A U.S. senator wants the inspector general of Wall Street's chief regulator to inquire about a reported exchange between a top Securities and Exchange Commission official and Citigroup Inc. executives.
In late April, several Citi executives met with officials at the SEC to discuss derivatives regulation, Bloomberg News reported in May. But instead, SEC Commissioner Michael Piwowar lambasted the bank's decision to implement new standards for its business customers that sell guns, an area that falls outside of the SEC's purview, according to the report.
Now, Sen. Chris Van Hollen, D-Md., plans to ask the inspector general to investigate the reported exchange.
"Regulatory bodies should not be using their authority to try to assert the personal opinions of the members," Van Hollen said June 5 during a Senate Committee on Appropriations hearing that featured SEC Chairman Jay Clayton. "They shouldn't be using the power they have over regulated entities on issues outside of their jurisdiction."
Clayton said he was aware of the reported exchange and that he has not asked the Inspector General to investigate. "I don't think that this would be the appropriate form to get into that, but I understand your comments and concerns," he said at the hearing.
An SEC spokesperson did not respond to a request for comment.
After a school shooting in Parkland, Fla., in February, a host of banks, asset managers and pension funds took action against companies selling and manufacturing of firearms. Bank of America Corp. said that it would stop lending to companies that manufacture assault-style guns used outside of the military. BlackRock Inc., Vanguard Group Inc. and State Street Global Advisors Ltd. all announced their plans to engage gunmakers and firearm retailers.
Specifically, Citi said it planned to require new retail sector clients or partners to not sell firearms to anyone who has not passed a background check, to restrict the sale of firearms to anyone younger than 21 years old and to not sell bump stocks or high-capacity magazines.
