you discuss said you want to see gary gensler. i have a lot of viewers who would love to see him too. i've been asking him to come on the show. what is the difference between me and sbf. >> i hope some of your viewers would be able to get in front of gary gensler. some of them have, but it is a lot harder when you're retail investor, a lot harder, no question. charles: okay. so, john, the retail investors are being overlooked by the sec. the people who helped build this, you know, listen, there is a system in place, right? not everyone with curly hair, overweight, birk ken stocks and caulk around to get a 32 billion-dollar valuation. there are smart people that have to look at the books. have you looked at the books? the liability, illiquid liabilities, the super-duper ill liquid liabilities including something about donald trump. million set -- seven million set aside. there is so. more awful on the face of it. we'll learn more. the attorneys for the southern district of new york are coming out now. take a listen. actually, we go

there is a whole controversy right now, a great story on foxbusiness.com by tom castunicci, gary gensler into his calendar, like a meeting with george soros. i don't think this was added. i could be wrong. i will look at my notes. i don't know if he added this one but the bottom line is, gary gensler met with sbf twice, once in october 2021 and recently in march iex to propose a new crypto exchange. he is not exactly unfamiliar guy who is one of the most controversial people who is facing potential civil and criminal fraud charges, could end up in jail, whose actions may have led to the, sort of disappearance of $8 billion worth of funds that will be one of the focuses we understand tomorrow. exactly what is the relationship? now we should point out, his name is tom catonicci. liz: fox business reporter, fantastic job on foxbusiness.com. go on foxbusiness.com. there is amazing articles there. >> particularly adding names n i don't want to say that this name was just added in, and kept off the public calendar. i don't know that but you know, his story caused us to look. we saw that sam ba

nats off the table all that gensler wants is to shine the light.ght is the best disinfectant >> sam bankman-fried may be on our soil soon. be in the u.s., yeah agreeing to extradition. >> what would that mean? >> i have no idea. maybe he actually would be able to make bail >> he is trying to confess his way out of jail. >> that doesn't work >> which as my friends who went to law school with me say it's ann ill-advised strategy >> there's mr. bankman-fried, perhaps back on these shores >> can we talk about jane street first? >> you need to explain what it is to people >> it was always considered to be the hardest hedge fund to get a job at because everyone is so brilliant. before we criticize everybody who gave money to sam bankman-fried, you have to understand, you probably thought they vetted him. >> what's the connection >> he worked there let's say we all feel that everybody was not showing any diligence when they put money with him well, i think that it's one of these things with the imprumater of jane street good gave people confidence. >> mor

lauren: he was there and in a wall street journal opinion piece she said gensler considered woke esg rheum as high priority and sec inspector general report she cites from october that said gensler's woke agenda was overwhelming his staff and distracting them from their mission to protect investors. now he's trying to spin this ftx drama as a ponzi scheme and a cautionary tale and not something that happened under his watch. wasn't my fault, you know -- david: woke policies are more important than doing the job you're supposed to be doing. lauren, thank you very much for that. pete hegseth joining me now. pete, i'm sure you have a opinion on this and regulators spent so much time with the very important woke policies that they led a real -- let a real fraudster slip under the radar. doesn't appear to be doing their job, does it? >> no, and seems similar already to the pentagon and sexual transition training and inclusion and diversity training. you spend -- there's only a finite amount of time for people and if you're focused on trying to remake society through social justice preroga

set the stage for us, what is the problem gary gensler is trying to fix right now? >> the real headline here is the domination of how stock trading has occurred for two decades, which was the last time the market saw an overhaul similar to what we are seeing today. he basically wants to give other players new entrants that haven't been able to build market share. a fairer opportunity or at least an ability to compete in the market, which he is saying is not the case as we see today. guy: katherine, these are big, powerful firms who will not take it lying down. how difficult will the process be? katherine: very. there have been lawsuits in pushback from the firms who will have to really think about how this impact their business model. and we have seen technology and the ways these firms have really been able to build their own revenue stream and compete in a way that they say is in a fitting retail investors. so that is i think going to be what they argue. the way that the current system works is to benefit all investors, institutional retail, and that these changes

gensler's statement? we are looking at what the sec is doing and we have a charge on a scheme to defraud investors. we are expecting the southern district of new york to also unseal an indictment later today. according to the new york times, that will include charges of wire fraud, securities fraud, conspiracy of both and money laundering. the scope of which this scheme had unraveled relative to what we know sam bankman-fried has said himself which is that he didn't knowingly commit fraud or didn't knowingly co-mingle assets, there is a lot of detail. it shows that he was responsible for what happened at alameda and the u.s. authorities weeks later are taking note. tom: things are moving so quickly with the reuters report last night and discussion at the department of justice. how is the rest of the industry going to watch these hearings today and the news flow out of the bahamas and legal authorities in the united states? sonali: one is the simple discussion about how the sec treats tokens. do they treat

