Gary Gensler facts for kids
Quick facts for kids
Gary Gensler
|
|
|---|---|
Official portrait, 2022
|
|
| 33rd Chair of the Securities and Exchange Commission | |
| In office April 17, 2021 – January 20, 2025 |
|
| President | Joe Biden |
| Preceded by | Allison Lee (Acting) |
| Succeeded by | Mark Uyeda (Acting) |
| Commissioner of the U.S. Securities and Exchange Commission | |
| In office April 17, 2021 – January 20, 2025 |
|
| President | Joe Biden |
| Preceded by | Jay Clayton |
| Succeeded by | Vacant |
| 11th Chair of the Commodity Futures Trading Commission | |
| In office May 26, 2009 – January 3, 2014 |
|
| President | Barack Obama |
| Preceded by | Reuben Jeffery III |
| Succeeded by | Timothy Massad |
| Under Secretary of the Treasury for Domestic Finance | |
| In office April 1999 – January 20, 2001 |
|
| President | Bill Clinton |
| Preceded by | John Hawke |
| Succeeded by | Peter Fisher |
| Assistant Secretary of the Treasury for Financial Markets | |
| In office September 1997 – April 1999 |
|
| President | Bill Clinton |
| Preceded by | Darcy Bradbury |
| Succeeded by | Lee Sachs |
| Personal details | |
| Born | October 18, 1957 Baltimore, Maryland, U.S. |
| Political party | Democratic |
| Spouse |
Francesca Danieli
(m. 1986; died 2006) |
| Children | 3 |
| Education | University of Pennsylvania (BS, MBA) |
Gary S. Gensler (born October 18, 1957) is an American government official. He used to be an investment banker, helping companies with their money. From 2021 to 2025, he was the leader of the U.S. Securities and Exchange Commission (SEC). The SEC is a government agency that protects investors and makes sure financial markets are fair.
Before leading the SEC, Gensler worked for a big investment bank called Goldman Sachs. He also taught about global economics at MIT Sloan School of Management. He helped President Joe Biden's team get ready to take over the government. Gensler also led another important agency, the Commodity Futures Trading Commission (CFTC), under President Barack Obama. The CFTC oversees markets where people trade things like oil and corn.
Contents
Early Life and Education
Gary Gensler was born in Baltimore, Maryland. He was one of five children in his family. His dad sold cigarettes and pinball machines. Sometimes, his dad would take him to bars to count the money from the vending machines. This was Gary's first look at how money works in the real world.
He finished Pikesville High School in 1975. Later, he got a special award from his old high school. Gensler went to the University of Pennsylvania. He earned a degree in economics in three years, with very high honors (summa cum laude). The next year, he got a master's degree in business. When he was in college, he was a coxswain for the rowing team. A coxswain is the person who steers the boat and tells the rowers what to do.
Business Career
In 1979, Gensler started working at Goldman Sachs, a major investment bank. He stayed there for 18 years. When he was 30, he became a "partner," which is a very important position at the company. He was one of the youngest people to achieve this at the time.
In the 1980s, he helped companies combine or buy other companies (called mergers and acquisitions). He also worked in Tokyo, dealing with bonds and different currencies. While at Goldman Sachs, Gensler helped the National Football League (NFL) get a huge deal for TV rights, worth $3.6 billion. His last job at Goldman Sachs was co-head of finance. He left the company when President Bill Clinton chose him for a government job.
Public Service
Working at the Treasury Department
Gensler worked for the United States Department of the Treasury from 1997 to 2001. He helped the Secretary of the Treasury with government money policies. This included managing the government's debt and selling U.S. government bonds. He also helped create laws about financial institutions and markets.
While at the Treasury, Gensler received the Alexander Hamilton Award. This is the highest honor given by the department for excellent service.
Helping Write Sarbanes-Oxley
In 2001, Gensler worked with Senator Paul Sarbanes. He helped write the Sarbanes–Oxley Act. This law made accounting rules stricter for companies. It was created after big company scandals like Enron and WorldCom, where companies lied about their money.
Leading the CFTC
President-elect Barack Obama chose Gensler to lead the CFTC in 2008. The CFTC is a government agency that watches over markets for things like oil, wheat, and other raw materials. He started his job in May 2009. Gensler promised to make these markets more open and safer for investors.
He was known as a "leading reformer" after the 2008 financial crisis. He worked to bring rules to a huge part of the financial market called "derivatives." These are complex financial agreements. Before Gensler, these markets were not very regulated.
After a law called the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed, Gensler led the CFTC in writing 68 new rules. These rules helped control the huge derivatives market. He worked hard to make sure the agency finished writing these rules by the time he left in 2014.
