Welcome back to the channel everyone today i want to talk about how the sec will not save us. I repeat the sec and gary gensler will not save us, but fortunately enough, the department of justice will so stay tuned and let's make some money. So today i want to show you a few key clips from the recent jon stewart interviews with not only gary genzer, but also with rob jackson, a former sec commissioner as well. I then also want to talk about how the sec is just child's play and how these short hedge funds are, making an absolute mockery of them.

Gary gensler himself even admits that he doesn't even have the resources to be any of these funds in the courts. He also says that all the sec can do is just issue fines and can't actually imprison anyone as that's a job for the doj. So let's go through a few key clips from the recent jon stewart interviews. How are you going to be the that's? I'm like you're talking to a sheriff and i'm like the drug dealers, are out there and you're like drug dealers now come on now, let's not be unfair to them.

John you're, the cop. I understand that i understand that, but you also want somebody in my role to be successful at being a cop. Oh, my lord, so congress writes the laws we implement. Those laws.

Yes, congress lobbied by financial institutions writes the laws i i guess ultimately, what it comes down to is this is the sec the best system to to do this? I think the american public kind of gets it that the system is not fully working for them. Yes, i believe, i believe, that's true all right and that i think, is one of the biggest problems that we face. At the moment, the sec is basically on the books of these large financial institutions. These large financial institutions pay massive, massive speaking fees to people that work at the sec and also the people that vote for the sec and effectively decide the rules.

Well, i think we know 84 of the equities market is owned by 10 of the people. No, no think of it as this we're not gon na we're not gon na nobody, bats a thousand, but we're gon na every day be thinking about those working families, those retirees there's early investors in the market, but the retail investor they're at a real disadvantage and You're, the sheriff and you're outgunned. I walked into your coffee room today. There's a little sign that says: coffee donations welcome we're at the sec yeah holy now we could use some more resources, that is for sure, there's 4 500 people that are full-time here.

I wish it was more: we shrank in the pre prior administration fight and that's another massive part of the problem. The sec is so underfunded, so underfunded. In fact, they can't even afford coffee that it's no wonder that the sec can't beat these massive institutions in the courts. These giant hedge funds have basically unlimited money to waste all the amount of time that they could possibly want in the courts and end up winning in their favor when the sec can't even afford coffee, but guys.

It is absolutely okay, because conway yen just watched the jon stewart interview with gary gensler and he started a gofundme to buy the sec some more coffee. This just shows how absolutely ridiculous the sec actually is and how these giant hedge funds and large institutions are making an absolute mockery of them with all the financial shenanigans that have gone over the years. The only person we've really brought to heal is martha stewart and that's got to tell you something about just how tilted this thing is forgotten a little bit about bernie madoff. But let's also remember that the sec didn't actually go after bernie madoff until he handed himself in many people came to the sec with actual evidence and actual facts to show that bernie madoff was committing crimes and the sec simply ignored everybody.

It wasn't until bernie madoff. Actually turned himself in that the sec actually did their investigation and sent him to jail. Well, speaking of bernie madoff who came up with payment for order flow, yeah, yeah right! No! I instead, but he did serve his time in jail and everything, one guy and and one woman generally. It seems like people don't go to jail for financial crimes.

They pay fines. I think that's a fair statement. That's that's! That's fair! The department of justice has the criminal authority, we have the civil that's right and on the civil side, more than 50 of the fines levied from sec judgments are not collected. There are less financial judgments that are levied now than there were 15 years ago.

It doesn't seem like the sec, has the ability to keep up, and that is effectively it right there, gary gensler didn't deny any of that. The sec can only issue fines and they haven't even recovered over 55 of those fines that they actually issued again. This just goes to show how massively out of the sec's depth this whole thing really is now. This is a clip from the interview with a former sec commissioner, rob jackson that i think, really ties everything together.

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I i think to be fair to the sec. As you point out, as you pointed out, these are folks who um who are underfunded and undermanned. I mean listen john, as gensler pointed out to you during the trump administration um, they had a decrease in their workforce of five percent, while the stock market exploded right. So asking these guys getting mad at the sec because they don't have enough money to do the job holding people accountable.

In my mind, it's a mistake. Well, but let me so you you bring up an excellent point. They don't have the money or the resources, but if you are tasked with a certain job, you can either raise holy hell that it's money or you could change your model and the thing that struck me with uh, mr gensler. No offense to him is institutional thinking.

