President-elect Joe Biden has
announced his picks for two important financial regulatory positions. The
chairmanship of the Consumer Financial Protection Bureau (CFPB) will be filled
by Rohit Chopra
while Gary Gensler is expected to be named to head the U.S.
Securities and Exchange Commission
(SEC). Both nominations are expected to be
controversial among the communities that fall under supervision of the two
agencies with Chopra perhaps facing a difficult confirmation process.

Chopra helped now-senator Elizabeth
Warren (D-MA) design CFPB during the presidency of Barack Obama and served as
its assistant director and student loan ombudsperson. He has been a member of
the Federal Trade Commission since 2018. Gensler was chair of the Commodity
Futures Trading Commission (CFTC) from 2009 to 2014 and has led Biden’s financial
industry oversight planning team since the election. Industry observers generally
expect the appointments to signal a return to more robust oversight than was the
course during the outgoing administration.

Chopra will replace Kathy Kraninger
at CFPB. His appointment is the indirect result of a Supreme Court decision
last June. The CFPB chairmanship as well as that of the Federal Housing Finance
Agency (FHFA) were designed, under the Dodd-Frank Wall Street Reform and
Consumer Protection Act to be for five-year terms and the occupants removable
only for cause. The Court, in Seila Law V Consumer Financial Protection
, ruled that the single director design of the agency vested too much
power in one person. This opened the door for a president to fire him or her at
will. FHFA was not part of the law suit but is generally assumed to fall under its precedent. So far there is no indication that Biden will replace FHFA
director Mark Cambria.

Gensler will take over from acting
SEC chair Elad L. Roisman who was appointed only three weeks ago. Jay Clayton
had led the agency for most of the Trump term and resigned at the end of 2020.

In announcing the nominations, the President-elect
said, “Our
administration will hit the ground running to deliver immediate, urgent relief
to Americans; confront the overlapping crises of COVID-19, the historic
economic downturn, systemic racism and inequality, and the climate crisis; and
get this government working for the people it serves,” Biden said in a
statement. “These tireless public servants will be a key part of our agenda to
build back better – and I am confident they will help make meaningful change
and move our country forward.

By Jann Swanson , dated 2021-01-19 11:05:44

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Courtesy of Mortgage News Daily

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