Investigating Libor
Gensler also made the CFTC's enforcement division stronger. They investigated a big case about manipulating something called Libor. Libor is an average interest rate that banks use to lend money to each other. It affects many loans, like student loans and car payments.
Gensler and his team found that some banks were lying about their interest rates to make Libor look different. This was a serious problem because so many financial products depend on Libor. The CFTC charged five banks, and they had to pay over $1.7 billion in fines.
Protecting Consumers in Maryland
In 2017, Gensler became the chairman of the Maryland Financial Consumer Protection Commission. This group looked at how changes in federal financial laws might affect Maryland. They suggested new state laws to better protect consumers.
For example, they recommended clearer rules for student loan companies. They also worked to protect people buying manufactured homes. Thanks to their work, Maryland passed laws to help student borrowers. These laws created a student loan ombudsman (a person who helps with complaints) and protected students from unfair practices.
Leading the SEC
In 2020, Gary Gensler was chosen to help President Joe Biden's team prepare for the new administration. He focused on financial agencies like the Federal Reserve and the SEC. In April 2021, the Senate confirmed him as the 33rd Chair of the SEC. He will serve until January 2025.
Cryptocurrency Regulation
Gensler has talked a lot about cryptocurrency and other digital assets. He believes the SEC needs more staff to regulate this new market. He has compared the crypto market to a "Wild West" because it's not fully regulated.
He thinks most crypto projects that act like investments should be overseen by the SEC. However, some others might be better suited for the CFTC. Gensler has said the SEC does not plan to ban cryptocurrencies. In 2021, the SEC approved the first bitcoin futures exchange-traded fund (ETF). This means people can invest in bitcoin's future price. However, Gensler is against approving "pure play" bitcoin ETFs because he worries about fraud and market manipulation.
In January 2024, a fake post appeared on the SEC's social media account saying that spot bitcoin ETFs were approved. Gensler quickly said the account was "compromised" and the tweet was "unauthorized." This fake news caused the price of bitcoin to jump and then fall quickly.
Gensler has also said that the SEC will start to register and regulate cryptocurrency exchanges. He believes that some crypto exchanges might be acting against their customers' best interests. He has warned that many cryptocurrencies might fail, which could affect trust in traditional financial markets.
Financial Market Rules
Gensler has also focused on making financial markets fairer. He looked into events like the GameStop short squeeze, where many small investors bought a stock and caused its price to skyrocket. He also examined how some trading apps make money from sending customer orders to specific trading firms (called "payment for order flow").
He has emphasized the need for new rules to prevent insider trading. This is when people use secret information to make money in the stock market. The SEC also approved new rules for companies listed on the Nasdaq stock exchange. These rules require companies to have at least one female board member and one board member from a racial minority or LGBTQ group.
The SEC is also looking at how online brokers use "gamification" to encourage people to trade more. This means using game-like features in trading apps. Gensler wants to make sure these practices are fair and don't harm investors.
Greenwashing and ESG
Gensler and the SEC are also working on "ESG" issues. ESG stands for Environmental, Social, and Governance. It means looking at how companies affect the environment, their communities, and how they are run.
The SEC wants companies to be more open about their climate risks. They also want companies to disclose how much they contribute to greenhouse gas emissions. This helps investors understand a company's impact on the planet. Gensler has proposed rules to prevent "greenwashing." This is when companies make false or misleading claims about being environmentally friendly. The SEC is investigating some investment funds for potential greenwashing.
Author
Outside of his government and business jobs, Gary Gensler co-wrote a book called The Great Mutual Fund Trap. The book explains that most actively managed mutual funds don't perform as well as the overall market. It suggests that investors should choose low-fee index funds instead.
Political Involvement
Gensler has been involved in politics for a long time. He was the treasurer for the Maryland Democratic Party. He also held important roles in political campaigns for various politicians in Maryland. In 2008, he advised Hillary Clinton's presidential campaign and later the Obama campaign. In 2015, he became the chief financial officer for Hillary Clinton's presidential campaign.
Academic Life
Gary Gensler is a professor at the MIT Sloan School of Management. He studies how finance and technology connect. He teaches and researches blockchain technology, digital currencies, and financial technology. He also advises a group that looks at financial technology for the New York Federal Reserve. In 2019, he won an award for being an outstanding teacher at MIT Sloan.
Personal Life
Gary Gensler lives in Baltimore with his three daughters: Anna, Lee, and Isabel. He was married to Francesca Danieli, a filmmaker, from 1986 until she passed away from breast cancer in 2006. Gensler enjoys running and has completed nine marathons and one very long 50-mile ultramarathon. He also likes mountain climbing and has climbed Mt. Rainier and Mt. Kilimanjaro.
Images for kids
-
Gensler in 2009
See also
In Spanish: Gary Gensler para niños
