Gary Gensler
Encyclopedia
Gary Gensler is the chairman of the U.S. Commodity Futures Trading Commission
under President Barack Obama
.
Gensler was Undersecretary of the Treasury (1999-2001) and Assistant Secretary of the Treasury (1997-1999) in the United States
. Barack Obama selected him to lead the Commodity Futures Trading Commission
, which has jurisdiction over $5 trillion in trades. Gensler was sworn in on May 26, 2009.
, Gary Gensler spent 18 years at Goldman Sachs
, making partner when he was 30, becoming head of the company’s fixed income and currency trading operations in Tokyo by the mid-’90s, and eventually the company’s co-head of finance. Questions as to whether there are conflicts of interests relating to Gensler's former employment have been raised, as has been the case in any number of former Goldman employees that go on to hold pivotal positions in the US Treasury, Federal Reserve, or as regulators. Gensler has the reputation in the market though as a politically ambitious man who is more likely to squash than accommodate speculation.
Subsequent to his time at the Treasury he acted as a Senior Adviser to Senator Paul Sarbanes
, one of the authors of legislation that eventually became the Sarbanes-Oxley Act
, designed to bring greater oversight to the accounting industry and reform of corporate governance
.
As the Treasury Department’s undersecretary for domestic finance in the last two years of the Clinton administration, Gensler found himself in the position of overseeing policies in the areas of U.S. financial markets, debt management, financial services, and community development. Gensler advocated the passage of the Commodity Futures Modernization Act of 2000, which exempted credit default swaps and other derivatives from regulation. The Senate was expected to examine his views on derivatives regulation during the Senate confirmation hearings.
In March 2009, Senator Bernie Sanders
(I
-VT
) attempted to block his nomination to head the Commodity Futures Trading Commission. A statement from Sanders’ office said that Gensler “had worked with Sen. Phil Gramm
and Alan Greenspan
to exempt credit default swaps from regulation, which led to the collapse of AIG
and has resulted in the largest taxpayer bailout in US history.” He also accused Gensler of working to deregulate electronic energy trading, which led to the downfall of Enron
, and supporting the Gramm-Leach-Bliley Act
, which allowed American banks to become “too big to fail.”
In early November, 2011, Gensler stepped aside from the CFTC's investigation of the giant derivatives broker MF Global because of his longstanding ties to Jon Corzine, the CEO of MF Global, for whom Gensler had worked while both were at Goldman Sachs.
In late November, 2011, Rep. Randy Neugebauer (R-Texas), head of the House Financial Services oversight subcommittee investigating MF Global's collapse, asked Gensler in a letter to explain his personal involvement in supervising MF Global. Neugebauer noted that Corzine reportedly personally lobbied Gensler and his staff this year in opposition to a possible CFTC rule that would have affected MF Global. Neugebauer asked Gensler why he didn't remove himself earlier from MF Global matters, so Corzine wouldn't have been able to lobby him.
Gensler is the co-author of a book (with Greg Baer), The Great Mutual Fund Trap. The thrust of the book is that active trading and investing is an inefficient strategy for individual investors, and that individuals should stick with index and exchange traded funds
. In November of 2011, Gensler was included on The New Republic's list of Washington's most powerful, least famous people.
Gensler was also a senior adviser to the Hillary Clinton campaign and, after the Democratic Primary, the Obama campaign.
. Gensler has three daughters, Anna 21, Lee 20, and Isabel 14, and currently lives in Baltimore, MD. His wife, Francesca Danieli, died of breast cancer in June, 2006.
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
under President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
.
Gensler was Undersecretary of the Treasury (1999-2001) and Assistant Secretary of the Treasury (1997-1999) in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. Barack Obama selected him to lead the Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
, which has jurisdiction over $5 trillion in trades. Gensler was sworn in on May 26, 2009.
Life and career
After receiving a BS and an MBA from the Wharton School of the University of PennsylvaniaUniversity of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
, Gary Gensler spent 18 years at Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, making partner when he was 30, becoming head of the company’s fixed income and currency trading operations in Tokyo by the mid-’90s, and eventually the company’s co-head of finance. Questions as to whether there are conflicts of interests relating to Gensler's former employment have been raised, as has been the case in any number of former Goldman employees that go on to hold pivotal positions in the US Treasury, Federal Reserve, or as regulators. Gensler has the reputation in the market though as a politically ambitious man who is more likely to squash than accommodate speculation.
