Select Page

“The Sheriff Is Coming”: Wall Street On Edge Ahead Of Gensler Appointment As SEC Chair

“The Sheriff Is Coming”: Wall Street On Edge Ahead Of Gensler Appointment As SEC Chair

The potential appointment of Gary Gensler to head of the Securities and Exchange Commission reportedly has Wall Street on edge.

Gensler, who Bloomberg notes went “from being one of the youngest partners in the history of Goldman Sachs Group Inc. to becoming a favorite of progressive Democrats”, is widely expected to be President-elect Joe Biden’s pick to head up the agency.

His arrival will likely be a stark difference from the last 4 years of Jay Clayton, as Gensler’s resume includes going to war with major financial titans when he was head of the Commodity Futures Trading Commission – and winning. Financial lobbyists sometimes simply called him “the enemy” during the 2010 Dodd-Frank Act battle. 

Justin Slaughter, a consultant at Mercury Strategies, said: “The sheriff is coming to the preeminent financial regulator in the world. It means regulation and enforcement are about to get much tougher.”

When he arrives at his post, Gensler will not only have to deal with a Fed-induced stock market mania, but also tensions with China and the growth of private equity. 

His party is counting on him to boost enforcement actions and fines against firms and executives accused of wrongdoing. As is par for the course in the Democrat playbook, he will also “face pressure to push companies to disclose political spending, climate-change risks and the diversity of their employees,” Bloomberg writes.

Graham Steele, who served as an aide to Senator Sherrod Brown of Ohio, said: “He developed a reputation for being adversarial to Wall Street because he came from the industry and understood the business so he could push back against their arguments when they were hollow.”

Ian Katz, an analyst at Capital Alpha Partners in Washington, commented: “What’s really unnerving to a lot of people is that it’s pretty clear that he doesn’t need them. He doesn’t need to go back there for a job, he’s made his money. He’s not terribly interested in who he ticks off or not and that’s very powerful.”

Gensler wasn’t an instant favorite with Democrats, either. Due to his background with Goldman Sachs, Senator Bernie Sanders tried to block his nomination for head of the CTFC by Barack Obama. But eventually, he won their favor, demonstrating his past on Wall Street would give him an inside edge to regulating effectively. He was aggressive in pushing for Dodd-Frank and turned the CTFC into a powerhouse by pushing employees at the regulator to work ferociously.

In fact, “a survey of federal employees at the time named the derivatives regulator as one of the worst places to work among small agencies, giving it low marks for work-life balance, pay and quality of leadership,” Bloomberg said. 

He also expanded the CTFC’s jurisdiction and put a regime in place to help regulate derivative transactions involving American banks that were handled in foreign countries.

Tyler Gellasch, a former SEC aide, concluded: ”At a time when many are questioning whether capitalism can really work for everyone and address huge societal challenges like racial justice and climate change, the importance of the SEC becomes enormous: it sets the rules for companies and their investors.”

Gensler is currently a professor of business at MIT’s business school. 

Tyler Durden
Fri, 01/15/2021 – 14:24


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

-> Click Here to Read the Original Article <-

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Welcome

Bringing together a variety of news and information from some of today’s most important libertarian thought leaders. All feeds are checked and refreshed every hour and pages auto-refresh every 15 minutes. External images are deleted after 30 days.

Time since last refresh: 0 second

Publish Your Own Article

Follow The Libertarian Hub

 

Support Our Work

Support the Libertarian Hub by tipping with Bitcoin!

Send BTC:
19PU2K7448gKxAvisR5cF6X5RquYfWu5vZ

Weekly Newsletter

Newsletter Signup

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!

Weekly Newsletter SignupTop 5 Stories of the Week

Subscribe to our newsletter to receive a weekly email report of the top five most popular articles on the Libertarian Hub!