Dems attack Trump SEC pick’s ties to Wall Street

Top Democrats on Capitol Hill on Wednesday criticized President-elect Donald Trump’s pick to lead the Securities and Exchange Commission (SEC), focusing on his career working with major businesses and Wall Street firms.

Jay Clayton, a partner at law firm Sullivan & Cromwell, has represented corporate giants in business mergers and acquisitions, as well as public offerings. He’s also helped corporations and Wall Street firms settle or fight cases brought against them by the federal government. 

Clayton was announced as Trump’s pick to lead the SEC on Wednesday, sparking blowback from House and Senate progressives.

Sen. Sherrod Brown (Ohio), the ranking Democrat on the Senate Banking Committee, said he doubted Clayton’s desire to crack down on corporate misconduct.

{mosads}

“It’s hard to see how an attorney who’s spent his career helping Wall Street beat the rap will keep President-elect Trump’s promise to stop big banks and hedge funds from ‘getting away with murder,’ ” Brown said in a statement.

“I look forward to hearing how Mr. Clayton will protect retirees and savers from being exploited, demand real accountability from the financial institutions the SEC oversees, and work to prevent another financial crisis.”

Rep. Maxine Waters (Calif.), the ranking Democrat on the House Financial Services Committee, echoed Brown’s concerns about Clayton’s career. She also said that his selection “is fervently continuing [Trump’s] campaign of nominating Wall Street insiders to regulate Wall Street.”

“Trump’s preference for Wall Street insiders calls into question his priorities: is he truly aiming to represent the American people or is he rewarding his pals on Wall Street? The nomination of Jay Clayton is clear evidence that Trump favors the latter,” Waters said in a statement.

And Dennis Kelleher, president of financial sector watchdog group Better Markets, called on Clayton to prove his commitment to American citizens.

“While Mr. Clayton may be an excellent lawyer representing Goldman Sachs and Wall Street’s too-big-to-fail banks, America’s families need to know that he will represent them as zealously and as effectively,” Kelleher said in a statement.

Other members of the Senate Banking Committee from both parties held back on reacting to Clayton’s selection.

A spokesman for panel Chairman Mike Crapo (R-Idaho) declined to comment, and Sens. Tim Scott (R-S.C.), Jack Reed (D-R.I.) and Jon Tester (D-Mont.) said they weren’t familiar enough with Clayton to weigh in.

Progressives are often critical of federal nominees with corporate experience. Still, many SEC picks like Clayton have extensive corporate law experience.

Current SEC Chairwoman Mary Jo White led law firm Debevoise & Plimpton’s litigation department, which represented several high-power Wall Street firms. 

Trump on Wednesday called Clayton “a highly talented expert on many aspects of financial and regulatory law, and he will ensure our financial institutions can thrive and create jobs while playing by the rules at the same time” in a statement issued by his transition team.

And the Investment Company Institute, a trade group representing investment funds, called Clayton “an exceptional choice to chair the SEC.”

“His expertise and professional experience position him to hit the ground running—once confirmed—to oversee our capital markets and ensure they remain vibrant, transparent, and secure to foster continued economic growth for America’s workers and businesses,” the group said in a statement.