sec had the tools as stated by chair gensler on numerous occasions to actually go after ftx and beginnvestigating and they did nothing. while over a million people lost billions of dollars. their life investments. their retirements, their futures, their businesses. it's agreen just. >> bret: here is our legal he'll jonathan turley on this arrest. >> this is the first time in my memory that prosecutors, rather than a defense attorney, stopped someone from making self-incriminating statements. this was a windfall opportunity for the prosecutors. he was willing to go forward with hours of rather ross till cross-examination on every detail in the case. why wouldn't you want that to happen? that's all admissible. >> bret: democrats 45 democrats, 6 republicans, totaling more than $65 million to individual candidates as well as political action committees. is it possible that that has something to do with this? >> well, as i said, i will not speculate on the timing of it. just say it's very, very curious in terms of the donations. i certainly have taken none. but there were those taken. what

bankman freed took from ftx. >> you read the -- you read what gensler said there's nothing.e great houses, maybe airbnb >> yeah. >> there's nothing there's nothing. i mean there's nothing my guys say there's nothing. >> well, there's some apartments those can get sold >> those are apparently not -- you can't even get to them this guy wy clever he was clever, more clever than -- than boskey, more clever -- i don't know, he is more clever than all of these guys >> we will see how clever he is. we will see how long he spends by behind bars potentially or whether to your point he gets off. >> could buy you a smucker's uncrustable and then you get change >> very nice >> speaking of which, jim, what's on "mad" tonight? >> i don't even know okay no, i have david gibbs >> oh, yeah, they raised their long-term guide today. >> the guy is great, the quarter is good, pizza is great, kfc is delicious. just don't take the skin if you are worried about your weight. i want everyone to write down a word, okay i want you to write down, retadatrudi. you can get it in this trial wi i will leave

why is gary gensler editing out important meetings that he had so that the rest of us cannot know whoe's talking to in the middle of all of this? >> you know, maria, it's always the coverup in politics that ends up getting people and there is no no reason why this should not be publicly disclosed, it shouldn't be out there. if the meetings were on the up and up, why try to hide them? similarly, i look at what the white house press secretary said yesterday when asked about this. she hid under saying -- underneath saying she couldn't answer the question. it makes me more and more suspicious that democrats aren't willing to take this head-on saying this is fraud and you should return the campaign finance money and leave it at that. maria: return the money. dagen, final word. dagen: you've got to watch all morning. i heard brenberg earlier. when he wasp imitating sb -- when he was imitating s bf saying i just don't know, he p wewent to a southern accent. >> you went to fox and friends first this morning. dai.dagen: i've got to say, southern people know better. >> i've got a minnesota acce

>> yeah, look, gary gensler will have to come before the committee. how did the sec miss this? a lot of my colleagues say we have to protect retail investors. you protected retail investors by not even providing clarity so they can participate in this market space. some of the most sophisticated investors just last january were part of the series c funding for ftx. so how do you miss this? did you really do underwriting? what kind of tools could we put in place to make sure if there was fraud it can be detected better? charles: yeah. >> clearly we have to not lose sight of the fact, this was a plain fraud as john ray said. just old-fashioned embezzlement. you have to follow the trail on that as well. there weren't same tools in place on crypto there in stocks. charles: by the way you don't protect the public offering them stocks so egregiously overvalued the only people that make money on it are venture capitalists and wall street. it happens over and over again. last year 1033 ipos around spaces, 90% in the garbage. if they want to protect investors, really protect this facade

let's go to gary gensler as we reported a couple of weeks ago he has plans to redo the market in a majorntially effects retail investing. he will tell you that so much of retail order flow that buys and sells of average people, get processed in these sort of dark pools. no one really knows what they are doing. those whose screwing who, how much money the dark pool operators or the market makers like citadel and virtu are making, are they skimming profits that should go to these small investor? he wants to push all of that into some sort of a public auction market. it's a huge change in the way the markets have worked. since i would say 2004, okay, sec has setup the securities and exchange commission has setup a sort of system where markets compete with each other for pricing, and it's the companies that the brokers send it to the place where they can get the best execution. he's saying now i want everything in the public realm. we should point out there will be tremendous pushback from congress on republicans. they say just tell us where, in fact, the ripple shohei ohtani curriculumming.

