U.S. Senator Elizabeth Warren recently confronted Paul Atkins, the Securities and Exchange Commission (SEC) Chair-Designate, during his nomination hearing. Warren scrutinized Atkins for his actions and decisions as an SEC Commissioner leading up to the 2008 financial crisis, particularly his involvement in deregulation, which she argued contributed significantly to the crash.
Warren questioned Atkins on decisions made during his tenure. She highlighted specific instances, such as when Atkins voted in 2004 to allow Lehman Brothers and Bear Stearns to reduce their capital buffers and his subsequent comments following financial turmoil in 2007 and the collapse of Bear Stearns in 2008. Despite Warren's claims, Atkins maintained he was not wrong. “Well Senator Warren, you know there are as we saw on the Congressional Oversight panel for TARP, there were many causes for the problems there with the subprime mortgage crisis,” Atkins replied when asked if he was wrong about deregulation. Furthermore, when Warren referred to reports from the SEC Inspector General and the financial crisis inquiry commission asserting that deregulation contributed to the crisis, Atkins disagreed, stating, “No I don’t believe so.”
Warren further expressed concern about Atkins’s potential financial conflicts of interest, citing his founding of Patomak Global Partners, a consulting firm. She questioned how his connections with clients, many of whom are subject to SEC regulations, might influence his future role. Warren addressed Atkins, stating, “Your clients pay you north of $1,200 an hour, for advice on how to influence regulators like the SEC.”
Additionally, Warren sought clarity on whether Atkins would disclose the buyer of his consulting company, Patomak, if confirmed, to ensure that future conflicts of interest could be avoided. Atkins responded, “Well Senator Warren, I have abided by the Office of Government Ethics process.” Warren's follow-up, “So is that a no? You’re not going to tell us who you’re going to sell it to and how much money you get?” reiterated her concerns about transparency and ethics. The exchange has drawn attention to potential challenges Atkins may face if confirmed as the SEC Chair, rooted in both past decisions and future conflict of interest issues.