At its core that was rigid and and not willing to step outside of, i brought up this idea of the apes. They have discovered a lot of the inequities and unfairness and and outright cheating within this wall street system. That's not very transparent and and is not very open to, especially to the retail investors. That's right when i brought up this idea of like let them be a crowd-sourced way of identifying things that can help you target them more easily.

He was like, we have a whistleblower program. The whistleblower program has given out seven million dollars like it was all very by the book you're getting your ass kicked, throw out the book and let's come up with some interesting and novel ways. Your analog they're digital, like you, got to figure it out. So listen.

I think that's very fair and uh there's a whole host of things that they can and should be trying, and one of them by the way, is um using social media and trying to understand what investors are seeing and making sure that they have investigators who are Thinking through those um those alternatives, but john, i want to say something else, which is the regulated entities. They have lawyers good ones and if you go outside the box, they'll sue you and win one of the things i tried to do now, your episode's about the stock market, right it's about payment for order flow, it's about the exchanges being for-profit businesses when it's not How they start that's right, so we tried to make some rules about that and a couple of days after we announced them op-ed in the wall street journal from the chief executive officer of the new york stock exchange. Why we're suing the sec? Why were they suing? The sec, because we wanted to make some changes to the transparency, um uh and the governance of exactly the issues you were discussing on the show. So we decided we wanted to make some changes.

We made those changes into a rule and they took us to court and beat us, and i got to say john um, whatever you want to say about the sec when they go outside those lines. The regulated finance industry has really good lawyers and, by the way, not for nothing but some of their lawyers used to work at the sec and many of them absolutely and these guys go into court um and, and they often are able to keep the sec from Doing its job, i think it's a huge problem. So that's what i'm saying it. It's very clear right now that the sheriff is it's like one of those wild west towns and the one sheriff.

But the sheriff changes every day because, like they keep chasing out the old sheriff and then there's a new guy in there there's a revolving door between corporate america and the sec. So during that interview, i showed you this tweet from lisa breganca saying this is the case. He's referring to the sec was trying to implement a pilot program and the new york stock exchange itself was able to shut it down with a lawsuit. So not only do you have these giant hedge funds like citadel, trying to sue the sec, but you've even got the stock exchanges themselves, like the new york stock exchange and the nasdaq also trying to sue the sec.

And i think this is a massive part of. What's entirely wrong, people can be doing completely illegal things, but they can sue the sec and win in court and continue doing those illegal things like there's no problem now. I don't really want to relate it to this, because it's not the same and it's completely different, but it's like a mass murderer: who's killed, 50 people being captured and then going to court and then winning in court and being released killing another 50 people being captured Again, going to court winning in court again and being released again, that kind of stuff just doesn't happen, because when there's blatant evidence of a mass murder that mass murderer goes to jail and serves multiple life sentences, if there's a massive amount of evidence, they can't win In court and be set free, if there was enough evidence on a mass murderer for me to make 450 videos over the last year, that mass murderer would not be winning in court and would not be walking free. But that's what happens every single day here on wall street, but finally, what i want to show you today is this speech from the department of justice that shows that they are absolutely not messing around numerous joint task forces and strike forces dedicated to a wide range Of corporate crimes, a second important force multiplier is data analytics.

We are using big data, our own and the data of other departments and agencies to identify payment anomalies that are indicative of fraud, and we have provided the criminal divisions, fraud section with a new embedded squad of fbi agents to further strengthen our ability to bring data-driven Corporate crime cases nationwide this represents an enormous expansion of the data. Analytic work. We first applied to health care fraud when i supervised the fraud section as a deputy assistant attorney general. The third force multipliers are the defense council in this audience, or at least those of you who represent corporations and their boards of directors.

As the deputy attorney general reported, when she spoke with you last fall, we have restored prior department guidance, making clear that to be eligible for any cooperation. Credit companies must provide the justice department with all non-privileged information about individuals involved in or responsible for the misconduct at issue. This means all individuals, regardless of their position, status or seniority, and regardless of whether a company deems their involvement, as quote substantial quotes quote when the justice department offers a company the opportunity to enter into a resolution for its misconduct. It is in that company's best interest to provide us with a full picture of what happened and who was involved.

When we give a company the opportunity to come clean, it must come clean about everyone involved in the misconduct at every level. So he's basically saying that whistleblowers have to come forward or face going to jail as a result of the department of justice investigations, not just the small sec. Fines guys be sure to. Let me know down in the comments below whether you think the sec can actually help us or not, or whether it's all down to the doj and as always guys, if you enjoyed this video, be sure to check out some of my others.

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