we have no obvious regulator on this i know chairman gensler at the sec claims jurisdiction. dubious proposition. let's end the ambiguity. stable coins, the heart of that is disclosing the assets that are backing the stable coins full requirement that they be backed disclosed. audited. that solves a lot of problems. and that's where we should be going. >> senator, aren't there times where investigators look forward to letting someone testify in front of a house hearing under oath because they're going to say a lot of things they might not say before the authorities are actually called in there's a huge uproar that the doj -- the day before it was going to happen they decided to move i don't know what would have come out about political contributions or anything else, but is there anything -- does it smell weird? is there anything going on when they're ready -- the grand jury met on, what was it -- >> the 9th. >> they were ready to go, i why understand that. one more day, would that have made a difference if you let this guy come on and just -- knowing him he would have said a

gensler early and often. we will hear from him on how we can provide clarity on the application of our securities laws to trading platforms, which he has failed to do. the financial security commission has an important role to play in this fact finding mission, which we will start today. we will continue as we work towards a legislative outcome to prevent this from happening again. thank you, madam chair. i yield back. >> i want to welcome our witness for this hearing, john j ray the iii, the chief executive officer of ftx group. without objection, your written statement will be made part of the record. you will have five minutes to present your oral testimony. you should be able to see a timer that will indicate how much time you have left. i would ask you to be mindful of the timer so we can be respectful of everyone's time. mr. ray, you are now recognized for five minutes to present your oral testimony. >> chairwoman waters, ranking member mchenry, distinguished members of the committee, thank you for your

how does gary gensler do that? are they domiciled in dubai?athan: i'm sure that will be part of the conversation. tom: binance is join norma's compared to ftx -- is ginormous compared to ftx. can we talk about argentina? the streets were absolutely packed. that performance yesterday was just phenomenal. tom: is his career at an end? jonathan: i thought it was and then the 35-year-old has rolled back the years. big time. from new york city, this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create it's official, america. xfinity mobile is the fastest mobile service. and gives you unmatched savings with the best price for two lines of unlimite

gary gensler in a statement says his patience is growing thin, to comply with regulations and from myattorney in the space representing clients that is not the case at all. companies and people are willing to comply but there needs to be clarity on registration, disclosures and based on what we have seen over the last month some of the focus needs to be on things like proof of reserves, financial disclosures, how customer assets are segregated and not used by our company so there's a lot of things regulators can do to prevent the harm we've seen over the last month. charles: there are a bunch of folks on the hill who want to ban crypto altogether. we talked about this the last 2 or 3 years. that is a little bit cocky. could it be nipped in the bud? could lawmakers find a way to derail this revolution? >> other countries have tried. i don't think it would be successful. it is as decentralized -- it is a hard thing and the conversation, the idea of banning a technology or industry because something fraudulent occurred in the industry is so off the point and after bernie madoff and and r

the chairman of the sec, gary gensler, updated his public calendar to leave out mentions of high profileo did he leave out? lauren: some high-profile people, hillary clinton and george soros, the largest democratic donor, fox news digital noticed and got hold of his public calendar and how it differentiated with his private calendar which did have a meeting listed with clinton in august 20, 2021. the public calendar did have soros on it but didn't have what the meeting's agenda was about, the spokesman says the updated calendars change from time to time but if you look at fox news digital they look at the archive copies of gansler public calendar and show he met with speaker nancy pelosi in september 2021 so if you are so transparent you are an apparatus of the government, federal agency, shouldn't you be transparent with people looking at who you are talking to and why? stuart: and why did you not report this meeting? susan: the infamous meeting with ftx. there was a debate whether this was planned, orchestrated, did spf pay to get the meeting will influence to get the meeting with gary

gary gensler and regulators, some of his schemes were pretty egregious had fairly apparent. go after bad actors in congress. we should not absolve the regulators. they missed some glaring red flags and should have caught this earlier. we 28 gary gensler is chairman of the sec. we will talk to doctor marty makary about long covid. in a report that it contributed to thousands of deaths in the us. in the projects that power our economy. from the plains to the coasts, we help americans invest for their future. and help communities thrive. cityserve, started rescuing women, children and the elderly. and as winter approaches, they need our help more than ever. from your neighborhood to the nations, cityserve international providing food, shelter and transportation to millions through a vast network of churches. help us serve the people of ukraine this winter by donating help us serve the people of ukraine this winter by donating now, go to cityserve.us to give. i'm not a doctor. i'm not even in a doctor's office. i'm standing on the streets talking to real people about their heart

they're not complying so gary gensler and the s.e.c.ccasional enforcement actions, which gets everybody all atwitter, but the point is if we have the laws and people aren't complying, we need to close that gap and find some way, either through explicit guidance or through more enforcement where people begin to comply. by the way, if gary gensler is wrong and the laws are insufficient for one reason or another, that's where we come in we have to plug those gaps with new legislation. >> to quote from your colleague one more time, he basically said lit let's not arrest sam bankman-fried but still pass regulation is the final version going to look like something he would have been, like, yeah, this looks great, i'd be fine with this >> look, our job as government is to keep people safe, right? we need to stop fraud. we need to make sure that people aren't investing their life savings and, you know, fraudulent or wildly volatile things it's up to the market to determine whether there is a use case for crypto. it's not up to me or brad sherma

