Gensler has experience as a tough markets regulator during the 2008-09 financial crisis as CFTC chair. We’ve seen what happens when markets don’t have real safeguards, and most people are left to fend for themselves - just look at the electricity market in Texas.” “And it means working with other agencies - the banking regulators - to head off growing problems before they become emergencies that hurt the economy. “That means upgrading climate-risk disclosure requirements that are out of date, punishing misconduct and enforcing the protections on the books,” said the committee chair, Sen. … And above all, it means making sure our markets serve the needs of working families.”ĭemocratic senators urged Gensler to take up requiring corporations to fully disclose their climate change risks and political spending, and punishing companies for violations of securities laws. “It means promoting efficiency and competition, so our markets operate with lower costs to companies and higher returns to investors. That will enable people “to invest with confidence and be protected from fraud and manipulation,” he said. If confirmed to the SEC post, Gensler said, he would work to strengthen transparency and accountability in the markets. Robinhood offers commission-free trading, but critics say customers pay another, hidden price because Robinhood provides their data on buying and selling to Wall Street firms. “We don’t consider that gamification,” he said. Tenev said the company merely gives people what they want in a responsible way, and that it offers educational tools for its users to learn about investing. Vlad Tenev, CEO and co-founder of the Silicon Valley company, rejected the accusations of Robinhood’s “gamification” of trading at a recent hearing by a U.S. Lawmakers have asked whether Robinhood is doing enough to communicate the risks to its estimated 13 million users. Critics have accused Robinhood of trying to lure young people with little or no experience trading stocks by including features on its trading platform that resemble gaming apps - like showering users’ screens with virtual confetti when they make a trade. The GameStop episode prompted lawmakers to raise concern about the business model of Robinhood, the online trading platform that hosted a wave of trading in GameStop. “What does it mean when you have balloons and confetti-dropping behavioral prompts to get investors to do more transactions? We’re going to have to study that and think about it,” Gensler told the panel. Among the issues to be examined, he said, is the use of “behavioral” technology in stock-trading apps. “At the core it’s about protecting investors,” Gensler said. The trading frenzy in shares of the struggling video-game retailer lifted their price 1,600% in January, though they later fell back to earth after days of wild price swings. He was asked about the roiling stock-trading drama involving GameStop shares that has spurred clamor for tighter regulation of Wall Street. Gary Gensler, who was a chair of the Commodity Futures Trading Commission during the Obama administration, testified by video for his confirmation hearing by the Senate Banking Committee.
GENSLER CONFIRMED SCRUTINY TOP WALL STREET HOW TO
WASHINGTON (AP) - President Joe Biden’s choice to head the Securities and Exchange Commission told Congress on Tuesday that the agency should address how to protect investors who use online stock-trading platforms with flashy tech gimmicks that entice them to trade more. Please look at the time stamp on the story to see when it was last updated. This is an archived article and the information in the article may be outdated.
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