(Reuters) – President Joe Biden's election to head a key market regulator on Tuesday promised a thorough review of issues raised by the madness of GameStop Corp. shares and proposed companies may need to reveal their potential risks from climate change. Gary Gensler, the president's candidate to head the Securities and Exchange Commission, said he would investigate whether retail investors get the best prices when brokers are paid for their order flow and business practices that stimulate trading.
He also said that the agency could explore potential issues raised when a handful of companies, such as Citadel Securities, dominate the handling of retail orders.
"What happens if a company … concentrates and dominates a field? A company now has 40-50% of the retail flow, and what does it do with the pricing of capital in this country?" He said during a confirmation hearing before Senate Banking Committee.
Shares of Video Game Dealers GameStop has fluctuated in recent weeks as retailers on social media Reddit are fighting the stock for big bets from card sellers ̵
Wall Street keeps a watchful eye on the Biden administration Regulatory movements after relatively simple four years under former President Donald Trump.
Progressives see the SEC and the Consumer Financial Protection Bureau as key to promoting policy priorities for climate change and social justice and expect Gensler and Chopra, nominated by President Biden, to to lead the CFPB, would take a tough line on Wall Street.
Republicans have warned that Gensler and Mr Chopra, both experienced corporate regulators, could take a too-heavy stance on private companies if they were confirmed for the positions.
As head of the Commodity Futures Trading Com mission, Gensler developed a reputation as a tough operator willing to stand up to powerful Wall Street interests.
Mr. Gensler suggested that he seek some form of publicity on the risks of climate change. He said companies would not be able to hide these risks and investors rather than companies deciding what information would be disclosed. He also said the SEC should study whether companies would publish political spending, a long-standing priority for Democrats.
Mr. Gensler also stated that he could strive for new regulatory sharpness around cryptocurrencies, which he said may be a "catalyst for change" but is a concern for investor protection.
"It is important for the SEC to provide guidance and clarity … sometimes it is a clarity it will be thumbs up, but even if it is thumbs down it is important to give it."
Currently a Commissioner at the Federal Trade Commission, where he fought for tougher consumer sanctions for integrity and enforcement, Chopra helped establish the CFPB, which was formally launched in 2011.
Democrats pressured Chopra to revive the agency after The Trump administration weakened enforcement and several rules, while Republicans warned that the CFPB had exceeded its authority earlier Democratic control.
Mr. Chopra said one area he would like to focus on if it were to be confirmed that large technology companies would enter financial services , and what it could mean for the integrity of consumers.
He also said that he would give priority to applying fair lending regulations and monitoring. student loan market and added that it was important to carry out monetary sanctions against companies that make mistakes, both to repay injured consumers and to deter them. Catalog