Trump nominates Wall Street Lawyer to lead SEC
Jan 05, 2017 03:01 PM EST
Wall Street lawyer Jay Clayton has been nominated by President-elect Donald Trump to head the Securities and Exchange Commission (SEC). The nomination has placed another financial industry insider in a key position of Trump's administration.
Clayton, as chairman of the SEC, would be helping police many of the same large banks he has represented for years including Goldman Sachs and Barclays. Trump's transition office said that apart from playing a key role in Trump's efforts to dismantle parts of 2010's financial reform legislation, he would also bring "decades of experience helping companies navigate complex federal regulations" and will play an important role in unleashing the job-creating power of the country's economies.
According to Trump, Clayton is a "highly talented expert on many aspects of financial and regulatory law" and "will ensure our (American) financial institutions can thrive and create jobs while playing by the rules at the same time."
Trump also said that they need to undo many regulations of which "have stifle investment in American businesses, and also to restore oversight of the financial industry in a way that does not harm American workers.
The nomination has drew immediate rebuke from progressive groups which have been critical of Trump's track record of nominating Wall Street insiders for high-level positions, despite being harsh to the industry during the presidential campaign.
Prior to Clayton, Trump has nominated a 17-year veteran of Goldman Sachs Steven Mnuchin, to be Treasury secretary, and Stephen K. Bannon as chief strategist, who previously worked on mergers and acquisition deals for the bank.
Last December, the President-elect said he would nominate Gary Cohn, Goldman Sachs' president to lead the powerful National Economic Council.
Co-founder of Progressive Change Campaign Committee Adam Green said that Trump supporters did not vote to let "the fox guard the henhouse on Wall Street." On the other hand, Rep. Maxine Water (D-Calif.), ranking member of the House Financial Services Committee, said
Trump's newest nomination of a Wall Street insider to regulate Wall Street proves that he has "no intention of getting tough on Wall Street."
The Senate has confirmed that Clayton would replace Mary Jo White, who announced shortly after the election that she will step down.
During White's tenure as federal prosecutor, the SEC has been a central player of the Obama Administration's effort to rein in big banks following the 2008 financial crisis and prevent future taxpayer bailouts of the industry, according to The Washington Post.