![]() The fallout will be front and center on Gensler’s agenda. Pat Toomey of Pennsylvania, the top Republican on the Senate Banking Committee.Īnd while stocks have seen a steady rise over last year, the market in recent months has also experienced high-profile blowups that have raised fundamental questions about Wall Street risk taking and investor protection. “I’m concerned he will cause the SEC to use its regulatory powers to advance a liberal social agenda focused on issues such as global warming, political spending disclosures, racial inequality and diversity,” said Sen. “We have to move ahead.”īut the SEC’s climate work will trigger major tensions between Gensler and congressional Republicans, who warn that the agency should stay out of climate policy and other social issues. “Difficulty cannot be the reason why we slow down or stop,” SEC acting Chair Allison Herren Lee said last month. While some major companies such as Apple are beginning to back mandatory disclosure, it will no doubt be a huge lobbying battle as firms try to shape the rules and avoid legal liability for inaccurate reporting.ĭemocrats see a huge sense of urgency to act. The agency under interim leadership this year has already taken steps in that direction, and the work will be able to accelerate once Gensler is in office. Elizabeth Warren (D-Mass.) at his confirmation hearing that companies “should not be able to hide” their climate risks from investors. The agency is at the heart of a growing push to police financial markets for climate risks because it can require companies to disclose their role in global warming and what kind of financial losses they may face from rising seas and other natural disasters. One of Gensler’s biggest challenges will be guiding the SEC’s efforts related to climate change, which is a top priority for the Biden administration. “We have seen that when the SEC does its job - when there are clear rules of the road and a cop on the beat to enforce them - our economy grows and our nation prospers,” Gensler told senators at his March confirmation hearing. While he first faced skepticism from the left because of his career at Goldman Sachs, Gensler emerged as one of the most aggressive financial market regulators in the wake of the 2008 meltdown as he implemented sweeping new safeguards on the trading of financial derivatives contracts.Īt the helm of the SEC, Gensler is expected to strengthen the powerful agency’s enforcement efforts and pursue historic new rules related to climate change and digital currencies. Gensler, who also served in the Clinton Treasury Department, became an icon to Wall Street reformers when he led the CFTC under former President Barack Obama from 2009 to 2014. Democrats plan to vote on another Gensler term that would allow him to stay in office into 2026. The Senate Wednesday approved Gensler for a term lasting until early June, though under SEC rules he would be able to serve through next year. “He will lead the SEC at a time when it’s become more and more obvious to most people that the stock market is detached from the reality of working families’ lives.” Gensler is an experienced public servant with a strong record of holding Wall Street accountable,” Senate Banking Chair Sherrod Brown (D-Ohio) said Tuesday. While Biden ran as a moderate and enjoyed significant industry campaign support, Gensler’s nomination is a clear signal that progressive voices in the party are succeeding in a long-running push to rein in financial market excess. Biden’s selection of Gensler to lead one of the most powerful financial regulatory agencies in Washington has set up a host of potential clashes between the administration and Wall Street.
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