Biden nominates Rohit Chopra to head the CFPB and Gary Gensler to lead the SEC
Gary Gensler will be named by President-elect Joe Biden as Chairman of the US Securities and Exchange Commission (SEC). This was reported by two Reuters sources familiar with the matter. The appointment is likely to raise concerns among Wall Street companies about stricter regulation..
Gary gensler served as Chairman of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014, and oversaw the team’s transition planning since November Joe biden to supervision of the financial industry.
His appointment as the country’s chief regulator of the country’s securities market is expected to end a four-year relaxation of the rules that Wall Street banks, brokers, funds and public companies have enjoyed under the leadership of the chairman of the Securities and Exchange Commission. Jay clayton from the team Donald trump.
CFTC Gensler implemented new swap trading rules mandated by Congress following the 2007-2009 financial crisis.
A former Goldman Sachs banker and professor at MIT’s Sloan School of Management, Gensler has also oversaw the prosecution of large investment banks for Libor rate fraud..
Gensler did not respond to Reuters’ request for comment. Biden’s spokesman also did not respond to a similar request..
Gensler is expected to take a tough stance on enforcement and adhere to rules consistent with Democratic policy priorities on issues such as climate change and social justice..
In particular, experts expect that Gensler will seek the disclosure of new corporate information about the risks associated with climate change and the costs of supporting certain politicians. Democrats are also seeking to lift new protections on investment boards that they say do more harm than good, restore shareholder rights, and end post-crisis restrictions on executive compensation..
«The agency is set to set an agenda that is the opposite of the one Jay Clayton and the Republicans in Congress have led for years, expanding and improving industry disclosure and restoring investor rights.», – stated Tai gellash, Head of New York-based Healthy Markets.
Former Wall Street lawyer, SEC Chairman-in-Office Clayton has been criticized by Democrats for his extensive ties to many of the companies he has been charged with overseeing and for leading an ambitious program to tackle the 20-year US public listing decline since revision of dozens of rules.
Among the most controversial changes were measures that critics said reduced corporate disclosure to investors, weakened the independence of auditors, made it harder for shareholders to seek corporate votes on issues such as climate change and racial justice, and allowed more retail investors to invest in private equity. company.
Clayton said the changes he initiated provided important protection for investors and the market, and his tough stance on combating fraud and cryptocurrency circulation received consumer approval. But for the most part, consumers and investors said that its changes made life easier for corporations too often, weakening guarantees for investors or restricting their rights..
«The good news is that many of these actions were taken late enough during his tenure that it is still possible to change course.», – said Barbara Roper, Director of Investor Protection of the Consumer Federation of America.