The new Securities and Exchange Commission (SEC) Commissioner, Gary Gensler, will testify May 6 before the House Financial Services Committee (a committee notoriously targeted by aggressive corruption efforts from Wall Street) about what is being called “equity finance", the use of derivatives on short-term stock moves. This was the practice, using huge amounts of leverage provided by the biggest European, Wall Street, and Japanese banks, which brought on the implosion and liquidation of the Archegos hedge fund in April, with bank losses in its train which may be in the vicinity of $100 billion.
Gensler is reportedly going to promise the House that the SEC will introduce new measures to require large investors like such hedge funds to disclose their short positions and their use of such derivatives to the SEC.
One type of derivative Archegos used, called contracts for differences (CFD), is also used by banks, pension funds, and large investors under European Union schemes to force introduction of “renewable” (interruptible) energy sources, electric vehicles, “carbon farming", etc.
