Securities and Exchange Commission (SEC) Chair Gary Gensler has issued a curt statement warning against nefarious activity taking advantage of the current banking crisis. Gensler stated:
“In times of increased volatility and uncertainty, we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly. Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws.”
During times of heightened volatility, bad actors may seek to take advantage of the market activity. While Gensler did not mention any specific events, the warning aims to deter any individual or firm seeking to benefit from the challenging situation.