Subsequent to his time at the Treasury he acted as a Senior Adviser to Senator Paul Sarbanes
Paul Sarbanes
Paul Spyros Sarbanes , a Democrat, is a former United States Senator who represented the state of Maryland. Sarbanes was the longest-serving senator in Maryland history, having served from 1977 until 2007. He did not seek re-election in 2006, when he was succeeded by fellow Democrat Ben Cardin...
, one of the authors of legislation that eventually became the Sarbanes-Oxley Act
Sarbanes-Oxley Act
The Sarbanes–Oxley Act of 2002 , also known as the 'Public Company Accounting Reform and Investor Protection Act' and 'Corporate and Auditing Accountability and Responsibility Act' and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which...
, designed to bring greater oversight to the accounting industry and reform of corporate governance
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
.
As the Treasury Department’s undersecretary for domestic finance in the last two years of the Clinton administration, Gensler found himself in the position of overseeing policies in the areas of U.S. financial markets, debt management, financial services, and community development. Gensler advocated the passage of the Commodity Futures Modernization Act of 2000, which exempted credit default swaps and other derivatives from regulation. The Senate was expected to examine his views on derivatives regulation during the Senate confirmation hearings.
In March 2009, Senator Bernie Sanders
Bernie Sanders
Bernard "Bernie" Sanders is the junior United States Senator from Vermont. He previously represented Vermont's at-large district in the United States House of Representatives...
(I
Independent (politician)
In politics, an independent or non-party politician is an individual not affiliated to any political party. Independents may hold a centrist viewpoint between those of major political parties, a viewpoint more extreme than any major party, or they may have a viewpoint based on issues that they do...
-VT
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
) attempted to block his nomination to head the Commodity Futures Trading Commission. A statement from Sanders’ office said that Gensler “had worked with Sen. Phil Gramm
Phil Gramm
William Philip "Phil" Gramm is an American economist and politician, who has served as a Democratic Congressman , a Republican Congressman and a Republican Senator from Texas...
and Alan Greenspan
Alan Greenspan
Alan Greenspan is an American economist who served as Chairman of the Federal Reserve of the United States from 1987 to 2006. He currently works as a private advisor and provides consulting for firms through his company, Greenspan Associates LLC...
to exempt credit default swaps from regulation, which led to the collapse of AIG
American International Group
American International Group, Inc. or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in...
and has resulted in the largest taxpayer bailout in US history.” He also accused Gensler of working to deregulate electronic energy trading, which led to the downfall of Enron
Enron
Enron Corporation was an American energy, commodities, and services company based in Houston, Texas. Before its bankruptcy on December 2, 2001, Enron employed approximately 22,000 staff and was one of the world's leading electricity, natural gas, communications, and pulp and paper companies, with...
, and supporting the Gramm-Leach-Bliley Act
Gramm-Leach-Bliley Act
The Gramm–Leach–Bliley Act , also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress...
, which allowed American banks to become “too big to fail.”
In early November, 2011, Gensler stepped aside from the CFTC's investigation of the giant derivatives broker MF Global because of his longstanding ties to Jon Corzine, the CEO of MF Global, for whom Gensler had worked while both were at Goldman Sachs.
In late November, 2011, Rep. Randy Neugebauer (R-Texas), head of the House Financial Services oversight subcommittee investigating MF Global's collapse, asked Gensler in a letter to explain his personal involvement in supervising MF Global. Neugebauer noted that Corzine reportedly personally lobbied Gensler and his staff this year in opposition to a possible CFTC rule that would have affected MF Global. Neugebauer asked Gensler why he didn't remove himself earlier from MF Global matters, so Corzine wouldn't have been able to lobby him.
Gensler is the co-author of a book (with Greg Baer), The Great Mutual Fund Trap. The thrust of the book is that active trading and investing is an inefficient strategy for individual investors, and that individuals should stick with index and exchange traded funds
Exchange-traded fund
An exchange-traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE...
. In November of 2011, Gensler was included on The New Republic's list of Washington's most powerful, least famous people.
Gensler was also a senior adviser to the Hillary Clinton campaign and, after the Democratic Primary, the Obama campaign.
Family
Gensler has a sister Barbra (Gensler) Skarzynski, brothers Kenny Gensler and David Gensler and twin brother Robert Gensler who runs an actively-managed fund for T. Rowe PriceT. Rowe Price
T. Rowe Price is a publicly owned Investment firm, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. The company offers mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial...
. Gensler has three daughters, Anna 21, Lee 20, and Isabel 14, and currently lives in Baltimore, MD. His wife, Francesca Danieli, died of breast cancer in June, 2006.