Wall St Uneasy With Biden’s SEC and CFPB Appointments
Wall Street is feeling a bit uneasy with President-elect Joe Biden’s SEC and CFPB appointments. On Monday, Biden’s transition team announced two consumer advocates will lead top financial agencies. Former CFTC commissioner Gary Gensler will head the Securities and Exchange Commission (SEC). Meanwhile, FTC member Rohit Chopra will lead the Consumer Financial Protection Bureau (CFPB). For Wall Street, this means tougher days and increased oversight are ahead.
RELATED: Biden’s Transition Team Appointments Shake Up Wall Street
Gary Gensler and Rohit Chopra
As Commodity Futures Trading Commission chair from 2009 to 2014, Gensler tightened controls for the industry after the financial crisis. He implemented new swap trading rules made by Congress.
Gensler became a hard-nosed regulator that often stood up against Wall Street. As chairman of the SEC, progressives expect Gensler to pursue new corporate disclosures on climate change risks. He will also look into political campaign contributions and managing company workforces. Gensler will also look into continuing the moves to curb excessive executive compensation.
Meanwhile, Chopra helped form the CFPB, also after the financial crisis. He served as the first student loan ombudsman. At the FTC, Chopra pushed for tougher rules for consumer privacy and competition. He also has his eyes set on reviewing debt collection and abusive lending rates. Also, Chopra needs to address student debt and gaps in minorities’ credit access.
As expected, progressives hailed the choice of the two officials. They see both the SEC and CFPB as important agencies that can help with social justice and climate change. In particular, the “CFPB has an incredibly important job to do, including stopping financial rip-offs,” according to Lisa Donner, of Americans for Financial Reform. “It also has an urgent role to play in helping families survive and recover from the pandemic-induced economic crisis,” she added.
The new Democrat majority opens up the Senate Banking Committee leadership to Senator Sherrod Brown (OH). He opposed President Donald Trump’s relaxing of Wall Street rules. He said the CFPB “plays a leading role in combating racial inequities in our financial system.” Meanwhile, Gensler’s hiring hopes to “hold bad actors accountable” and put “working families first.”
Meanwhile, Republicans find the choices are pandering. Leading GOP officials criticized Biden for kowtowing to progressives and risking divisiveness. Representative Patrick McHenry (NC), a leading Republican in the House Finance panel, said Chopra’s nomination leads to the far-left. While acknowledging Gensler “The Biden team is pandering to members of the far-left,” Patrick McHenry, lead Republican on the House of Representatives finance panel said of Chopra.
He did have mixed reviews of Gensler’s nomination, saying that“Gary’s acceptance of financial technology and cryptocurrency is a welcome change from many Democrats who avoid innovation just because they don’t understand it.” But, he also warned that Gensler should “resist pressure to commandeer our securities disclosure regime to try to fix non-economic issues or social problems.”
Removing the Current CFPB director
Chopra’s nomination means Biden needs to fire current CFPB director, Kathy Kraninger. Last year, the Supreme Court ruled that the CFPB post is an at-will position. Add Biden’s announced nomination of Chopra, and Kraninger will have to go. Richard Hunt, Consumer Bankers Association CEO, thinks that Biden shouldn’t act immediately. “CBA does not believe it is in the best interest of consumers to have a new Director with each change in Administration. This whip-saw effect will stifle innovation and prevent consistent regulations,” Hunt said.
Watch the CBS News reports on President-elect Joe Biden names key financial nominees Rohit Chopra and Gary Gensler:
Do you support Biden’s SEC and CFPB appointments? What do you think happens to Wall Street after this development? Let us know what you think by sharing your thoughts below.
Democrats do not want the middle class to be wealthy. Its ok if they are the rich but not you. The stock market enables the middle class to (over time) use conservative principles to gain wealth. The Demons will put this country down the tube. Were almost there.
I don’t support anything that Biden does or says. Have no faith in this man whatsoever. Our beautiful country will be destroyed by this administration. Not my president or politician. How you vote for a person who has done zero for 50 years and trust his decisions as America Commander in Chief????? No No No. We’ll be in trouble within a year under Biden.
#Facts! 100. The democratic socialists will ruin this country. Never can they be trusted. Their policies will bloodsuck the ppl. dry and their individual freedoms taken away. The ppl will have to revolt during and if it continues after this administration unless The President (Trump) pulls a rabbit out the hat.
We don’t need these agencies or more regulations shrink the gov’t it is too big !😠
These Dems ought to be in damnation they care only about themselves and not as the group but individually what is in it for each one. They are so old they don’t care what happens to America 🇺🇸!!! Just themselves they figure they will die soo so live it up. But boy after they die is when they will get their true reward in hell for eternity!!!!! But we have to suffer because of the cheating stealing and all the lies!!!!!! We need to pray to God to help us to get them back to our true founding father!!! GOD!!!!!!!
I do not trust the democtatic presidence! There is more Sociialist:communist people in positions in our government tan has ever been know in power today!! That, unfortunately, means that we the people will have no say in the way we must live our lives. This terrifies me more than anything I can think of. Obmersaid on tape that we the people did not have enough since to control OUR money! WE THE PEOPLE have worked for the money that we do have, no matter how small it may be, and if we survive, even proper on what money w e have, itt is none of his business. Every legal resident in our OUR country has the freedom to do what they choose with their earnings. I am so disappointed in every person that does not realize this. Wealthy people have nothing to worry about! 🙏🏻🇺🇸♥️🙏🏻🇺🇸♥️🙏🏻🇺🇸💗🙏🏻🇺🇸💗 to ALL!!!
Sounds like all these replies are about trump not Biden because trump doesn’t care about anyone but himself and he never met a low to middle class person so he is only for the rich but that might change since he is going to declare bankruptcy again since the banks are to call for payment of all his loans. Think about your comments.
Yes, I agree with “Retrumplican.” Every comment before his/hers is a carbon copy of trump. He has Never cared for or liked middle-class, poor, and minorities. If you’ve noticed,the Only minorities he’s ever seen associating himself with are Rich ones. His Narcissistic Mentality Only allows him to do, say, react, and focus All of his goals on Himself. He’s also one of the Biggest FAKES to ever make it into politics. He’s taunted being a billionaire, for decades. The fact is: he OWES banks, cities, former employees, private contractors, and private investors at least a BILLION dollars. Don’t be fooled and Conned, by “Don the Con,” Final remark: anyone and everyone who has fallen victim to him, losses their reputations, their livelihood, and in a lot of cases their lucrative careers. That demon is JINX!! Just ask Lindell, the “MyPillow Guy.” He’s probably one more million dollar CANCELLED contract, because of his connection and support of “Don the Con,” away from BANKRUPTCY.