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President-elect Donald Trump will nominate Jay Clayton, a Wall Street lawyer, to head the Securities and Exchange Commission, according to transition sources.
Clayton, a partner at Sullivan and Cromwell, has represented numerous Wall Street giants and has even defended financial institutions against regulators.
According to Clayton’s biography on Sullivan and Cromwell’s website, he represented multiple banks during the financial crisis including Barclays during its purchase of Lehman Brothers, Bear Stearns in its sale of itself to JPMorgan, and Goldman Sachs during its investment from Warren Buffett and the US TARP program.
Clayton has also represented large financial institutions – as his website puts it – against government agencies such as the Department of Justice, the Federal Housing Finance Agency, and even the SEC. The various cases include:
- “A large financial institution in connection with the settlement of mortgage related claims with the DOJ, HUD and FHFA.” “A hedge fund in connection with a regulatory review of various credit market transactions.” “A large financial institution in connection with a regulatory review of transactions in government securities.”
Clayton also has experience in capital markets, advising on the initial public offerings of Alibaba, Ally Financial, Oaktree Capital Group, and Och-Ziff.
“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 statement from the transition.
“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.”
While Clayton, who also was quoted, did not mention rolling back regulation specifically, he emphasized encouraging investment from businesses.
“If confirmed, we are going to work together with key stakeholders in the financial system to make sure we provide investors and our companies with the confidence to invest together in America,” Clayton said in the statement. “We will carefully monitor our financial sector, as we set policy that encourages American companies to do what they do best: create jobs.”