Chicago; John J. Creedon, president of Metropolitan Life Insurance Co.; Harvey L. Pitt of Fried Frank Harris Shriver & Jacobsen in Washington; Thomas A. Russo, former director of the trading and markets division at the Commodity Futures Trading Comission, and SEC Commissioner Edward H. Fleischman.

Other changes also are considered likely in the make-up of the five-member commission.