Prominent investor Peter Brandt criticizes SEC Chairman Gensler and questions his ability

Mentioning Mr. Gensler during his time at CFTC

Prominent investor Peter Brandt made a statement on the 16th criticizing U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler. The move raised questions about Gensler and the SEC's ability to adequately protect investors.

Mr. Brandt expressed the opinion that Mr. Gensler was involved in the collapse of MF Global when he was chairman of the U.S. Commodity Futures Trading Commission (CFTC). Mr. Gensler is of the opinion that the company allowed client funds to be mixed with its own funds.

He then harshly criticized Mr. Gensler, saying, “Mr. Gensler is incompetent and should not be trusted as SEC chairman.''

MF Global Holdings, a major US brokerage of derivatives products, went bankrupt in 2011. The company's total debt at the end of September 2011 was $39.6 billion, making it the largest Wall Street bankruptcy since Lehman Brothers in 2008.

connection:
U.S. senators have strong concerns over a book addressed to SEC Chairman Gensler that “could undermine public trust''

Suspicions surrounding the bankruptcy of MF Global

Jon Corzine, then CEO of MF Global, was a colleague of Gensler during his time at Goldman Sachs Group. As a result, suspicions arose in 2011 that Mr. Gensler had sought favors for MF Global.

It is said that one of the factors that led to the collapse of MF Global was that it fraudulently transferred funds from customer accounts to MF broker-dealer accounts to compensate for trading losses.

At the time, the CFTC, led by Mr. Gensler, had delayed developing rules for brokers to manage customer funds. Gensler denied the allegations in November 2011, stating that the postponement was “absolutely unrelated” to the MF Global case.

Mr. Brandt also alleged that Mr. Gensler was involved in the 2012 bankruptcy of Peregrine Financial.

Mr. Gensler has also been criticized by some members of Congress and the crypto community for not providing clear regulatory guidelines and for using “legal enforcement regulation.”

Congressman Tom Emmer introduced a bill last November that would protect the cryptocurrency industry from SEC enforcement. At that time, Sen. Emmer also opined that while the SEC pursued companies that contributed to innovation like Coinbase, it overlooked companies that engaged in fraudulent activities such as FTX.

connection:
U.S. House of Representatives passes industry protection bill banning use of funds used to crack down on SEC crypto companies

Mr. Gensler's latest statement

Peter Brandt cited a video of Gensler's appearance on CNBC on the 14th and criticized him in response.

Gensler has a long history of NOT looking out for the interests of investors. Gensler was instrumental in the bankruptcy of MF Global by allowing his old Goldman Sachs buddy slimy Jon Corzine to co-mingle customer money with MF Global's own money to meet its margin call on a bad… https://t.co/ZOfntN98Xi

— Peter Brandt (@PeterLBrandt) February 15, 2024

Gensler reiterated on CNBC that fraud and price manipulation are rampant in the cryptocurrency industry. It's also a field where companies are going bankrupt one after the other, he said.

The possibility of approval for an Ethereum (ETH) spot ETF was also questioned, but the company did not intend to make any predictions at this time, only that the five committee members would discuss and evaluate the issue.

Investors are currently considering May 23rd, the deadline for a final decision on VanEck's Ethereum spot ETF listing application, as a key date.

connection:
Franklin Templeton 9th Ethereum ETF filed in the US

The post Prominent investor Peter Brandt criticizes SEC Chairman Gensler and questions his ability appeared first on Our Bitcoin News.