WASHINGTON (Reuters) – Gary Gensler will be appointed chairman of the US Securities and Exchange Commission (SEC) by President-elect Joe Biden, two sources familiar with the matter said, a meeting that is likely to cause concern among Wall Street companies. -strict regulation.
Gensler was chairman of the Commodity Futures Trading Commission (CFTC) from 2009 to 201
His appointment as the country’s top securities regulator is expected to end four years of easing the rules that Wall Street banks, brokers, funds and public companies enjoy under President Donald Trump’s SEC chairman Jay Clayton.
At the CFTC, Gensler introduced dramatic new rules for trade swaps authorized by Congress after the 2007-2009 financial crisis, creating a reputation as a stubborn operator ready to oppose the powerful interests of Wall Street.
A former Goldman Sachs banker and professor at the MIT Sloan School of Management, Gensler is also leading the prosecution of major investment banks for counterfeiting Libor, a benchmark for trillions of dollars in lending worldwide.
Gensler did not respond to a request for comment. A Biden spokesman did not respond immediately.
The Progressives will probably cheer up the match.
A former Wall Street lawyer, incumbent Clayton has been criticized by Democrats for his extensive ties to many companies he has been tasked with overseeing and for pursuing an ambitious program to overcome a 20-year decline in U.S. public company lists by revising dozens of rules. .
Among the most controversial changes were measures by which critics reduced corporate disclosure to investors, weakened auditor independence, made it harder for shareholders to insist on corporate votes on issues such as climate change and racial justice, and allowed more retail investors to engage in investment. private companies.
Clayton said his changes have preserved important protections for investors and the market, and his firm stance, which suppresses cryptocurrency fraud and offers, has won praise from consumer groups. But consumer and investor groups have said that for the most part, its changes all too often make life easier for corporations by weakening investment guarantees or reducing investors’ rights.
“The top of the agency will put a program in the opposite direction that Jay Clayton and congressional Republicans have been focusing on for years, expanding and improving industry disclosures and restoring investor rights,” said Ty Gelas, head of Washington-based Health Markets.
Screenplay by Michelle Price, Edited by Rosalba O’Brien and Howard Goller