Given Donaldson's ties to Wall Street, he may be unwilling to confront old colleagues or change longstanding practices such as using equity research to win investment banking business, steps that are necessary to restore investor confidence, said Charles Munger, vice chairman of Berkshire Hathaway Inc.
"How often does it happen that someone who was an intimate member of an industry is really the right person to clean it up?" Munger asked. "Will anybody be as tough as I'd like to see? The answer is no."