New York (AFP) – President-elect Donald Trump on Wednesday nominated New York corporate lawyer Jay Clayton to run the Securities and Exchange Commission, saying government needs to get rid of burdensome regulations.
Clayton, a partner at the Sullivan & Cromwell law firm, advised Goldman Sachs and other financial firms during the 2008 financial crisis. At the SEC he will be charged with enforcing the nation’s securities laws and setting policy on matters ranging from corporate disclosure to investor rights.
“Jay Clayton is 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,” Trump said in a news release.
“We need to undo many regulations which have stifled investment in American businesses, and restore oversight of the financial industry in a way that does not harm American workers.”
Clayton will replace outgoing SEC chief Mary Jo White. His appointment comes as many expect Washington to pause or pull back on tough regulations of banks and other companies imposed in the wake of the financial crisis.
He pledged that, if confirmed, he would “carefully monitor our financial sector, as we set policy that encourages American companies to do what they do best: create jobs.”
He represented Goldman Sachs in its dealings in 2008 with the US Treasury’s bailout program, joining other Trump nominees with ties to Goldman Sachs, including Treasury Secretary designee Steven Mnuchin.
Clayton also represented Bear Stearns in connection with its 2008 sale to JPMorgan Chase, and Barclays Capital on its purchase of Lehman Brothers in the same year, according to his biography on his law firm’s website.
Both Bear Stearns and Lehman were crushed by a crash in the sub-prime mortgage market.
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