Senate Democratic leader Harry Reid of Nevada sent Bush a letter dated Tuesday recommending Nazareth for the position as SEC commissioner, one of two Democratic seats on the panel. Reid also asked the president to name Commissioner Roel Campos, a Democrat, to a second term.

"I hope you will agree with me that Ms. Nazareth's extensive securities experience and her record of public service make her an exceptional choice for this position," Reid wrote.

By tradition, the White House often accepts recommendations for the Democratic seats from the Senate Democratic leadership.

Nazareth was the choice of Sen. Charles Schumer, D-N.Y., a member of the Senate Banking Committee. He described her Wednesday to reporters as "thoughtful, pragmatic and moderate."

Schumer said the Democrats had received "initial good vibes" from the White House concerning the recommendation of Nazareth.

She would replace Harvey Goldschmid, who plans to leave the SEC in the coming months to resume teaching law at Columbia University.

The five commissioners have split in an unusual alignment over several key issues, with Bush appointee Chairman William Donaldson siding with Campos and Goldschmid against his two fellow Republicans, Paul Atkins and Cynthia Glassman, as they have voted against some regulatory initiatives. The split makes the White House's decision on filling Goldschmid's seat critical.

Nazareth and Campos could not be reached for comment Wednesday evening.