Welcome back to the channel everyone today, i want to talk about whether gary gensler could be the one to cause the amc squeeze. I personally think that gary could be pulling the old double bluff or double betrayal, just like snape did in the harry potter films. So stay tuned and let's make some money, and now i want to dive straight in with the key information, so gary gensler joined jim cramer yesterday on mad money. Again, he said they're working on a new game over shorty's rule which should change the short interest reporting and make public short interest, information, correct and visible to everyone.

This sounds positive if accepted. So, if you didn't already know the sec are gon na vote next week. On whether they're gon na boost hedge fund disclosures around short selling and short selling requirements, the sec will vote next week to propose boosting hedge fund disclosures in a bid to enhance industry oversight and investor protections. The agency's chair said on wednesday gary gensler told reporters that the sec will vote to propose rule changes to the form private fund, which many hedge funds and other private funds file quarterly, which details their purchases and sales of securities.

Critics say the forms do not provide sufficient information and that hedge funds are able to operate with too little transparency now. Obviously, this rule change will have a big impact in the market, because hedge fund managers fear the painful losses they suffered in the meme stock trading frenzy of january 2021 will be repeated if u.s regulators press ahead with the reforms to securities lending one of the most Opaque practices in financial markets, so hedge fund managers are actually scared of this new rule change, which will increase transparency around short selling because they fear they will be squeezed again. The drastic changes in reporting and disclosure standards planned by the sec have triggered opposition from hedge funds and other key players in securities lending, including blackrock, the world's largest asset manager. Obviously, we've speculated for some time that blackrock have been lending their shares to hedge funds like citadel and citadel have been using those shares to shore more amc.

Obviously, if the sec changes, these disclosures around short selling, but also share lending it'll effectively expose blackrock, as well as exposing all the short hedge funds. Jennifer han head of regulatory affairs at the managed funds association. The washington-based trade body that represents hedge fund managers said the sec's proposals were misguided and could create more meme stock style volatility leading to situations similar to the gamestop market event. Obviously, if these short selling disclosures are increased and naked shorts end up being exposed, it will lead to another situation similar to what happened back in january and june of 2021 jennifer han said.

They were strongly concerned that other market participants, so retail investors, but also other funds, would be able to reconstruct or reverse engineer a hedge fund's trading strategy. If the sec insisted on highly detailed reporting of securities lending transactions effectively, us retail investors and other hedge funds will be able to spot when hedge funds have created naked shorts and in which company and therefore we can reverse engineer it and bet against them. The sec's proposal would allow other traders to front run, or mostly short, squeeze hedge funds that wanted to bet against the company's stock. I don't think we'd ever be in a position to front run them as they wouldn't be, making real-time disclosures or disclosures ahead of taking a short position.

It'd obviously still be delayed, but what we can do with that information is end up squeezing the shorts, which is brilliant news for amc investors. Now, obviously, i'll leave the link to this article down in the description below and feel free to read more about the several hedge fund managers that are scared about these new regulatory changes. Obviously, if there are hedge fund managers, that are very, very scared. Obviously, this change is gon na, be a big deal guys if you're getting a little bit worried about holding your amc infidelity, especially after all the recent glitches and the fact they now actually support short sellers mumu are currently giving away a free share of amc.

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So you guys be sure to sign up to moomoo using the link in the description below and make your first deposit, and this is why i think we could potentially be double wrong about gary gensler. He says lawyers left on mass when gary gensler took the job, because gary wouldn't let the lawyers play nice with wall street and he wanted higher fines and bigger settlements for victims, even going so far as to scuttle deals already in progress, and this is something we Have actually seen over the last year, the sec has definitely been paying out bigger awards to whistleblowers. Obviously they haven't paid out any yet for amc in gamestop, but there are a lot more awards going around and a little bit lower down. He does touch specifically on amc and gamestop and why the sec haven't done anything about it yeah, but we've also seen higher fines as well.

There's been a lot of companies like robin hood, for example that have had much larger fines than previously seen. Obviously, they're still not big enough yet, but at least he's making some headway so far every proposed rule has been pro retail, which i do think is very very true. A lot of the recent rules have received a lot of pushback from large hedge funds, but ultimately they have been good for retail, this rule to increase short selling disclosure and also rules 010 and 803, which introduced those sfts to prevent a market crash. In the event a hedge fund gets liquidated are both pro retail rules.

Every major director at the sec has been replaced. The general counsel for enforcement also got replaced as well. Clearly, if gary gensler doesn't like what they're doing and how they're working with wall street, then gary just gets rid of them, he's vocally pro retail to the point that cnbc has done some sus editing out of some of his statements. There was a point where gary gensler talked about bad actors and referred specifically to hedge fund, bad actors, which cnbc edited out, and gary gensler reiterated.

The man came in probably said screw you to some blackmail attempts and then got to work and has been very consistent since then. We haven't heard anything about gamestop and amc, because the investigation is under wraps and is being kept secretive by the department of justice. People are mad because they aren't seeing anything happen yet, which is the same as what gamestop is doing, but we have to be patient. These are some of the hardest criminals to catch in the world, and the department of justice is going hard after wall street, which means the sec did something that worked all the securities fraud stuff goes through them.

We know the department of justice is looking into short selling those the guys that have the rights to make criminal prosecutions and actually go and arrest people all the sec can do is issue fines. Clearly, gary gensler and the sec did some investigating and they found some stuff that wasn't just worthy of fines but worthy of criminal imprisonment. I do think that at the moment it doesn't look like gary gensler has done much and if not anything, but i do also agree that these things take time and they're not gon na happen overnight. If you've seen the harry potter, films, you'll know that snake pretended to betray dumbledore and then actually eventually betrayed voldemort for dumbledore.

Maybe this is the exact same thing going on just with gary gensler and in real life, not in the harry potter films. Ultimately, i think this message here is very very important. It says i will not fold a royal flush just because my opponent chooses to increase his bear. This is obviously a poke reference, just because your opponent is increasing.

His bet doesn't mean that he holds a better hand than you, especially if you hold a royal flush, he could think he has the better hand or he could be bluffing entirely, but just because he's increasing his bet doesn't necessarily make him right. I do think that amc is the royal flush just because the hedges are piling in more and more and more money trying to push amc down, they're just trying to scare us off. But ultimately, we hold the royal flush and we will win guys be sure to. Let me know down in the comments below whether you think that gary gensler will cause the amc squeeze and as always guys.

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