Legislators are worried that the agency is giving preference to people with political inclinations.
The legislators have requested that Gensler provide key papers about employment procedures.
Market debates have been sparked by the investigation into the hiring procedures of US SEC Chair Gary Gensler. There are worries about the agency’s neutrality in recruiting methods. Since the probe, which was initiated by the House Republicans, suggests that it may be violating federal law by perhaps considering political leanings in its recruitment process.
Jim Jordan, Patrick McHenry, and James Comer—all Republicans in the House—wrote a letter to Gary Gensler on September 10th, casting doubt on his hiring selections. Legislators are worried that the agency is giving preferential treatment to people with political inclinations. Which would be a violation of the 1978 Civil Service Reform Act.
Considering Political Ideologies Allegations
Moreover, the lawmaker’s letter to the US SEC Chair cites an email exchange that suggests Dr. Haoxiang Zhu’s (SEC Director of Trading and Markets) appointment may have been influenced by political ideology. At the same time, the letter implied that Dr. Zhu had guaranteed Gensler of his political affiliation after their conversation over possible employment at the SEC.
The fact that Zhu was employed in November 2021, six months after the email’s date of May 2021, raises concerns. Some have taken Gensler’s email as proof that the agency illegally takes candidates’ political ideologies into account when making employment choices.
Legislators, meantime, claim that the SEC would be in breach of its obligation to maintain objectivity. If these claims are true.
The legislators have requested that Gary Gensler provide key papers about their employment procedures no later than September 24. All correspondence and documents pertaining to the agency’s senior leadership employment choices have also been sought by the House Committees. Put another way, the committee is trying to find proof that political beliefs had a role in the employment decisions.
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