i think gensler now has the excuse he needs to be who he always wanted to be, which is an enforcer and wait a second, he's jamie dimon number two. >> all right jim, thanks. we'll see you in a couple minutes. quk x"ilbeig bk. getrefunds.com y you for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms and submit the application. that easy. getrefunds.com has helped businesses like yours claim over $1 billion in payroll tax refunds. but it's only available for a limited time. go to getrefunds.com powered by innovation refunds. i think i'm done. honey? what? i'm shopping for gifts. i need a softball bat, table tennis table... hold up. what site you on? charles barkley? you got to go to dicks.com. dicks.com, why didn't i think of that? they got all the sports. and one-hour pickup! well, that means it's showtime! oh, okay. ♪ whoa! [barking] charles barkey thinks you're crazy, but i like it! every holiday search starts at dicks.com. you're puss in boots? chno habla english.ks y

so the real question is, is it a gary gensler thing? and exchange commission thing? maybe both. but clearly things -- if fraud happened here, we did not have the right structure in place to detect it. i mean, he bought substantial portion of of block bi, he brought a brokered dealer, how did those things go through s.e.c. scrutiny and none of this get detected? maria: unbelievable. >> i think there are a lot of questions. >> there's also the specter of why this guy got to tell his story yesterday at the new york times summit. i'm all for journalism. if you have the opportunity to get a big get like sam bankman-fried and you get to interview him for a journalistic endeavor, i get that. this was a money making endeavor. i think it sends the wrong message that you can he defraud people of billions of dollars and get to at tell your story ia friendly environment. >> the coverage has been giant fluff pieces from virtually everyone. people look at the media and go what's up with this guy? it kind of shows this woke i'd controlling, if you're

they had put all kinds of recommendations, administration had done it, gary gensler talked about it a lot, but they were just trying to decide how to do that when this happened. is it still is an investor thing. they have laws they can use to apply to this guy and probably they got irritated he was going around talking to everybody and his mother about this situation. and so i think they probably were, like, enough is enough, let's put him in jail. it is not unsimilar to bernie madoff or many of the others who have been convicted of similar crimes. >> kara, that's what stuck out to me was just in recent days he was saying i don't think i'm going to get arrested, i don't think i'm going to be detained if i came to the united states. he's supposed to be testifying before a congressional hearing today, but he was set to do so over zoom. i wonder how much damage all the media interviews, all he's been doing, could be a factor on top of what the allegations are he's facing. >> mm-hmm. absolutely. he's just convicting himself over and over and over again. and saying he didn't think he was g

folks, coming up, gary gensler & company considering proposals they say is going to help you. a little bit more of lip service but that's all. my takeaway is next. ♪ what should the future deliver? (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... ...security... ...protection? you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit goldhub.com. [ marcia ] my dental health was not good. i had periodontal disease, and i just didn't feel well. but then i found clearchoice. [ forde ] replacing marcia's teeth with dental implants at clearchoice was going to afford her that permanent solution. [ marcia ] clearchoice dental implants gave me the ability to take on the world. i feel so much better, and i think that that is the key. you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut

gary gensler, the enforcement director, and david hirsch the head of the crypto unit have all said thato intermediaries need to get into compliance and they keep saying the same line over and over. the runway is getting shorter. >> john, what do you make of the dinners and the meetings and the like with gary gensler, with the general counsel who is leaving the s.e.c. is that -- it doesn't look good. it's worse than that it's better than that. you want them to have relationships. you don't -- i can see all sides. i'm curious where you land >> sure. i'll tell you exactly where i land, i would be shocked if they didn't have meetings with all of these people we used to routinely call in all of the general counsels of all the brokerage firms and sit down with them and ask them what doing right and wrong, what they thought we were screwing up. it's important that sort of outreach you try not to meet to fraudsters -- >> what about the dinner piece does it matter >> no. >> i've had meetings with all sorts of people over dinners and meals and all sorts of things. >> i never did that. i never wen

