Business & Economy

On The Money: Senate confirms Gensler to lead SEC | Senate GOP to face off over earmarks next week | Top Republican on House tax panel to retire

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THE BIG DEAL—Senate confirms Gensler to lead SEC: The Senate on Wednesday confirmed President Biden’s pick to lead the Securities and Exchange Commission (SEC), cementing a Democratic majority at the financial watchdog agency.

Getting to know Gensler: Gensler, 63, is a professor at the MIT Sloan School of Management and led the Commodity Futures Trading Commission (CFTC) for most of the Obama administration, supervising options and derivatives markets. He also served as Treasury undersecretary for domestic finance under former President Clinton after spending nearly two decades at Goldman Sachs.

The work ahead: Gensler will take the helm of the SEC at a critical time for the investment industry and U.S. economy. 

“We expect the themes of Mr. Gensler’s chairmanship will likely be aggressive enforcement and increased transparency through additional disclosures,” wrote Brian Gardner, chief Washington policy strategist at investment firm Stifel.

I break it all down here.  

 

LEADING THE DAY

Senate GOP to face off over earmarks next week: A simmering debate among Senate Republicans about whether to embrace the return of earmarks will come to a head next week when GOP senators review the caucus rules on Wednesday. The review takes place every two years, but it’s the first opportunity the caucus will have to revisit a 2019 permanent ban on earmarks.

The debate over whether to formally greenlight earmarks is sparking deep divisions among Senate Republicans, who have hammered President Biden over his multitrillion-dollar spending proposals. 

The Hill’s Jordain Carney explains here.

 

GOP Rep. Kevin Brady won’t seek reelection: Rep. Kevin Brady (Texas), the top Republican on the House Ways and Means Committee, announced Wednesday that he will not seek reelection next year after serving since 1997.

The background: Brady is term-limited in his role as the top Republican on the powerful panel with jurisdiction over the tax code, meaning he wouldn’t be able to keep the position in the next session of Congress. He previously served as the committee’s chairman from 2015 to 2019, and when Republicans enacted their 2017 tax overhaul under former President Trump.

He acknowledged that the House GOP’s internal rule limiting members to six consecutive years of committee leadership at a time played a role in his decision to retire.

“Did that factor in? Honestly, some,” Brady said. “But as I see it, our committee leader term limits ensure lawmakers who work hard and effectively have the opportunity to lead, to bring fresh ideas to our committee work. In my view, it’s a good thing.”

The Hill’s Cristina Marcos has more here.

Next man up: Brady’s retirement will set off a race among House Republicans for the coveted top slot on the House Ways and Means Committee. Rep. Devin Nunes (Calif.) is the next most senior Republican on the panel, followed by Reps. Vern Buchanan (Fla.) and Adrian Smith (Neb.).

Nunes is already the top Republican on the House Intelligence Committee, so he’d have to give that gavel up if he wanted to lead Ways and Means. He did consider running against Brady for the top GOP spot in 2015—when then-chairman Paul Ryan, who beat out Brady for the gavel in the previous Congress—became Speaker.

 

ON TAP TOMORROW:

 

GOOD TO KNOW

 

ODDS AND ENDS