The Securities Exchange Commission is becoming woke – opinion
DARLENE CASELLA , 17 April 2021
Franklin D. Roosevelt was president when the Securities Exchange Commission was created in 1934. The function of the SEC was to regulate the buying and selling of securities, and to reform the stock exchanges. Its Holy Grail was to protect investors.
Prior to the stock market crash in 1929, there was no regulation of financial markets. A flower shop could sell stocks and bonds. The shoe shine boy gave hot stock tips. Unregulated Wall Street was deficient of accurate audited information regarding securities issued or sold. False information, fraudulent rumors and get-rich-quick schemes abounded. Speculation, insider trading, manipulation, short selling and buying on low margin credit was rampant. Prominent stock brokerage firms existed, but trustworthy information was out of the question for the average person. Continue reading “Article: The Securities Exchange Commission is becoming woke – opinion”
This $800 million whistleblower program is losing its top cop
Matt Egan, 16 April 2021
The head of the Securities and Exchange Commission’s highly-successful whistleblower program is stepping down at a delicate moment for the market watchdog.
Jane Norberg is leaving the SEC on Friday, after presiding over a four-and-half-year period during which the whistleblower office handed out a staggering $702 million in awards to 114 individuals who aided the agency’s investigations.
Her departure comes as former Obama-era official Gary Gensler takes over the SEC and as regulators come under fire from progressives — and even some famous investors — for failing to do enough to protect investors. Continue reading “Article: This $800 million whistleblower program is losing its top cop”
David Einhorn calls out Elon Musk and Chamath Palihapitiya, defends GameStop champion Roaring Kitty, and blasts market regulators in a new letter. Here are the 11 best quotes.
Theron Mohamed, 16 April 2021
The elite investor David Einhorn blasted market regulators, accused Elon Musk and Chamath Palihapitiya of juicing assets, and praised the GameStop champion Keith Gill in a letter to Greenlight Capital investors this week.
The Greenlight president also highlighted the “Big Short” investor Michael Burry’s exit from Twitter and pushed for greater scrutiny of Archegos Capital, the family office that blew up in March. Einhorn’s latest letter was obtained by ValueWalk. Continue reading “Article: David Einhorn calls out Elon Musk and Chamath Palihapitiya, defends GameStop champion Roaring Kitty, and blasts market regulators in a new letter. Here are the 11 best quotes.”
Gary Gensler has a full agenda as he gets set to take over the SEC
Bob Pisani, 14 April 2021
(The Senate is expected to confirm Gary Gensler as the new chairman of the Securities and Exchange Commission on Wednesday, and crypto assets — including bitcoin — are likely high on his agenda.
With Democrats in control of all three major branches of government, and the SEC commissioners now with a 3-2 Democratic majority, Gensler is likely to face calls from progressives to act on several fronts, including ESG, the Gamestop fallout, the Archegos fiasco, payment for order flow, fiduciary obligations, and especially regulations around securities in the crypto space, including a bitcoin ETF.
A Senate vote on Gensler’s nomination is scheduled for 11:45 a.m. ET. Continue reading “Article: Gary Gensler has a full agenda as he gets set to take over the SEC”
Archegos Exposes SEC Blind Spots, Dithering on Market Oversight
Robert Schmidt and Benjamin Bainx, 10 April 2021
The U.S. Securities and Exchange Commission was supposed to be able to spot a whale like Bill Hwang by now. As the financial world knows, it didn’t. Will the agency be able to catch the next one?
The collapse of Hwang’s Archegos Capital Management represents one of the most spectacular failures of risk-management and oversight in recent memory. For the SEC, it caps a decade of foot-dragging on protections that were meant to avert, or at least minimize, just such a blowup. Continue reading “Article: Archegos Exposes SEC Blind Spots, Dithering on Market Oversight”
THE POTENTIAL DOMINO EFFECT OF GAMESTOP
Lawyer Monthly, 07 April 2021
The GameStop saga stopped the stock market in its tracks earlier this year, with wealthy hedge funds losing millions of pounds. The move was orchestrated on a subreddit thread, with vast numbers of average investors joining forces to push up the share price.
No one can deny the effect was tumultuous. However, what isn’t so clear is what will happen in the longer term. The legalities of the subreddit crowd are still in question, yet there’s no guarantee that it won’t happen again. Continue reading “Article: THE POTENTIAL DOMINO EFFECT OF GAMESTOP”
XRP Pumped To $1, Ignoring SEC Lawsuit
Dana Sanchez, 07 April 2021
XRP, the currency that runs on the digital payment platform RippleNet, hit $1 on Tuesday morning EDT, becoming the fourth highest-valued cryptocurrency with a $45.5 billion market cap despite being sued by the U.S. agency that works against market manipulation.
After rising as high as $1.12, XRP was trading at $0.96 as of this writing, with a $43.567 billion market cap — still ranked at No. 4 by CoinMarketCap, before slipping down to fifth place after Tether. Continue reading “Article: XRP Pumped To $1, Ignoring SEC Lawsuit”
RIPPLE’S XRP BLASTS PAST SEC LAWSUIT FEARS TO HIT THREE-YEAR HIGH
YASHU GOLA, 06 April 2021
XRP bulls are back!
The Ripple blockchain’s native token, which got embroiled in a legal controversy with the US Securities and Exchange Commission over its alleged securities status — and which led to the delisting of its highly traded financial instruments across many US-based crypto exchanges, reached its highest levels in three years this week.