. >> well, and now we got gensler talking to "the times," arguing that the existing laws may be sufficientven though a lot of these guys -- >> i said -- i said, why don't you come on and enforce them i think they need to do a big sweep. they have to stop having people creating money, carl it's the creation of money by cretins. i don't think cretins should create money and then suck people in. these are worse than even the worst nasdaq stocks, and yet there we are we've got them up there. lightcoin. how about dark coin? solana i don't know how about selena doesn't matter >> one interesting tidbit from "the times" today is that ellison and wang entered their guilty pleas on monday but they didn't docket it because they didn't want to tip him off before getting him back in the country. >> they turned pretty quick. they're friends. i mean, i get -- they just flipped. >> yep >> i mean, they flipped so quickly. and we're not done there's going to be a big sweep of all these firms, because these firms are, in many ways, tied in with each other to keep the price up and i know that, and so does the

then you have the sec and gary gensler basically going on a crusade to put everything under his jurisdictionls out there. we have the verdict from the library versus sec take. decentralized, a tool you have tokens that allow you to put videos in decentralized network. sec come along said, well that is a securities contract. i'm sorry as someone who got involved with library in 2017 before i knew these things supposedly had monetary value, it is crazy to me to think that the sec thinks people are getting involved with these accounts as like some sort of a financial contract? charles: right. >> these are tools. these are actually utility tools that are enabling people to access a decentralized world. politicians just aren't getting it. they're trying to keep it all under their control. charles: either they're not getting it but they get it. they and their backers are really afraid. come this far. they didn't see this happening naomi. maybe this is the last chance to nip it in the bud. you're so fantastic. thank you so much, my friend. >> thanks so much, charles. charles: folks we'll be right b

you even took a 24-part online court with sec chair gary gensler on this.n october of last year. the market peaked in november, so just a month after jacob silverman, my colleague and i, wrote our first book, warning celebrities about the dangers of these cryptocurrencies and whatnot. since then, the market has lost 70 to 75% of its value. that's just the value on paper. cryptocurrency is this opaque, largely unregulated market. so you can't even fee if the numbers are real. >> i wonder how you think you saw this when so many other celebrity have been pushing it, have been hawking it, encouraging their fans to get involved in this. how were you so skeptical of it in the first place? >> i have a degree in economics. i like to say the book i'm writing is about money and lying. i know about money from my economics degree and from making a little bit of it with 20 years in showbiz. i know about lying because i do it for a living. as an actor, you're aware of what people are doing and how they're using language. language is an incredibly important tool that we d

to make venture investments real estate purchases large political donations a "from a sc chairman gensler the presidentx operated behind veneer of legitimacy that wasn't just thin it was fraudulent the collapse highlights very real risk that in registered crypto asset trading platforms can pose for investors customers alike last name for shadows how regulators of use this in their case for regulation sec having filed by cftc u.s. attorney's office for southern district york the latter what programmaticed the arrest by bahamian police last night we indictment released, wire fraud conspiracies to commit wire fraud, securities fraud as well as money laundering if indicted on number of counts could face life in prison without prospect of release the question of ex, tradition bahamian authorities confirmed plan to cooperate once a request is filed they are pursuing their investigation could complicate timing of that extradition slightly, the speed of chafrnlz everyone going it took so long this was pretty quick it takes time to build a case, accounting experts tell me there were complete, this

gary gensler, who was one of the leaders of hillary clinton's campaign is now the chair of the sec. some type of a relationship with sam bankman-fried, like to get more insight on that. and, of course, how did all of this money get freed up to be able to donate to political candidates. pete: yeah. >> that process and also really who was doing that. pete: a lot of questions to be asked and answered, and it'll be very interesting to watch that. i've got to ask you though, i feel like i'm maybe thinking our audience is thinking as well. you had a great run for governor. you are probably the reason why the republicans hold the house of representatives, your strong candidacy brought a lot of new york republicans across the finish line. what's next for you? you're going to be in this hearing because this congress is still ongoing, but what's next for lee zeldin? >> so as you know, i have 16-year-old daughters. they were with me when i was with you at jones beach for that amazing florida-georgia line, dan and shay concert when you were up on stage, i have to get them their learner's permit

think that for one example, the relationship between sam bankman-fried and the chair of the sec, gary genslerey were meeting and they were working together. maybe there's questions that were going to get asked that the government didn't want -- i don't want to start speculating as to what the motivations were because we don't know. i just believe that the timing wasn't a coincidence. >> neil: congressman zeldin, you don't want ronna mcdaniel to stay as the rnc chair. you don't want the job yourself. you still feed that way? >> i believe we need new leadership at the rnc, this is an opportunity for the party to grow to improve messaging and not just articulating what we're against. joe biden, the democratic party. let's talk about what we're going to do differently. when you're trying to elect a republican president in 2024 and republicans to congress, there's a lot more that the party can do to be able to reach out to democrats and ticket splitters while trying to energize the base. there's so much at stake in 2024. i believe that having fresh blood and new leadership is an opportunity for ou

