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Stories of Interest
- New Cyberattack Goes Global, Hits WPP, Rosneft, Maersk
- Deutsche Bank Said to Lose as Much as $60Mn Over Derivative Trade
- Dimon Says JPMorgan Headcount to Keep Rising Despite Automation
- RBS to Cut 443 Jobs In UK, Move Many of Them to India
- Deutsche Bank Bullish on London Despite Brexit
- Supreme Court Nears Finish With Big Cases, Retirement Rumors
- The Richest Person in Every State
- LPL Tabs Scott Seese, Former eBay Exec, as Chief Information Officer
- Fired Biglaw Associate Arrested for Trying to Extort Partners
- Canada's CIBC Completes $5Bn PrivateBancorp Buy
- Word ‘Women’ Literally Never Appears in U.S. Senate’s 142-Page Health-Care Bill
- Stephen Pierce, Goldman Sachs Global Head of Equity Markets, To Retire
- Al Gore 'Not Very Smart,’ But Became Filthy Rich Using Simple Investing Formula - Charlie Munger
- U.S. Regulators, Lawmakers Support Volcker Rule Revamp at Hearing
- Morgan Stanley Opts for Frankfurt as New EU Hub
- A New Risk for Goldman, Morgan Stanley in Stress Tests (subsc reqd)
- A Trump Bump for Law Firm of President’s Lawyer - Kasowitz Benson Torres
- JPMorgan, BofA, Goldman, Citi, Wells Fargo Pass Fed's Stress Test
- Blackstone Stock Still Trading at $31 - Its IPO Price From 10 Years Ago
- NJ Resident and NY-Based Global FX Club Charged with Solicitation Fraud, Misappropriation - CFTC
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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.