First impressions of President Trump’s pick to
be Securities and Exchange Commission (SEC) chairman suggest he
is likely to trigger an enforcement rollback. But widespread
rollbacks are unlikely, however, with a shift in SEC priorities
a more viable outcome.
Jay Clayton officially took office on May 2, after being
approved by the Senate. Having worked with as many as eight of
the 10 largest US banks during his tenure at Sullivan &
Cromwell, the chairman’s Wall Street background
raised concerns among Democrats that he could have a
significant conflict of interest. In addition, Clayton has been
fast to fill a number of key roles at the SEC with individuals
from a similar background – for instance, general
counsel Robert Stebbins and chief of staff Lucas Moskowitz.
A priority shift
Given the seven core principles outlined in
Trump’s executive order for financial regulation,
and his repeal and replace rhetoric, the...