NEW YORK (CNN/Money) - Andersen Worldwide SC, the organization that controls the Andersen partnerships around the world, will select a new CEO next Tuesday in London, Chairman Aldo Cardoso told CNN/Money Friday.

The 18 partners that make up Andersen Worldwide's board will come together at a regularly scheduled meeting. But Cardoso insists he is not a candidate for the spot.

"I am the chairman and will remain the chairman," he said.

Cardoso declined further comment on who will succeed CEO Joseph Berardino, who resigned Tuesday shortly before appearing on Lou Dobbs Moneyline on CNN.

Separately, an Andersen spokesman said Friday the company was backing out of its $217 million proposed settlement with the Baptist Foundation of Arizona due to an insurance problem.

An Andersen owned insurance company, Professional Services Insurance Co. of Hamilton, Bermuda, is unable to cover the cost of the settlement, the spokesman told CNNfn.

Andersen's lawyers are evaluating the accounting firm's possible legal moves in light of the insurance problem, the spokesman said.

Earlier this month, Andersen agreed to pay $217 million to the Baptist Foundation to settle all pending litigation related to its audits of the non-profit.

Andersen did not admit any wrongdoing with the settlement and was to have deposited the $217 million in an account controlled by the BFA Liquidation Trust by April 15.

The BFA Liquidation Trust could not immediately be reached for comment.

Cardoso made his comments about Andersen's future to CNN/Money during a press conference at which former Federal Reserve Chairman Paul Volcker introduced the new transition team at Arthur Andersen LLP, the U.S. member firm.

The team, which will focus on moving Arthur Andersen to being an audit-only firm, will be led by C.E. Andrews, head of the firm's worldwide audit practice, and Lawrence Rieger, a senior partner.

A core group of Andersen partners have backed the Volcker reforms.

"We are committed to building an audit firm of the future under the leadership and recommendations of Mr. Volcker," Larry Gorrell, a managing partner of Arthur Andersen LLP, said in a press release issued Thursday.

About two weeks ago, Andersen appointed Gorrell to head an administrative board that effectively runs the U.S. partnership. The administrative board has responsibility for the units and the firm going forward, Volcker said Friday.

Volcker's recommendations also include installing a seven-member independent board that will take control of Andersen. This board will be headed by Volcker and its members include Vanguard Group founder and former chairman John Bogle, ex-Deloitte & Touche CEO Michael Cook, former U.S. Comptroller General Charles Bowsher, former U.S. senator John Danforth, R.-Mo., past Wharton School dean Russell Palmer and retired Merck CEO Roy Vagelos.

Volcker also called for a change in Andersen's senior management and Berardino's resignation came shortly after these recommendations were made.

Andersen's 1,700 U.S. partners held a 5-hour teleconference Thursday to discuss the firm's options, but they did not vote on the reforms, Andrews said. Instead, Rieger and Andrews received a "informal sense" of interest from the partners which led them to follow through with the reforms, Andrews said.

"We are confident that a core group will go forward," he said.

On Friday, Volcker declined to comment on pending layoffs at Andersen or the status of the tax, consulting and corporate finance practices of the firm. About 60 percent of Andersen partners are in non-audit parts of the business, he said.

Chicago-based Andersen currently has 85,000 employees worldwide, including 28,000 personnel in the U.S.

"Obviously the firm will be smaller," Volcker said. "There will be a shuffling of personnel. We have every reason to believe that the firm can be viable."

Later he added that a large number of Andersen's 85,000 staff will not disappear but will also not be part of the new Andersen audit firm.

Andersen has reportedly been in talks to sell the non-audit units of the firm to rivals such as Deloitte & Touche.

Volcker also sidestepped questions as to who is currently running Arthur Andersen, something which has remained unclear, despite the installation of Gorrell's administrative board, Andrews' transition team and the expected appointment of the Volcker independent board.

"I am not in charge of Andersen at the moment," Volcker said Friday.

Andersen is ushering in reforms in response to a federal indictment against the firm. On March 14, the Department of Justice filed a one-count criminal charge against Andersen for allegedly obstructing justice when it shredded Enron documents. Since then, Andersen, once the most powerful accounting firm in the world, has lost numerous audit clients, including Sara Lee Corp., Northeast Utilities and Abbott Laboratories.

A condition to the Volcker reforms is persuading the Justice Department to soften its stance against Andersen.

Volcker said that he is now ready to meet with the Securities and Exchange Commission and the DOJ and begin talks to hammer out some sort of settlement. However, Gorrell's administrative board and Andersen's attorneys are leading talks with the DOJ, while Volcker is not involved in the indictment.

Andersen, the 89-year old accounting firm, is also the subject of several shareholder lawsuits due to its role in the Enron collapse. Andersen served as Enron's auditor for 16 years before it was fired in January. Houston-based Enron allegedly used off-the-book partnerships to hide nearly $1 billion in debt and inflate profits. Andersen, as Enron's auditor, signed off on the energy trader's financial statements.

Andersen has been in talks with Enron creditors and has offered $750 million to resolve civil claims against it which were apparently rejected. Negotiations are still going on and the parties are working through "snags" in an agreement, Volcker said.

"My sense is that everyone is interested to get the legal problems resolved," he said. "I think there is a good prospect for an agreement in principle."