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Robinhood attorney, Republican regulators being considered for Trump financial agency short list
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Robinhood attorney, Republican regulators being considered for Trump financial agency short list
Nov 9, 2024 12:59 PM

(Repeating item sent previously with no changes to text)

By Chris Prentice, Pete Schroeder, Svea Herbst-Bayliss and

Michelle Price

WASHINGTON, Nov 8 (Reuters) - Trump transition team

officials are considering retail brokerage Robinhood's

top lawyer, as well as bank regulators and corporate attorneys,

for a short list of key financial agency heads they expect to

present to the president-elect soon, according to multiple

people with knowledge of the matter.

Among those being considered for chair of the Securities and

Exchange Commission is Dan Gallagher, a Republican SEC

commissioner from 2011 to 2015 who is currently chief legal and

compliance officer at Robinhood, the people said.

Gallagher, who is a popular pick among cryptocurrency

executives who donated millions of dollars to Donald Trump's

Republican campaign, is the front-runner at this point, although

the discussions are fluid, two of the people said.

Also in the mix for SEC chair is Paul Atkins, another former

Republican SEC commissioner and CEO of consultancy Patomak

Global Partners. Atkins served on Trump's transition team in

2016, when he was also a contender for the SEC chair role,

Reuters reported at the time.

Robert Stebbins, a partner at law firm Willkie Farr &

Gallagher who served as SEC general counsel during Trump's first

administration, is also being discussed for the SEC short list.

Trump transition team officials are compiling a short list

of a handful of individuals for each financial agency which they

will present to Trump, said two of the people. The process could

take a few weeks, and it was still too early to say who would

ultimately win the top jobs, the people said.

Gallagher and Atkins did not respond to requests for comment

on Thursday. Stebbins declined to comment.

In a statement, Karoline Leavitt, Trump's national press

secretary, said: "President-Elect Trump will begin making

decisions on who will serve in his second Administration soon.

Those decisions will be announced when they are made."

Trump's campaign courted crypto industry cash with promises

to promote bitcoin and overhaul the SEC, whose Democratic chair,

Gary Gensler, has cracked down hard on the industry, saying it

has flouted SEC rules. Crypto companies have been pushing for an

SEC chair who will quickly end his crackdown and tear up other

unfriendly policies, Reuters previously reported.

Many in the industry saw Republican SEC Commissioner

Hester Peirce, a crypto enthusiast, as a strong candidate for

SEC chair, but she has told several people she does not want the

job, several sources said. A spokesperson for Peirce said she

declined to comment on Thursday.

Gensler's term ends in 2026, but he has indicated he will

step down when the new Republican administration comes in.

BANKING REGULATORS

While Trump has said little on financial policy this time

around, he has again pledged to slash "burdensome" regulations.

Bankers and lobbyists expect his administration will rip up or

dramatically weaken draft "Basel" rules requiring that big banks

raise the amount of capital they must put aside to absorb

losses, restrictions on mergers and acquisition, and other rules

being pursued by the Biden administration agency heads.

Trump can remove Acting Comptroller of the Currency Michael

Hsu on day one, but overhauling the Federal Reserve's top

regulatory spot and the Federal Deposit Insurance Corporation

board could take some months.

Among those being considered for the short list of top bank

regulators are Michelle Bowman, a Fed governor and former

community banker who has criticized capital hikes led by Michael

Barr, Fed vice chair for supervision, and made the case for

easing bank rules and supervision.

Barr has conveyed to allies that he intends to serve out his

vice chair term into 2026, according to a different source

familiar with the matter. It was unclear whether Trump could or

would try to remove Barr from his role sooner.

A Fed spokesperson declined to comment.

Travis Hill, the Republican vice chairman of the FDIC Board

and a former Senate Banking Committee lawyer who has also

opposed the Basel rules, is also being considered for the short

list of top banking regulator roles, the people said.

Jonathan Gould, a partner at law firm Jones Day who served

as the senior deputy comptroller and chief counsel of the Office

of the Comptroller of the Currency from 2018 to 2021, is also in

mix, the people said.

Gould and a spokesperson for Hill declined to comment. The

FDIC did not respond to a request for comment. An Office of the

Comptroller of the Currency spokesperson said Hsu is committed

to an orderly transition.

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