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SENATE VETTING BIDEN’S CHOICE AS SEC CHIEF
- By The Financial District
- Mar 3, 2021
- 2 min read
President Joe Biden’s choice as Securities and Exchange Commission (SEC) head is coming before a Senate panel for his confirmation hearing at a moment when a roiling stock-trading drama spurred clamor for tighter regulation of Wall Street, Marcy Gordon reported for the Associated Press (AP).
Gary Gensler, a chairman of the Commodity Futures Trading Commission during the Obama administration, has experience as a tough markets regulator during the financial crisis.
More recently he has been in the academic world. Biden’s selection of Gensler to lead the SEC signals a goal of turning the Wall Street watchdog into an activist agency after the willy-nilly deregulatory stretch during the Trump administration.
The Senate Banking Committee is weighing Gensler’s confirmation in a virtual hearing Tuesday. Also being vetted and questioned is Rohit Chopra, a member of the Federal Trade Commission (FTC) who is Biden’s nominee to lead the Consumer Financial Protection Bureau (CFPB.)
Gensler is promising to work toward strengthening transparency and accountability in the markets. That will enable people “to invest with confidence and be protected from fraud and manipulation,” he said in written testimony prepared for the hearing.
“It means promoting efficiency and competition, so our markets operate with lower costs to companies and higher returns to investors. ... And above all, it means making sure our markets serve the needs of working families.”
The trading frenzy in shares of the struggling video-game retailer GameStop lifted their price 1,600% in January, though they later fell back to Earth after days of wild price swings.
A number of big hedge funds had bet that GameStop stock would fall, only to be thwarted by small investors who banded together on social media with a wave of buying that sent the price up.
The saga was portrayed as a victory of ordinary investors over Wall Street giants. But some lawmakers charged that the online trading platform Robinhood acted to favor its big Wall Street clients when it blocked its customers on Jan. 28 from buying GameStop shares.
