(Reuters) – Gary Gensler will be named chairman of the US Securities and Exchange Commission by President-elect Joe Biden, said two sources familiar with the matter, a meeting that is likely to lead to concern among Wall Street companies on stricter regulation. 19659002] Mr. Gensler was chairman of the Commodity Futures Trading Commission from 2009 to 2014 and has since November led the elected president's transition planning for oversight of the financial industry.
His appointment as the country's premier securities regulator is expected to put an end to the four years of rule relief that Wall Street banks, brokers, mutual funds and public corporations have had under President Donald Trump's SEC Chairman Jay Clayton.
At the CFTC, Gensler implemented dramatic new barter rules enacted by Congress after the 2007 financial crisis in 2009 and developed a reputation as a stubborn operator willing to stand up to powerful Wall Street interests.
A former Goldman Sachs banker and professor at the MIT Sloan School of Management, Mr. Gensler, also oversaw the prosecution of major investment banks for rigging Libor, the billion-dollar benchmark in lending worldwide.
Mr. Gensler did not respond to a request for comment. A spokesman for President-elect Biden did not immediately respond to a similar request.
Tough line for enforcement
Progressives are likely to cheer for the appointment.
Mr. Gensler is expected to take a tough line when it comes to enforcement and to follow rules that address democratic political priorities on issues such as climate change and social justice. related risks, political expenditures and the composition and treatment of their workforce. Democrats are also keen to reverse new protections for investment councils, which they say do more harm than good, to restore some shareholders' rights and supplement compensation claims after the crisis. in the opposite direction where Jay Clayton and the Republican Republicans have ruled for several years, by expanding and improving industry information and restoring investor rights, says Ty Gellasch, head of Washington-based Healthy Markets.
A former Wall Street lawyer, the incumbent Mr. Clayton, was criticized by Democrats for his extensive ties to many companies he was commissioned to oversee and for leading an ambitious agenda to reverse a 20-year decline in U.S. stock markets with a review of dozens of rules. [1
Mr. Clayton has said that his changes maintained important protection for investors and marketplaces, and his tough stance on cracking down on cryptocurrency scams and offers was praised by consumer groups. But consumer and investor groups said that for the most part, his changes too often killed companies by weakening investor protection or reducing investor rights.
"The good news is that much of that action came late in his day that it may still be possible to reverse the course," said Barbara Roper, Consumer Federation of America Investor Protection Director. Catalog