some of gary gensler but the fact of the matter is these people seem so confused. they seem so lost. one after another. i don't understand blockchain. i don't understand crypto. let's just rename it. it's no good. we don't like it. just because you don't understand it, doesn't mean we should not have it. these are the people that are supposed to save us, liz. we'll see. liz: i was stunned by one congressman who must have said four times "i don't understand this whole crypto thing." charles: [laughter] why is he on the committee, right? bring someone who knows. liz: at least don't admit it. charles: yeah. liz: all right, charles, thank you very much. charles: see you later. liz: now you see the rip roaring rally and now you kind of don't. stocks are pulling a harry hudin i as we kickoff the final hour of trade and looks to end a slow walk. where is the 700 spike we saw this morning on the dow after the read on consumer inflation for november? we got it up 32 points that's it take a look at the intraday at one point the blue chips were 712 points above the 34,000 lev

gary gensler refuting accusations that the agency failed to prevent crypto firms from misusing customerrld after all. disney is increasing ticket prices again, the single day particticket hike hitting multie parks. prices range from 124 to $189. annual passes reaching upwards of $1,300. meanwhile, disney rolling out its new ad supported subscription option in the united states for disney plus. remember that business, maria, lost 1 and-a-half billion, led of to the return of bob iger to right that ship. this is how they're righting the ship you i goes. there's dish disney, the stock p three quarters of a percent in the premarket. i can't believe the prices for disney world. who can you afford that? maria: that's incredible. cheryl: these are families, kids. come on. maria: it's gotten very expensive. thank you so up. special presidential envoy for climate, john kerry, has been pushing the energy agenda for the last two years aggressively. he claimed yesterday the global green energy transition is happening too slowly. >> we can't run around and do one bespoke deal here, another be. anoth

so it's important that they come into compliance, as chair gensler has made clear, the runway is gettinghorter for them to come in and register with us. for those who done, the enforcement division stand ready to take action. i want to recognize our incredible team responsible for today's action. definitely sue, ivan snyder, pascha salimi investigated this matter under the supervision of amy hartman, michael brennan, jorge, and david hirsch, amy burkeheart will lead the litigation against bankman-fried, and finally, i want to commend or partners here at the southern district of new york under the leadership of damian williams and our partners at the fbi and cftc. this is yet another strong example of the collaboration that you see before you this afternoon. with that, i'll turn it back to u.s. attorney williams. thank you. >>> i'd like to welcome questions from. >> from the fbi and the s.e.c., going through the criminal charges against sam bankman-fried, going into detail about the scheme he had orchestrated for years now to defraud investors. and we're also talking about campaign financ

ftx is clearly a male and seven years later in a hearing i pressed chair gensler whether he needed newto monitor our could grow exchanges. he said no. he had enough. he had what he needed to do his job. so now the scc chairman will have to come back to congress explain why if he had the laws he needed, why did he failed to foresee and prevent this meltdown? for two years now i have been saying the same thing. we need clear crypto regulations that protect consumer integrity, the prevent fraud and abuse, and that ensure that the u.s. dollar remains the world's reserve currency. we have yet another exclamation point after ftx committed some of the oldest crimes with some of the newest technologies. >> all those oldest crimes, newest technology. what do you think accountability should be for? them earlier -- told founder of ftx of the company sounded like a bunch of kids on adderall having asleep over. >> what we're hearing from the new ceo of ftx, from his disclosures, is that the fraud and crimes being committed by ftx and without precedent, and they need to be prosecuted to the fullest

very good job so those be the two front-runners and i think if you want to further handicap gary genslere shot, but the news of the day, neil, is that it's moynihan on that short list and that's if yellen does step down. again, lots of speculation about her. she's come out and said i have no plans. not exactly in denial but you know, it's her call. we should point out that moynihan is a democrat. he's one of the more successful bank ceo's. he's been there since the financial crisis. he's led bank of america out of some of the depths of the financial crisis, so he's a pretty capable guy. the one thing he has against him , if yellen does step down, and this is a common theme in the biden administration, is he's a white male, to be quite honest with you, and he's really tied to wall street. those two things put him at odds with the progressive wings of the democratic party but he's got a lot of supporters internal ly and he's got, you know, if you put his resume up against gina romando who is very capable, his resume is tough to beat given all he's done at bank of america and what he knows

