This report is based on the brief broadcast statement of an archived recording from A Martinez.
Recently, The Tesla Inc. CEO mocked the Federal agencies which make the law of the financial market. This has led the SEC to investigate closely into his lodged buyout of Twitter.
According to journalist David Gura at the time of initiating the purchase of Twitter shares legally, it was needed that Musk files a declaration with the SEC, disclosing his purchase of Twitter stocks above and beyond 5%. Though he filed the documentation but with a delay of 11 days.
Journalist Joe Grundfest said that this appears to him nothing but a drunk shot case.
Further adding to his words Gura said that according to Grundfest who was once the commissioner of SEC the commission will be charging Musk for violating the disclosure rule. But Gura says that this step wouldn’t be enough. Elon Musk is the richest man in the world and charging some hundred thousand dollars to him wouldn’t affect him much.
Grundfest added to this by saying that for someone like Musk this amount is relatively small. It’s petty cash.
On this Gura said that the net worth of Elon Musk is $200 billion. Mark Cuban sitting over here is also a billionaire involved with the SEC and Cuban said to the finance of Yahoo! that according to him the commission’s sanctions are not worthy.
Mark Cuban said that there is no deterrent based upon the detection of the SEC or the verdict they have or the decision of the court they have. Nobody remembers them unless they are a part of the security services.
Furthermore, Gura said that the ex officio of SEC wonders whether this agency is fit to guard the world. The SEC was created ages ago to safeguard the shareholders by the Congress after the share market crashed in 1929 which lead to a loss of money for many Americans. The SEC is supposed to be a powerful association as it is both a regulatory body and law-making agency while it has very less power when it comes to market manipulation and other malfeasance. It is foolish to think that the penalties charged over the wealthy men of the country are useless as they could affect them in the future.
Christine Chung, the former advocate in the SEC’s enforcement division said that the SEC is following the age-old rules while everyone else is already moved into a new era. She also questioned if the inquiry done by the SEC is justified and legitimate despite how strong and wealthy one is. Additionally, the former advocate states that if someone thinks that the market is falsified or unjust and one can use their money and power to govern what happens to them in the market they might not believe the value of companies like Twitter being said in the market.
Advocate Mark Fagel that they have bald tools in the securities laws and they are designed to charge fraud and not something like a poop emoticon being used by someone in their message to the investors.
In addition to this Gura said that Musk’s tweet having a poop emoticon didn’t cause this unrest in Twitter’s stock price rather many of his tweets added to this. Now what he understood from Fagel’s statement is that in this new era one can mess with the market and still wouldn’t be considered a fraudster.
