Gary Gensler and SEC probed over alleged politically-biased hiring

Republicans on congressional committees are probing Gary Gensler and the Securities Exchange Commission (SEC) for allegedly hiring the SEC’s Director of Trading and Markets based on their left-wing political ideology, alleging violations of the Civil Service Reform Act of 1978.

The letter alleges that Gensler may have been influenced by the “political affiliation” of Dr. Haoxiang Zhu when hiring him. 

They highlight an email Dr. Zhu sent after he called Gensler to discuss his employment. It claims Dr. Zhu affirmed “his ideological suitability” when he sent this email, “I believe I’m in the right place on the political spectrum, and I’m happy [to] provide as many details as needed so you feel comfortable.” 

Dr. Zhu was hired six months later, on November 19, 2021. The letter claims that the SEC “unlawfully” considered a bureaucrat applicant based on their political ideology, violating its own impartiality and the Civil Service Reform Act.

Read more: Fake news: SEC thinks NFTs are securities

It also claims that the SEC has a history of “hiring of individuals from left-leaning organizations to fill senior roles,” in order to back up its argument. 

The letter, dated September 10, was jointly signed by the Judiciary, Financial Services, and Oversight and Accountability committee chairmen Jim Jordan, Patrick McHenry, and James Comer respectively. These three are all Republicans.

The SEC has been asked to provide documents and communications from April 17, 2021, and has been given a September 24, 2024 deadline.

It should cover, “the SEC’s decisions to hire, employ, terminate, or transfer any director or associate director of an SEC Division or Office, or a staff member in the Chair’s office,” and, “the SEC’s consideration or evaluation of the political affiliations or political ideology of an applicant for employment with the SEC, including but not limited to Dr. Zhu.”

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on XInstagramBluesky, and Google News, or subscribe to our YouTube channel. Quotes in bold are our emphasis.