XRP’s price against the US dollar hit $0.948 on Tuesday, up 66.15 percent into April 2021. The token’s major upside move surfaced partly due to a rally across the cryptocurrency market and else due to anticipations that it would walk through the SEC lawsuit unharmed. Continue reading “Article: RIPPLE’S XRP BLASTS PAST SEC LAWSUIT FEARS TO HIT THREE-YEAR HIGH”
Todd Ehret, 06 April 2021
Bitcoin, other cryptocurrencies, and essentially all digital assets have surged in price recently amid surging interest by the public, investors of all types, and the financial industry. Despite a steadily growing acceptance and anticipation of a crypto-friendly regulatory environment under the new administration in Washington, the future regulatory framework for digital assets is complex and uncertain. Continue reading “Article: INSIGHT: U.S. cryptocurrency regulatory path appears long and complex”
SoftBank pays $2.8B to acquire 40% stake in warehouse automation firm AutoStore
DUNCAN RILEY, 05 April 2021
SoftBank Group Corp. said today it has invested $2.8 billion to acquire a 40% stake in Norwegian warehouse automation company AutoStore AS.
SoftBank, Japan’s largest telecommunications companies and one of the world’s largest venture capital firms, acquired shares in the company from funds affiliated with Thomas H. Lee Partners L.P. and EQT Private Equity, among other shareholders. According to the Wall Street Journal, the deal values AutoStore at $7.7 billion. Continue reading “Article: SoftBank pays $2.8B to acquire 40% stake in warehouse automation firm AutoStore”
American Acquisition Opportunity Inc. Announces Partial Exercise of Over-Allotment Option in Connection With Its Initial Public Offering
ACCESSWIRE, 02 April 2021
American Acquisition Opportunity Inc. (NASDAQ:AMAOU)(the “Company”) announced today that it has closed the issuance of an additional 506,002 units pursuant to the partial exercise of the underwriter’s over-allotment option in connection with the company’s initial public offering. The units are listed on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “AMAOU”. Each unit consists of one share of the Company’s Class A common stock and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Only whole warrants are exercisable and will trade. Once the securities comprising the units begin separate trading, shares of the Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “AMAO” and “AMAOW,” respectively Continue reading “Article: American Acquisition Opportunity Inc. Announces Partial Exercise of Over-Allotment Option in Connection With Its Initial Public Offering”
‘Voltswagen’ April Fools Stunt Could Backfire Spectacularly
TooFab Staff, 02 April 2021
Volkswagen said the name change was a joke — but not everybody is laughing.
Volkswagen broke a few April Fools rules with its name change prank this week; namely it not even being April Fools Day, and continuously insisting it wasn’t a prank when called out.
But it may have broken even more serious rules after the stunt caused share prices to soar… leading some business experts to predict an investigation into possible stock market manipulation.
The controversy began on Monday (note: that’s March 29, a good deal short of April 1) when the company “accidentally” leaked an incomplete press release, revealing its intention to change its name to Voltswagen to mark its move towards electric vehicles. Continue reading “Article: ‘Voltswagen’ April Fools Stunt Could Backfire Spectacularly”
Morgan Stanley backs Bitcoin for 12 mutual funds
EXPLICA .CO, 02 April 2021
US investment bank Morgan Stanley has filed an update to its prospectus related to bitcoin (BTC) with the Securities and Exchange Commission (SEC). The institution applied for 12 of its funds to have exposure with the first cryptocurrency.
According to the bank, the funds would have indirect exposure to bitcoin in two ways: through cash-settled futures and through the Grayscale Bitcoin Trust (GBTC), one of the world’s largest trusts focused on digital assets.
On the type of futures that funds can invest in, Morgan Stanley noted: “The only bitcoin futures that a fund can invest in are cash-settled bitcoin futures that are traded on listed futures exchanges. CFTC ‘.
In the document, the bank explains that the Selected funds will be able to invest up to 25% of their assets in bitcoin. The institution also stressed that this type of operation implies a risk of illiquidity since bitcoin futures are not traded so “intensely” because they are relatively new. Continue reading “Article: Morgan Stanley backs Bitcoin for 12 mutual funds”
SEC Puts Brokers On Notice For Money Laundering Concerns
Al Barbarino, 31 March 2021
The U.S. Securities and Exchange Commission isn’t satisfied with the way broker-dealers are responding to and reporting suspicious activities, and a wave of enforcement actions could follow if these regulated entities don’t fall in line with the agency’s latest warning on the matter, industry attorneys say.
Redoubling its efforts to keep brokers in check when it comes to their anti-money laundering, or AML, obligations, the agency in a Monday risk alert sought to “remind” the regulated entities of their duties to report suspicious activities tied to penny stocks, unregistered securities and other high-risk transactions that have swelled up amid COVID-19. Continue reading “Article: SEC Puts Brokers On Notice For Money Laundering Concerns”
SEC Opens Probe Into Archegos Chaos, Deutsche Bank Confirms ‘Quick Sale’ To Avoid All Losses
TYLER DURDEN, 31 March 2021
As more details from the now infamous debacle surrounding Tiger cub Archegos, whose massive derivative-based exposures spilled out into the open and transformed into the biggest and most painful rolling margin call to hit Wall Street since Lehman, we now know that at least six Prime Brokers scrambled to unwind the biggest hedge fund blowup since LTCM without hammering the overall market.
To “make a living in this business… be first, be smarter, or cheat…”
We previously noted that Morgan Stanley and Goldman Sachs were the “first” to break ranks and rejected the efforts of Credit Suisse’s emissaries who tried to create consensus to unwind the positions without sparking a panic.
As we now also know, Nomura and Credit Suisse which dithered and were unsure what to do, seeing their stock crushed and their counterparty risk hedge premia explode higher.. Continue reading “Article:SEC Opens Probe Into Archegos Chaos, Deutsche Bank Confirms ‘Quick Sale’ To Avoid All Losses”