President Bush is set to name former investment banker and New York Stock Exchange Chairman William Donaldson to replace Harvey Pitt as head of the SEC. Meanwhile, his expected appointment of former Goldman Sachs Chairman Stephen Friedman as chief economic advisor is now in doubt, due to some disgruntled conservative Republicans.

Donaldson co-founded the investment-banking firm Donaldson, Lufkin & Jenrette in 1959; served as head of the NYSE from 1990 to 1995; was chairman and CEO of the insurance company Aetna(NYSE: AET); and currently serves in the same role with Donaldson Enterprises, a private money management firm. He is a Bush family friend who was a classmate and co-worker of former President Bush's uncle, Herbert Walker.

Meanwhile, Friedman, the president's choice to replace Lawrence Lindsey as White House economic advisor, is apparently not a popular one in some Republican circles. One conservative group, the Club for Growth, called him a "deficit-phobic" who is not a big supporter of tax cuts. Despite such opposition, however, White House sources say Friedman is still likely to get the job.

The two appointments are expected to be officially announced later today.