>> there is a lack of confidence because gensler denied the conversion that is one.ich is one of the largest owners of gbtc because they have some money owed to other creditors. >> it owes its subsidiary loans it $2 billion. >> that is correct that is right. so, genesis lending was the world's largest crypto prime brokerage. it took in short-term liquid deposits from the gemini earn program, and then it made long-term illiquid loans to hedge funds and it blew up, why, because they were betting on the discount to close. and financing that with leverage from what? genesis lending. the parent company of genesis and gray scale also bought $780 million worth of gbtc they're making the same trade and they borrowed from genesis they bought an average purchase price of $40 now it is $8 unrealized lost of 80%. >> so can they hedge any of that loss some amount is bitcoin going down and so is the premium >> that is correct. >> are there short bitcoin is there any way to lessen the situation. >> dcg's financials are private. they could attempt to hedge that but they were betting

i went down the rabbit hole, i took gary gensler's course at m.i.t. on crypto and block chain.i had time on my hands and took the course. i had more and more questions and by the end of it, i finally concluded that this was at least a speculative bubble at a minimum. a massive one. and at worst, a speculative bubble built on fraud. and so, i reached out to a journalist and i'm writing a book about this. >> you mentioned some of your credits here. you make an admission on twitter. you say, i'm a former teen adoll, standing here, at the possibility of fraud. don't take financial advice from celebs, including me. why should people listen to you now? >> they would have saved 75% of their money. i started writing articles in october of last year. the crypto market peaked in november. i don't want to brag. but we top-ticked the market, somewhat coincidentally. since then, the market has crashed. unfortunately, even the numbers that you see in crypto currency are most likely untrustworthy. once you put your real money into an investment that is being run through the bahamas, like ftx

the sec has the power, could have forced compliance but didn't, and the chairman, gary gensler, toldshington post," oh, i couldn't be prouder of job we've done. >> crypto is very dangerous in the sense that this type of ponzi scheme with something that illuminating how you can take advantage of the system. and, you know, look, i don't think that a regulation is necessarily going to fix that problem, but i do think that, you know, as much as the advantages of crypto and blockchain technologies are very, you know, much, i think, something that could be advantageous to us in the future. we do see the potential for these types of ways to exploit the system, to take money from people, to not have backing for it in 'ems of my kind of real fiduciary involvement. and, look, this is the worst case scenario in a lot of ways. it's going to end up, i think, driving people away from crypto, making them suspicious of everything. and, look, if south park predicts the future, whole fortune favors the brave misquote that matt damon had is going to be one that i think we all regret, look back on and l

i guess the further down the list is gary gensler, the sec chief.l guy for a lot of reasons, diving into woke disclosure mandates and esg stuff but he did work at goldman and he has some allies including elizabeth warren believe it or not so those are the potential replacements. some of this also, gerry, is going to be yellen's call from what i understand. clearly, there's a movement they would like to see there are people in the white house who would like to see her leave. they want her to leave on her own terms but from what i understand she's not going to make it through next year. >> gerry: very briefly, charlie, you talk about all the people with real-world experience and one of the names mentioned and i think he's a favorite among progressives in washington is brainard, the vice chair of the fed. is she, is that idea going away? >> i don't think she's going to get that. she's just, that was just not on the list of that job. it maybe another job. it maybe fed chair which i think is where she's kind of heading towards she's obviously the vice ch

as chair gensler has made clear, the runway is getting shorter for them to come in and to register with us and for those who do not, the enforcement division stands ready to take action i would like to recognize the incredible team from our crypto assets and cyberunit and across our unit responsible for today's action devlin su, david brown, brian huckrow, hasha saleema investigated this matter under the supervision of amy heartman, jorge brennan, and david hirsh, amy burkehart and david daddio will lead the litigation under the supervision of ledan stewart and olivia che and i want to commend our leaders under damien williams and our partners at the fbi and cftc this is another strong example of the collaboration you see before you this afternoon. with that, i'll turn it back to u.s. attorney williams thank you. >> i would like towelcome in gretchen lowe from the cftc. >> good afternoon. i'm acting director gretchen lowe of acting director of the division of enforcement. thank you so much for the opportunity to speak today today, the cftc filed a complaint against sam bankman-fried and

sec chairman gary gensler said bankman-fried built a house of cards on a foundation of deception.eges that bankman-fried diverted his customers' money to his private hedge fund, alameda research. that money was then used to make venture investments for his own benefit, buy lavish real estate and give large political , contributions. and when investors became nervous about whether ftx had sufficient funds, they pulled their money out, triggering the collapse. at a new york times event earlier this month, bankman-fried denied knowingly defrauding investors. instead, he blamed the implosion on sloppy accounting and a failure to appreciate the risk. sam bankman-fried: look, i screwed up. i was c.e.o. i was the c.e.o. of ftx. and i say this again and again that it means i had a responsibility, and i was responsible ultimately for us doing the right things and we didn't. we messed up big. john: the 30 year old could spend the rest of his life behind bars. bankman-fried had been set to testify today before the house financial services committee remotely from the bahamas. >> the scope of

