WASHINGTON (AP) – The Senate has approved the election of President Joe Biden as Gary Gensler to head the Securities and Exchange Commission, signaling the emphasis on investor protection for the Wall Street watchdog following a regulatory downturn during the Trump administration.
On Wednesday, a 53-45 vote was held in the narrowly Democratic-controlled Senate, mostly along party lines, to approve Gensler, an expert with experience as a strong market regulator during the 2008-09 financial crisis. Gensler spent two decades as a Wall Street banker and later as chairman of the Commodity Futures Trading Committee, tightening control over the $ 400 trillion worldwide market for complex financial transactions that contributed to the Great Depression.
Gansler, now Professor of Economics and Management at MIT’s Sloan School of Management, served as Assistant Secretary of the Treasury in the Clinton administration and later headed the CFTC under Barack Obama. After staying at Wall Street Sachs for about 20 years, Gensler surprised many by being a tough regulator of big banks as CFTC chairman. He called for tougher regulations against which big banks, financial companies and companies were lobbying, and was not afraid to take up positions that challenged the Obama administration.
Gensler was the chief financial officer of Hillary Clinton in the 2016 presidential election against Donald Trump էր Obama’s economic adviser in his presidential election. Most recently, he was the leader and adviser to Biden’s transition team, which was responsible for the Federal Reserve, banking and securities regulation.
Former Wall Street attorney Wallay Clayton, who headed the SEC during the Trump administration, spearheaded an unregulated drive to ease financial market regulation as Trump promised to take office. Dodd Frank’s rules, which tightened the grip on banks և The financial crisis և Wall Street և The Great Recession, were eased.
Ohio Democrat Sen. Sherod Brown, who heads the Senate Banking Committee, called Gensler “an experienced civil servant with a strong record of holding Wall Street accountable.”
“Mr. Gensler will bring the SEC back to the people who are forcing this country to work. It will try to ensure that markets are a way for families to save; to invest in their children’s education; a down payment; “For hedge fund managers, where employees always lose,” Brown said in a statement after the vote.
Gensler comes armed with new financial technologies և cryptocurrency perception. As a professor at MIT’s Sloan School of Management, he has focused on teaching public policy, such as digital currency, the blockchain, the global accounting of digital transactions.
During a Senate approval hearing last month, Gensler said that if approved by the SEC, he would work to strengthen market transparency and accountability. “It will allow people to ‘invest confidently, protect themselves from fraud and manipulation,'” he said. “It means boosting efficiency and competition, so our markets operate for lower-cost companies with higher investor returns.” “And first of all, it means making sure that our markets serve the needs of working families.”
Democratic senators have urged Gensler to run for president, urging corporations to fully disclose their climate change risks, political costs, and aggressively punish companies for violating securities laws.
Several Republican senators used the hearings to challenge the imposition of new regulations on financial markets, threatening to stifle innovation and improperly expand the government’s authority.
Gensler also said that the SEC should look at how to protect investors who use online stock trading platforms with shocking technology tricks that attract them to more trades.
Earlier this year, the GameStop stock trading drama sparked more scandal in Wall Street. Video game stock market gains in January pushed up their price by 1,600%, although they landed after days of wild price fluctuations.