Big Changes
Investors appear to be losing faith that Trump will succeed in rolling back financial regulations. The KBW Bank Index of 24 companies is down for the year after surging 30 percent in the fourth quarter of 2016.
If Clayton does want to make big changes quickly, he’ll need to win the backing of the SEC’s lone Democratic commissioner, Kara Stein. The five-person commission is down to just three members, allowing Stein to block Republicans’ efforts under the agency’s quorum rules by not showing up at a vote. While her term expires in June, she can stay on for about 18 months more if she’s not replaced by then. Trump hasn’t indicated who he’ll pick to fill the open slots or to replace Stein.
In a statement Tuesday, Clayton said: “I look forward to working closely with my fellow commissioners and the dedicated career staff at the SEC to serve the American public and advance the SEC’s important mission.”
Clayton is preparing to appoint senior officials to lead key SEC units, including those that investigate wrongdoing, oversee corporate filings and market structure, according to people familiar with the matter.
Those under consideration include Jamie Selway, head of execution services at Investment Technology Group, to lead trading and markets and William Hinman, a partner at Simpson Thacher & Bartlett, to run the corporation finance unit, according to the people. Steven Peikin, a partner at Sullivan & Cromwell, also has been under consideration to head the enforcement division.
This article was provided by Bloomberg News.