YOUR HEADLINES.
MARIA: THANK YOU.
DOUBLING DOWN ON
GAMESTOP, A REDDIT KEITH
GILL ALSO KNOWN AS
MARINE KITTY BUYING
50000 MORE SHARES OF
GAMESTOP DOUBLING HIS
INVESTMENT AFTER TELLING
LAWMAKERS HE WAS AS
BULLISH AS I’VE EVER
BEEN ABOUT POTENTIAL
TURNAROUND IN JOINING ME
NOW IS FORMER DIVISION
OF ENFORCEMENT SENIOR
COUNSEL.
GOOD TO HAVE YOU.
THANK YOU FOR JOINING US
SO, TELL US HOW YOU SEE
THIS WITH A LOT OF
CONVERSATION ABOUT
WHAT’S TAKING PLACE
HERE, BUT NOW YOU HAVE
READ IT DOUBLING DOWN--
HOW WOULD YOU ASSESS
THIS.
>> GOOD MORNING AND
THANK YOU FOR HAVING ME.
IN MANY WAYS KEITH GILL
COULD BE COMPARED TO A
TRADITIONAL VALUE
INVESTOR WHO TAKES THE
POSITION IN A STOCK AND
THEN TELLS WHOMEVER WILL
LISTEN WHY IT’S
UNDERVALUED AND IT’S A
GOODBYE, BUT INSTEAD OF
APPEARING ON FOX
BUSINESS NEWS YOU CAN
FIND THEM ON YOUTUBE OR
TIKTOK OR REDDIT AT
LEAST BEFORE RECENT
EVENTS, BUT I’M NOT
SURPRISED TO LEARN THAT
HE’S BUYING MORE.
MARIA: SO YOU DON’T SEE THIS AS
A PUMP AND DUMP SCHEME.
DO YOU SEE ANY ISSUES
AROUND THIS THAT YOU
WOULD ANTICIPATE NEW
REGULATIONS COMING OUT
OF THURSDAY’S HEARING?
>> I THINK THERE ARE TWO
THINGS WE NEED TO TALK
ABOUT, ONE WHETHER THERE
WOULD BE NEW REGULATION
ANY OTHER WHAT THE
ENFORCEMENT DIVISION MAY
DO AND IN TERMS OF NEW
REGULATION I DON’T THINK
THEY REGULATION IS THE
ANSWER.
THE FCC HAS ALWAYS BEEN
THAT PRINCIPLE -BASED
REGULATOR.
IT WILL ESCAPE MARKET
MANIPULATION THAT
WHATEVER FORM IT MAY
TAKE IN WHATEVER FORM
AND WHATEVER THE
TECHNOLOGY USED, IF YOU
DROP NEW RULES IT WERE
SPONSORING NOVEL
SITUATION AND THOSE
RULES WILL BE TOO
SPECIFIC TO THE
SITUATION MEANING THEY
WILL BE DIFFICULT TO
APPLY OR ENFORCE IN
OTHER SITUATIONS OR
OTHER FORMS OF
MANIPULATION IN THE
FUTURE THAT LAWMAKERS
CANNOT ANTICIPATE TODAY.
IN MY VIEW THEY ALREADY
HAVE ALL THE TOOLS IT
NEEDS TO INVESTIGATE
THIS.
MARIA: SO, WHAT ABOUT THESE
LAWSUITS ABOUT YOU KNOW
TARGETING ROBINHOOD SAYING THE
INDIVIDUAL INVESTOR WANTED TO
TRADE THOSE STOCKS AND THEY ARE
UPSET ABOUT THE RESTRICTIONS PUT
IN PLACE, WE WILL HEAR FROM ONE
LAWYER DEALING WITH A CLASS
ACTION SUIT LATER IN THE PROGRAM
WHO SAYS THEY WANTED TO KEEP
TRADING GAMESTOP AND THE
COULDN’T.
