In a move many read as signaling a shift in emphasis, if not direction, President-elect Donald Trump has named a Wall Street attorney to run the Securities and Exchange Commission.
Trump’s pick to take the reins from current SEC Chairman Mary Jo White is Sullivan & Cromwell partner Jay Clayton.
“Jay Clayton is a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules,” Trump said a statement. “We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers.”
Clayton would appear to signal a shift in emphasis for the SEC, which under White, a former securities regulator, has emphasized enforcement.
Clayton represented Goldman Sachs in connection with the $10 billion bailout it received in 2008 in the wake of the financial crisis, as well as a $5 billion investment by Warren Buffett's Berkshire Hathaway Inc. in Goldman, according to Clayton’s bio on Sullivan & Cromwell’s website. Much of his legal work involved mergers and acquisitions, and representing firms facing U.S. investigations.
“We are going to work together with key stakeholders in the financial system to make sure we provide investors and our companies with the confidence to invest together in America,” Clayton said in the statement. “We will carefully monitor our financial sector, as we set policy that encourages American companies to do what they do best: create jobs.”
That won’t be the last SEC post Trump will need to fill; there are currently two vacancies on the five-member commission, one Republican and a Democrat. After White steps down, the SEC will be down to two commissioners, Republican Michael Piwowar and Democrat Kara Stein.
