6.25.20
On Thursday, June 25, Securities and Exchange Commission Chairman Jay Clayton appeared before the House Committee on Financial Services at a hearing titled “Capital Markets and Emergency Lending in the COVID-19 Era.” Members from both parties raised concerns about the Federal Reserve’s emergency facilities arbitrarily choosing winners and losers from the NRSROs, the scoring and metrics related to ESG disclosures, and concerns for the CMBS market. Specifically, Rep. Warren Davidson (R-OH) noted the Fed has not provided the needed liquidity to assist firms in the CMBS market and asked if the SEC was looking at the market structure side of this issue, which Clayton said they were doing. Several Democratic members also questioned Chairman Clayton on the Trump Administration’s recent announcement on its intent to nominate him as the next U.S. Attorney for the Southern District of New York. Chairman Clayton clarified that he requested this position as a way to return to New York and continue his public service.