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Stories of Interest
- Address at ICI's 2017 Securities Law Developments Conference - SEC Commissioner Stein
- New York Pension Fund Seeks More Pay Disclosure from Wells Fargo
- Wells Fargo Sanctions Are on Ice Under Trump Official
- Josh Brown: Here's How to Buy Bitcoin, But Realize It Could Be One Giant Bubble
- Trump's New Tax Plan Could Cost Citigroup $20 Billion
- Morgan Stanley Fires Former Congressman Harold Ford Jr.
- Al Franken Will Resign Over Sexual Misconduct Allegations - His Full Resignation Speech
- Ex-NFL Player Gets 40 Years for Running $10Mn Fraud
- Bitcoin Blows Past $15K, Adding $2K in Under 12 Hours
- Financial Adviser Settles Charges for Defrauding Private Equity Fund Investors
- New Cross Market Equity Supervision Report Cards - FINRA Phone-In Workshop, WebEx Presentation
- Mueller Just Crossed Trump's Red Line, With Deutsche Bank Subpoena
- Wildfire Rages Near Los Angeles
- Former Company Insider Has $4.1Mn Payday as a Whistleblower
- Audit Firm, Anton & Chia, Conducted Fraudulent Audits of Penny Stock Companies - SEC
- Mueller Subpoenas Deutsche Bank Records on Trump and Family
- Bitcoin Nearly Halfway to $400Bn Value Predicted by Winklevoss Twins 4 Years Ago
- Fidelity Clients Suffer Second Website Glitch in Week
- CBOE Beats CME to Bitcoin Futures Launch with December 10 Start
- McKinsey Senior Exec Thomas Barkin Named New Head of Federal Reserve Bank of Richmond
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NEWSLETTERS & ALERTS
SEC Nominee Clayton Vows Recusal on Matters Involved Former Clients - Please Clarify
At Wednesday's confirmation hearings, SEC Chair nominee Jay Clayton said he will recuse himself from matters involving Sullivan & Cromwell, along with Barclays Bank, Deutsche Bank, Royal Bank of Canada, Ally Financial, Pershing Square, Paul Tudor Jones and other clients he's recently represented if confirmed as Chair of the SEC. [His confirmation hearing is scheduled for March 23.]
Which raises two issues.
ISSUE ONE. Presuming that Clayton is confirmed, how quickly can (or will) the Trump administration fill the other 2 open Commissioner positions on the SEC? The 2 current Commissioners - Republican Michael Piwowar and Democrat Kara Stein - are often at loggerheads on on policy matters. Without a full complement of Commissioners - particularly when Clayton must recuse himself - deadlocks could become the norm rather than the exception. [Not to mention the absence of more diverse views on issues before the SEC.]
ISSUE TWO. When Clayton says he will recuse himself on matters involving former Sullivan & Cromwell clients, is he referring to both DIRECT and INDIRECT matters? Direct matters - e.g., consideration of guilt or innocence and possible sanctions for, say, Barclays Bank - is an obvious instance for recusal. But what happens when the SEC considers revising a rule that principally applies to big banks and not necessarily impacts smaller banks? The opportunity is such cases to ease the financial and/or administrative burdens of big banks would seem to raise grounds for recusal.
It's uncertain that either issue will be addressed, but they should because they're relevant.