filing charges along with the southern district of new york, the attorney general, sec chair gary genslerusing bankman-fried of orchestrating a year-long fraud and moving ftx customer funds to personal hedge fund alameda while simultaneously defrauding investors and raising $1.8 billion. the southern district attorney general accusing sbf wire fraud, securities fraud, money laundering amongst the long list there. stuart: isn't that an old picture? he's gained a little weight since then i believe. >> [laughter] regardless, sbf yeahs arrested last night by the authorities on charges filed here in the u.s. pending extradition to stand trial there. the bahamas wants $256 million in real estate back and i'll tell you this , because i was in the bahamas at the crypto bahamas ftx event and i actually sat next to the authorities that lured ftx and sam bankman-fried over to the bahamas and at that time, they were very proud of their crypto industry which they changed the laws to entice people like ftx and sbf to move to the bahamas there. i wonder what they probably change of heart now. stuart: bu

gensler that crypto intermediaries should be looking over their shoulder. labeled a good man it of them as crypto casinos also saying that they should come into compliance with the law and in a yahoo financial interview, yahoo finance interview made it very clear he doesn't think a good man it of them are doing that. the fallout from that after this in one second, sara yes! will get a job offer somewhere sunnier. relocating in weeks. weeks? yeah, weeks. gotta sell the house. don't worry, sell to opendoor, and move on your schedule. yes! request a cash offer at opendoor.com you ok, man? the internet is telling me a million different ways i should be trading. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. neil: all right, th

so it's imperative that non-compliant platforms come into compliance, but as chair gensler has made clear, the runway is getting shorter for them to come in and register if us and for those who do not, the enforcement division stands ready to take action. i'd like to recognize the incredible team from our cyber unit and across our division responsible for today's action. sue, ivan schneider, david brown, pash, amy hartman, david hirsch, amy burkhart and david dadio will lead the litigation against bankman-fried. finally, i want to commend our partners here at the southern district of new york under the leadership of damian williams and our partners at the fbi and cftc. another strong example of the collaboration you see before you this afternoon. with that, back to u.s. attorney williams. thank you. >> like to welcome gretchen lowe from the cftc. >> good afternoon. i'm acting director of the cftc. thank you so much for the opportunity to speak today. today, the cftc filed a complaint against sam bankman-fried charging a fraudulent scheme they expect the launch of ftx.com change in may 201

the commerce secretary a rising star in the biden administration, and i think to some extent gary genslerwould say he's a dark horse candidate for a lot of reasons. there's problems with republican s, don't like him, a lot of democrats don't like what he's doing with the market structure, we've done those stories here before but he is on the list as well, but moynihan is an interesting choice. i mean, again, he's a bank executive. he might annoy the progressive base of the party who hates bankers, right? elizabeth warren, she often has a say in economic picks. he's a white male, to be honest with you in this very woke administration -- >> cheryl: doesn't help him. charlie: it's not a positive, but he does have a great resume. he runs the nations second biggest bank according to assets 2.3 trillion under jpmorgan i think 3.3 trillion. he is a democrat. he has plugs in washington and he's done a pretty good job running a bank and he kind of need someone with real-world experience and the biden administration might just go there if they reset next year, and but again, a lot of this is from w

so it's a ponzi scheme and implied in the same bank when precrisis scam is none other than gary gensler. over at the s.e.c. who should have been calling time on this along to go. but we find out that he's actually involved and that there's some wha hlst i callusi. collusion. and the problem is in america, you have a country that's ruled by a kleptocracy. every institution in america cleptocracy. all ti is tied to wall street in some way. they've all been financial lies. they all use cheap money. they're all cross collateral in each other's assets. they're all using that money to buy real assets and they're t all undermining the economy in fundamental ways which lead to inflation. which lead to unemployment,me ntwhich lead to all kind.s of alsfunctions in the economy, in our medical system and all acrossl institutions. it all goes back to essentially the deregulation that happened 40 years ago, which led tos the financializationago le and e over indebtedness, the over leveraging of the economy. and now in twenty , twenty two , since interest rates are going up, that's the end of the mira

he knows the democratic partyws in the sec and his friend gary gensler won't touch him. so watch sam bank winfriednkmanr explain. >> he's not very worried about criminal charges. chow concerned are you aboutthn criminal liability at this point? >> so i don't think thatt i mean, obviously, i don't personally think that i have, k you know, but i think the real answer is it's not.weir it sounds weird to say, but but i think the real answerlo is that's not whatok i'm focusig on . >> i mean, look, i've had a bad month. ghter] this is an opportune time. but that's not what matterse an here. i've had a bad month.ourney, it's all about me.bu and my personal journey. regulat but being held accountable i paegulators, the justice department, the u.s. congress, these are my friends. >> i pai r them. boy, if there's ever been to ge a clear window into the deep corruption we really need to get rid of if we're going i to return to representative democracaty. nfident is that right there?ths soun same bankto and food seemud confident. these untouched people that he admitted in publics to