Commentary: WASHINGTON, D.C. – U.S. Senator Martin Heinrich (D-N.M.), Ranking Member of the Joint Economic Committee, released the following statement today regarding his vote on the nomination of Jay Clayton to chair the Securities and Exchange Commission (SEC):
"President Trump’s choice to head the SEC – an independent agency charged with making sure Wall Street is kept in check – is not the enforcement cop that hard-working Americans and our recovering economy need at this moment. Quite the opposite. Mr. Clayton has been instrumental in helping the banking industry avoid regulators and game the system in their favor. If confirmed, I believe he would continue to put the interests of Wall Street first.
"The economic and financial security of working families in New Mexico and across the country cannot be put at risk with a Wall Street insider steering the SEC and looking out for his former clients while ignoring the needs of hard-working Americans and their investments. We need to ensure that financial markets operate fairly and America’s economy is heading in the right direction for all Americans."
As a Wall Street lawyer, Mr. Clayton has been actively involved in advising and representing the financial industry in litigation against the SEC. On numerous occasions, he has been at odds with and has attacked the very agency he has now been nominated to lead. At one point he even called the SEC “zealous” for enforcing laws that deter bribery of foreign officials by American companies. In addition, his numerous conflicts of interest will require him to recuse himself from many issues before the SEC, limiting his effectiveness as chair.
The SEC is in charge of protecting all investors, maintaining fair and efficiency markets, and helping generate funding for business investments. The SEC promotes full public release of market-related information for all investors and takes necessary enforcement action against individuals and firms committing fraud or violating other securities laws.