>> IN A VERY PUBLIC WAY
THE FCC HAS ALREADY SAID
IT’S ONE OF THE THREE
ASPECTS OF THE AFFAIRS
THEY ARE INVESTIGATING
MEANING THE DECISION BY
THE TRADING PLATFORM TO
RESTRICT TRADING IN THAT
GAMESTOP INCLUDING
GAMESTOP IN THERE HAVE
SAID THEY WILL LOOK AT
INSIDERS TO MAKE SURE
THEY WEREN’T TAKING
ADVANTAGE OF THE MARKET
DISLOCATION AND THEY
WILL LOOK AT THE MARKET
MANIPULATION ASPECT OF
IT.
AS I MENTIONED, I THINK
KEITH GILL IS IN THE
POSITION OF A
TRADITIONAL VALUE
INVESTOR, BUT THAT
DOESN’T MEAN BAD ACTORS
DIDN’T TAKE ADVANTAGE OF
THE FRENZY TO MOVE IN
AND THEN START THE SEVEN
FALSE AND MISLEADING
INFORMATION ON
WALLSTREETBETS OR
ELSEWHERE ON REDDIT OR
ON THE INTERNET IN ORDER
TO PUMP THESE STOCKS AND
THAT’S ONE OF THE THINGS
THE ENFORCEMENT DIVISION
WILL MOST EARLY LOOK AT.
MARIA: SO, WHAT ABOUT THE FUTURE
OF THE FCC?
PRESIDENT GUIDING TAPPED
GARY GENSLER AS IS
PICKED TO LEAD THE FCC
PREVIOUSLY SERVING AS
THE CHAIRMAN OF THE
COMMODITY TRADING
COMMISSION UNDER
PRESIDENT OBAMA.
WHAT HE EXPECTED TO LOOK
LIKE IN THE BIDEN
ADMINISTRATION AND WHAT
WILL THEIR FOCUS BE?
>> WELL, GARY GENSLER
WAS KNOWN AS A STRONG
ENFORCER WHILE THERE AND
I ASSUME HE WOULD BRING
THE SAME ENFORCEMENT OR
PRO- ENFORCEMENT
ATTITUDE TO THE FCC.
I THINK IT WILL BRING IT
A NEW PEPPER IN THE STEP
TWO ENFORCEMENT
ATTORNEYS.
I THINK WE SHOULD EXPECT
TO SEE A RETURN TO THE
BROKEN WINDOW STYLE
ENFORCEMENT AT THE FCC
HAD UNDER MARY JO WHITE
WHERE THERE’S A FOCUS ON
FINANCIAL INSTITUTIONS,
INVESTMENT ADVISORS,
INVESTMENT BANKS,
BROKER-DEALERS.
WHAT MIGHT-- MIGHT
TRADITIONALLY BE
CONSIDER THE GATEKEEPERS
OF THE INDUSTRY AND
SMALL VIOLATIONS WILL BE
PROSECUTED UNDER THE
THEORY IF YOU PROSECUTE
THE SMALL ONES, IT HAS A
MILITATING EFFECT
AGAINST YOU KNOW
OCCURRENCE OF A LARGER
PROBLEMATIC ISSUES.
MARIA: WHAT TO DO YOU MEAN ABOUT
BROKEN WINDOWS UNDER MARY JO
WHITE?
>> I MEAN, THAT YOU KNOW
UNDER THE LAST
ADMINISTRATION THERE WAS
MORE OF A FOCUS ON
FRAUD, MORE OF A FOCUS
ON MAN ON THE STREET,
WHAT I WOULD CALL MAN ON
THE STREET FRAUD, PONZI
SCHEME, PUMP AND DUMP,
THE KIND OF THING THAT
AFFECTS RETELLING
MESSENGERS AS OPPOSED TO
PROSECUTING RULE
VIOLATIONS OR VIOLATIONS
OF NET CAPITAL RULE
WHICH MAY BECOME OF
INTEREST COMING OUT OF
THE GAMESTOP A FAIR.
UNDER THE THEORY THAT IF
YOU PROSECUTE THE SMALL
VIOLATIONS, IT HAS A
PROPHYLACTIC EFFECT
AGAINST LARGER ISSUES.
MARIA: MAKES SENSE.
TO LOOK, GOOD TO GET