CNBC's Sorkin: Wall Street spooked by Gaetz nomination

CNBC’s Andrew Ross Sorkin spoke out on President-elect Trump’s nomination of now-former Rep. Matt Gaetz (R-Fla.) for attorney general, saying the decision resulted in a “shift in tone” for Wall Street CEOs.  

“Up until that moment, so many of them had frankly a big grin on their face about where the markets were going,” he said. “When [the nomination] first came across the phone, there were people, including, by the way, myself, who thought it was a parody account.”  

“The shift in tone from, ‘Wow, we’re going to have a great economy’ and all of these things and ‘I don’t have to worry’ to ‘OK, maybe now I have to worry’ was in the blink of an eye,” he added.  

Several current and former lawmakers are expressing concern over Gaetz’s nomination process, with former Speaker Kevin McCarthy (R-Calif.) predicting the former Florida representative would not get confirmed by the Senate. 

Sen. Joni Ernst (R-Iowa) said Gaetz’s nomination would be an “uphill climb,” and Sen. Thom Tillis (R-N.C.), a member of the Judiciary Committee, said Gaetz has “got some work cut out for him” to get enough votes to pass the Senate.

Gaetz was under investigation by the House Ethics Committee for several allegations, including engaging in sexual misconduct and illicit drug use. However, with his resignation from the lower chamber, the panel no longer has jurisdiction but could still vote to release the report. Gaetz was also previously under a Justice Department investigation into allegations that he had sexual intercourse with an underage girl that was closed last year. He has denied any wrongdoing.