U.S. lawmakers recently launched a joint investigation into the U.S. Securities and Exchange Commission (SEC), suspecting that the SEC's selection of senior employees based on political affiliations may violate federal law and endanger the agency's impartiality.
Admission based on political correctness?
According to a Sept. 11 letter sent to SEC Chairman Gary Gensler, the investigation was co-sponsored by three Republican members, including:
Judiciary Committee Chairman Jim Jordan
Oversight Accountability Committee Chairman James Comer
Financial Services Committee Chairman Patrick McHenry
The investigation will look into whether the SEC took political affiliations into account when hiring top employees.
Employee guarantee: same political stance
The letter gives an example: Before Dr. Haoxiang Zhu was appointed director of the Trading and Markets Department in November 2021, Zhu had assured the SEC Chairman via email that his political positions were consistent with Gensler:
After this discussion, I believe I am in the right position politically and I can provide as much detail as I need to put your mind at ease.
And six months later, on November 19, 2021, the SEC hired Zhu.
In addition, lawmakers also mentioned other organizations that are suspected of deliberately hiring left-wing figures, including the American Federation of Labor and Industrial Union (AFL-CIO), the Consumer Federation of America (CFA), and the Washington Center for Equitable Growth. Some personnel changes are seen as deliberate attempts to assign top jobs to candidates of a particular political ideology.
Political issues have impacted the regulatory agenda
The letter emphasized that the relevant violations were not independent incidents, but a matter of widespread political bias in the hiring of senior SEC personnel, and questioned whether the SEC, under Gensler's leadership, would affect its regulatory agenda because of its political stance.
Judiciary Committee Chairman Jim Jordan emphasized:
This investigation is at stake in ensuring that the SEC is an impartial regulator free from political influence. If political bias affects hiring decisions, it would also undermine public trust in the SEC's impartial enforcement of securities laws.
The SEC has been required to submit all documents and records of communications related to the hiring, firing or transfer of senior staff since April 2021, which will be reviewed in detail. If the SEC fails to comply, Congress may take further action, including issuing summons.
The SEC has not yet responded to the letter or the allegations related to political hires. However, the SEC is expected to face increasing pressure as congressional investigations proceed.
This article Political Correctness Becomes Admissions Standard, SEC Recruitment Fairness Sparks Controversy first appeared on Chain News ABMedia.
