Two top Biden regulator picks will face Senate scrutiny today

SEC, Consumer Bureau nominees expected to be confirmed.

President Joe Biden’s plans for a new era of tough Wall Street oversight will take center stage today when two of his top regulator picks face questions during a Senate Banking Committee hearing.

Gary Gensler, who the White House has tapped to head the Securities and Exchange Commission, and Rohit Chopra, the administration’s choice to lead the Consumer Financial Protection Bureau, are likely to win confirmation, lawmakers and financial executives say. Yet their strong support from progressive Democrats means they’re certain to get pointed questions from Republican senators about their plans to crack down on businesses.

The wild rally in Gamestop Corp., the explosion of blankcheck companies and apps — such as Robinhood Markets’ platform — that have prompted millions of novice investors to start trading are sure to be discussed. The biggest banks, hedge funds and private equity firms are also likely to be spotlighted.

Gensler, 63, is well-known on Wall Street after leading the Commodity Futures Trading Commission during the Obama administration. Chopra, 39, a Federal Trade Commission member who helped Massachusetts Sen. Elizabeth Warren set up the CFPB, would run an agency that Democrats want reinvigorated to protect consumers from abuses involving credit cards, mortgages and high-interest loans.

“There remains a sharp divide between Republicans and Democrats on the role of the CFPB in financial regulation,” said Andrew Olmem, National Economic Council deputy director in the Trump administration who is now a partner at the Mayer Brown law firm. “This is a very important nomination because a new director can significantly shift the direction of the CFPB.”

Gary Gensler (left) has been chose to head the SEC, and Rohit Chopra has been picked to lead the Consumer Financial Protection Bureau.