Wall Street Is Set to Learn How Tough Biden’s Watchdogs Will Be

(Bloomberg) — President Joe Biden’s plans for a new era of tough Wall Street oversight will take center stage this week when two of his top regulator picks face questions from Senate Banking Committee members at a Tuesday hearing.

Gary Gensler, whom the White House has tapped to head the Securities and Exchange Commission, and Rohit Chopra, the administration’s choice to lead the Consumer Financial Protection Bureau, are likely to win confirmation, lawmakers and financial executives say. Yet their strong support from progressive Democrats means they’re certain to get pointed questions from Republican senators about their plans to crack down on businesses.

The wild rally in GameStop Corp., the explosion of blank-check companies and apps — like Robinhood Markets’ platform — that have prompted millions of novice investors to start trading are sure to be focuses. The biggest banks, hedge funds and private equity firms are also likely to be spotlighted, particularly after four years of rule cutting under former President Donald Trump.

Gensler, 63, is well known on Wall Street after leading the Commodity Futures Trading Commission during the Obama administration and making a fortune decades earlier at Goldman Sachs Group Inc. Chopra, a 39-year-old Federal Trade Commission member who helped Senator Elizabeth Warren set up the CFPB, would run an agency that Democrats want reinvigorated to protect consumers from abuses involving credit cards, mortgages and high-interest loans. Republicans would prefer it remain in the slumber that defined the bureau in the Trump era.

“There remains a sharp divide between Republicans and Democrats on the role of the CFPB in financial regulation,” said Andrew Olmem, National Economic Council deputy director in the Trump administration who is now a partner at the Mayer Brown law firm. “This is a very important nomination because a new director can significantly shift the direction of the CFPB.”

Source: Yahoo Finance

One Response
  1. April 16, 2021

Leave a Reply

Your email address will not be published.