Former Obama Administration official Gary Gensler has been tapped by President-Elect Joe Biden to serve on the recently elected candidate's transition team. Gensler will aid Biden in preparing a transition plan for oversight of Wall Street.
Gary Gensler is no stranger to Wall Street, having served under former President Barack Obama as the Commodity Futures Trading Commission chairman. During his tenure under Obama, Gensler was known for his tough approach to regulating the securities sector. Gensler was most notable for his push to develop a regulatory framework for the derivatives market, which came as a result of the Dodd-Frank Act in the aftermath of the 2008 recession.
Gensler is also a former banker for Goldman Sachs (NYSE: GS), giving him experience in the industry that he would be advising the President-Elect on.
Gensler's appointment may be part of an appeal to progressive Democrats, who have called for a stricter stance on Wall Street. Gensler's work speaks for itself, with the CFTC's powers being expanded considerably under his tenure, and more stringent restrictions being put in place in the wake of the recession.
As a moderate Democrat, Biden raised eyebrows in the progressive sect of the Democratic Party, mainly among officials such as Representative Alexandria Ocasio-Cortez, and Democratic-aligned independent Senator Bernie Sanders.
On the campaign trail for the Democratic nomination, Biden was criticized for being too centrist by progressive candidates. However, in the days since his projected victory, Biden has laid out the plans for his administration, including plans that have elicited calls of support from progressives such as rejoining the Paris Climate Agreement. Tapping Gensler may signal that Biden will take a stronger stance on Wall Street than President Donald Trump, something that will definitely earn the support of progressives in Congress.
Ensuring the support of progressives is key for Biden, who may be facing stiffer resistance in Congress after Democratic prospects for control of the Senate rapidly evaporated.