Before taking reigns as SEC chair, Gensler must pass a full Senate vote, where democrats maintain a slim majority.“I do think he’s going to try to send a message to whatever subset of the industry he is focusing on.” Gensler “got a lot done because he made a big splash” leading the CFTC, said Joe Weinstein, head of the securities and shareholder litigation practice at law firm and lobbying group Squire Patton Boggs.Gensler has made few public statements of his views on PE, but the SEC could return to large, headline-making fines against private equity, which became less common under Jay Clayton, who led the agency from 2017 through 2020, according to The Wall Street Journal.Prior to Biden’s nomination, Gensler led the Commodity Futures Trading Commission throughout much of the Obama administration, where he revitalized the agency’s enforcement division.The Senate Committee on Banking, Housing and Urban Affairs has set the nomination hearing for Biden’s pick for SEC Chairman, Gary Gensler, for March 1.Biden’s pick to lead the SEC will appear before the Senate next week ahead of a vote that would cement him at the agency’s top position, an appointment that could presage tougher oversight of the financial industry.Warren has been a longtime critic of PE, which she has tried to reign in through legislation, including the Stop Wall Street Looting Act of 2019, despite evidence showing companies owned by PE firms create jobs faster than the wider business community.During the hearing, Warren targeted PE firms, saying they “get rich off of stripping assets from companies, loading them up with a bunch of debt, and then leaving workers, consumers, and whole communities in the dust.”.Adeyemo previously served in the Obama administration as a deputy national security advisor and deputy director of the National Economic Council.FSOC is a government organization composed of the nation’s top financial regulators created by the Dodd-Frank Act in 2010 to identify and monitor risks to the U.S.“They are issues that I care about personally and I look forward to working with the secretary on those issues, and also working with you to address them going forward.” “Some of these are regulatory but I think we have a number of other tools that we can use also to address these challenges,” Adeyemo replied to Warren.Elizabeth Warren, D-Mass., asked if he was willing to use the Treasury’s Financial Stability Oversight Council, or FSOC, as a tool to address economic inequality-including recommending more regulatory scrutiny of private equity funds. Wally Adeyemo, President Biden’s pick for deputy secretary of the Treasury, fielded questions from lawmakers at his nomination hearing on Tuesday.An Obama-era adviser who will assist Treasury Secretary Janet Yellen to shape the nation’s financial policy if confirmed said he would consider using tools at the department to impose stricter regulations on private equity if it addresses inequality in low-income communities.Treasury Nominee Considers Tighter Private Equity Regulation Finally, we summarize former SEC Chairman Jay Clayton’s next role, and a report showing how a government program helped private capital dollars reach small businesses. Biden’s SEC pick may also bring restrictions to the financial industry, according to experts. We also focus on the Securities and Exchange Commission, which learned its likely future chairman will have a hearing next week. In this week’s roundup, we look at the Treasury, whose incoming deputy secretary said he would consider tougher regulation on PE in the future. Private equity and other investors may look forward to tighter regulation in the months and years ahead, if incoming Biden administration appointments are any indication.
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