Democrats doubt Atkins' judgment; GOP embraces him for SEC chair

Mark Schoeff Jr., CQ-Roll Call on Mar 27, 2025

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WASHINGTON — Senate Banking Committee Democrats looked to Paul Atkins’ past to question whether he’s the right person to take over the Securities and Exchange Commission, while Republicans looked forward at a hearing Thursday to a new leader who will change how the agency conducts rulemaking and oversight.

Atkins, a former SEC commissioner and a longtime financial industry consultant, was tapped by President Donald Trump to be the next SEC chair. He appeared before lawmakers along with Jonathan Gould, nominee for Comptroller of the Currency; Luke Pettit, nominee for assistant treasury secretary for financial institutions; and Marc Molinaro, a former House member nominated to lead the Federal Transit Administration.

Atkins’ previous SEC work generated Democratic doubts.

Ranking member Elizabeth Warren, D-Mass., criticized Atkins for what she called his votes to “loosen the reins on big investment banks like Lehman Brothers and Bear Stearns” prior to the financial crisis in 2008. Atkins was on the SEC from 2002-08.

“Mr. Atkins has an almost perfect track record,” Warren said. “He got pretty much everything wrong in the run-up to the biggest financial crash since the Great Depression. That is not a record that deserves promotion.”

Warren asked Atkins about a vote he cast in 2004 to reduce capital buffers for Lehman Brothers Inc. and Bear Stearns and Co. and his subsequent comments that the move had nothing to do with the market collapse.

“So, simple question, Mr. Atkins,” Warren said. “Were you wrong?”

Atkins said many factors contributed to the financial crisis. Warren took another crack, asking him if he was wrong about deregulation.

“No, I don’t believe so,” Atkins said.

That answer didn’t satisfy Warren.

“Your hindsight is not 20-20, it’s 20-0,” Warren said. “You still say that weakening those regulations didn’t have anything to do with that crash. I really hope you will read the bipartisan analysis that says otherwise because it’s very dangerous to have you in charge of the SEC.”

Sen. Raphael Warnock, D-Ga., also asked Atkins about the causes of the financial crisis.

Atkins pointed to the collapse of the subprime mortgage market as a primary reason.

“What troubles me is that some of the key factors to it are still unaddressed, that is Fannie Mae and Freddie Mac’s activities in the marketplace and how that can potentially create problems in the future,” Atkins said.

Warnock asked whether Atkins believed overregulation contributed to the financial crash.

“I don’t know about overregulation,” Atkins said. “I think it was misregulation, frankly — wasted resources and not focused on the actual problems that were there.”

Republicans want Atkins to streamline the SEC’s regulatory activity. He is expected to listen more to Capitol Hill and financial industry skeptics of regulation than his predecessor, Gary Gensler. Opponents criticized Gensler’s agenda as being too expansive and aggressive.

“Regulation ideally should be smart, effective and appropriately tailored within the confines of the regulator’s statutory authority,” Atkins said. “In short, clear rules of the road benefit all market participants.”

Republicans said they’re looking forward to confirming Atkins.

“He will roll back the Biden administration’s disastrous policies, promote capital formation and retail investment opportunities, and provide long-overdue clarity for digital assets, ensuring that American innovation does not fall further behind,” said Senate Banking Chair Tim Scott, R-S.C.

The fact that Atkins is not Gensler is good enough for Sen. Bernie Moreno, R-Ohio.

“Man, you just have to be able to breathe and not be a complete raging lunatic, and you’re going to be the greatest SEC (chair) compared to the last guy,” Moreno said. “Congratulations on coming after Gary Gensler who, objectively, probably, was one of the stupidest people in government.”

Democrats probed Atkins much harder, including on potential conflicts of interest surrounding his post-SEC life. After leaving the SEC, Atkins founded Patomak Global Partners, a firm that specializes in financial strategy, risk management and compliance.

Warren said Patomak is a consultant to banks, asset managers, brokers, exchanges, fintech and crypto firms.

“Your clients pay you north of $1,200 an hour for advice on how to influence regulators like the SEC,” Warren said. “And if you’re confirmed, you will be in a prime spot to deliver for all those clients who’ve been paying you millions of dollars for years.”

Atkins has said he will sell Patomak if confirmed. Warren asked whether he would disclose the purchasers, saying the transaction poses a potential conflict of interest if they have business before the SEC.

“Some people call that a pre-bribe,” Warren said.

Atkins seemed confident he had checked all the ethics boxes.

“I have abided by the Office of Government Ethics process,” Atkins said.