Mark Cuban Calls SEC’s Investor Protection Focus ‘Bullshit’
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has repeatedly said the commission’s main focus is investor protection. Reiterating this goal, he tweeted Tuesday: “The spirit of the law is about protecting investors. Our rigorous enforcement regime is about following the facts and the law, wherever they may lead, on behalf of investors and working families.”
Shark Tank star and the owner of the NBA team Dallas Mavericks, Mark Cuban, called Gensler out. “This is such bullshit. You didn’t start the BS, pls don’t continue it,” he tweeted. “If you were working on behalf of investors you make it easy for questions by investors and businesspeople to be asked and answered. You make it near impossible. Those [who] can’t afford lawyers can only guess.”
In the same Twitter thread, Gensler also wrote: “If someone asks a lawyer, accountant, or adviser if something is over the line, maybe it’s time to step back from the line. Going right up to the edge of a rule or searching for some ambiguity in the text or a footnote may not be consistent w/ the law & its purpose.”
The SEC chairman added: “This includes deceptive conduct by private funds, offering or accounting frauds, insider trading, market manipulation, failures to act in retail customers’ best interests, reporting violations, best execution and fiduciary violations, or any other form of misconduct.”
How about making the lines bright and clear so people know what the rules are? The problem isn’t that people are looking for grey areas, it’s that there rarely are defined rules. Regulation through litigation traps all the people who can’t afford a lawyer, accountant or advisor.
That Shark Tank star further tweeted, “When you talk about stepping over the line. Take a look at the SEC first.”
The billionaire investor additionally noted: “Ask any retail investor to define insider trading, your lawyers rarely agree, how can they know? Why won’t the SEC honor the right to a jury trial? ‘The risk doesn’t leave the system’ is your best line Gary. The risk in dealing with the SEC, is always because of your system.” Cuban continued:
Ask yourself why are there thousands of lawyers at the SEC? Lawyers want to litigate. In EVERY business, if you need a lawyer to fix a problem, you have a big problem. Why doesn’t the SEC have thousands of people working to make sure there isn’t a need for thousands of lawyers?