Who’s Afraid of Gary Gensler?
Gary Gensler, the new Chair of the Securities and Exchange Commission, is a formidable figure in the financial world. He is known for his sharp intellect, his deep understanding of the markets, and his strong commitment to investor protection.
Gensler’s supporters believe that he will be a tough regulator who will not hesitate to go after Wall Street firms that break the law. They point to his record as head of the Commodity Futures Trading Commission, where he cracked down on market manipulation and other forms of financial misconduct.
Detractors sayGensler is an unrealistic zealot who will stifle innovation and hurt the economy. They argue that his tough regulations will make it harder for businesses to raise capital and create jobs. They worry that Gensler’s focus on investor protection will come at the expense of economic growth.
Only time will tell what Gensler’s tenure as SEC Chair will be like. But one thing is for sure: he is a powerful figure who will have a major impact on the financial world. Whether his legacy will be one of protecting investors or stifling innovation remains to be seen.
Don Wilson, the Trader Who Beat the Regulator Once Before, Isn’t
Wilson had a decades-old career on Wall Street before moving to Chicago to trade futures. After being fired from his job at Gabelli & Co., he struck out on his own and quickly ran afoul of the CFTC.
Years of lawsuits and appeals culminated in a 2005 verdict by the Seventh Circuit Court of Appeals. The judges sided with the CFTC, saying Wilson was subject to oversight under the CEA. Wilson didn’t take the loss lightly: He appealed to the Supreme Court, but the justices refused to take up his case.
By the time the court issued its verdict, Wilson had moved much of his business out of the U.S. He set up offices in Bermuda and Switzerland—undeterred by the fact he could still be held liable for his actions in the U.S.
Gary Gensler, the new Securities and Exchange Commission chairman, has a reputation as an aggressive regulator. But Don Wilson, the trader who beat Gensler in a landmark case 15 years ago, is not afraid of him. In fact, Wilson says he respects Gensler and believes that he is a fair and reasonable person. This is a good sign for investors, who have been worried about Gensler’s tough stance. It suggests that Gensler may be willing to listen to the concerns of the industry and work with them to find solutions that protect investors without stifling innovation.
