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WASHINGTON, Nov 6 (Reuters) – Democratic presidential candidate Joe Biden, who appeared to be on the verge of an election victory, is expected to consult with former derivatives markets regulator Gary Gensler on a transition plan for financial industry oversight The Wall Street Journal reported Friday, citing people familiar with the matter.
Gensler, who served as chairman of the Commodity Futures Trading Commission (CFTC) from 2009 to 2014, would lead a team of policy experts focused on banking and market regulators like the CFTC, the Federal Reserve and the Securities and Exchange Commission. as part of a standard regulatory review process conducted by a new government, the WSJ reported.
Gensler and a spokesman for Biden’s move did not immediately respond to a request for comment Friday night.
The decision to appoint Gensler should please many Democrats, who applauded his tough stance on Wall Street under former President Barack Obama.
As CFTC chairman, he led the creation of key swap rules mandated by Congress in the wake of the 2007-2009 financial crisis, and earned a reputation as a hard-line operator unafraid to shake feathers.
His efforts advanced the CFTC in implementing the 2010 Dodd-Frank Reform Act. Other regulators are still implementing the law’s provisions a decade later.
A former Goldman Sachs banker and currently a professor at MIT’s Sloan School of Management, Gensler also oversaw the prosecution of major investment banks for manipulating Libor, the benchmark for global trillion-dollar lending.
Biden, who according to several TV networks leads incumbent Republican President Donald Trump in key battleground states, has been accused of being too comfortable with Wall Street as a senator and later as Obama’s vice president, and has said relatively little about financial reform more broadly.
His appointments are expected to prioritize actions that Democrats broadly endorse — strengthening consumer protections and action to address racial injustice, diversity, wealth inequality and climate change.
One area Biden has focused on is rules encouraging lending to low-income communities, which he has promised to expand. He has also pledged to crack down on credit bureaus criticized for harming consumers with inaccurate reports and focusing on rating factors that disadvantage minorities. (Reporting by Michelle Price; Editing by David Gregorio)