On Jan. 4, Walter “Jay” Clayton was nominated by Trump for the head position of the U.S. Securities and Exchange Commission. The SEC is responsible for financial crime, thus dealing with fraud and ensuring fair game in capital markets. Therefore sparking controversy, considering Clayton being a Wall Street lawyer with extensive experience in negotiating regulations for banks and financial institutions. The Republican party has fervently backed this decision in hopes to abolish many of the restrictions placed on corporations throughout the years, but Democrats remain weary.
Those supporting Clayton’s nomination see him as a qualified individual harboring the ability to reduce current regulations placed on corporations that big businesses deem to be stalling growth.
“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,” said Trump in a statement regarding his nomination.
Yet, the Clayton nomination ironically symbolizes a move similar to that of President Obama’s hiring of Mary Jo White, current head of SEC, considering the ties White also held to Wall Street that many believed impaired White’s ability to efficiently run the SEC. However, motives are reversed between White and Clayton; White focused on implementing more regulations, which angered many Republicans, while Clayton would target diminishing corporate regulations, which raises concerns for Democrats.
Critics of the Clayton nomination argue that a Wall Street insider will inevitably prioritize Wall Street elites rather than working class families. Clayton has represented a handful of banks that have been accused of corruption through fraudulent toxic mortgage deals, such as JPMorgan Chase, Barclays, Bear Stearns, and the infamous Goldman Sachs.
Goldman Sachs holds an unprecedented amount of influence under the Trump administration, and many fear with Clayton as head of the SEC that influence is pushed over the edge. Clayton is a partner to Sullivan & Cromwell, which has long been the go to law firm of Goldman Sachs. Gary D. Cohn, Trump’s economic policy advisor, is Goldman’s number 2 executive. Treasury secretary Steven T. Mnuchin is a former Goldman trader. Chief strategist Stephen K. Bannon is a former Goldman banker.
“Mr. Clayton’s selection is great news if you happen to run a big bank or manage a hedge fund, but you’re out of luck if you want to see tough rules on Wall Street and bankers held accountable when they break the law,” said Senator Elizabeth Warren.
As the swamp continues to grow each passing day, one can only sit back and hope the fiscal rights of all American citizens are eventually deemed valid.
