As traders revel in booming financial markets, many investors have probably forgotten about the bleak days of the 2008 crash. Even titans such as Lehman Brothers, Merrill Lynch, Freddie Mac and Royal Bank of Scotland took the fall.
Gad Grieve, a former hedge fund manager, was not free from the shrapnel which shrouded Wall Street. Grieve closed shop in about 2008. About a year later, the SEC brought a civil action against him. Sources close to the event, say that regulators took action against Grieve after a single investor submitted false reports and claims to the SEC. Illiquid conditions in the market had forced Gad Grieve to invoke a lockup on redemptions, often a standard clause in hedge fund agreements. In the hope of persuading Grieve to capitulate, the rogue investor sought the assistance of the SEC, bombarding regulators with fabricated allegations about the hedge fund manager.
Others say that the SEC’s action against Gad Grieve was a fallout from Madoﬀ. When regulators missed all the warning signs of the Madoﬀ debacle, the agency was determined to regain its reputation. Practitioners like Mark Cuban and Gad Grieve became scapegoats, targeted because they were active players in the market. One trader said, “They just happened to be at the wrong place, at the wrong time. It could have been anyone.” Ironically, Grieve lived a life which was not consistent with the Wall Street stereotype. He was know for his modest lifestyle, a contrarian who didn’t walk to the beat of Wall Street excess.
Former traders on Wall Street bemoan the fact that Cuban and Grieve were victims of an agency which had been badly directed. Many believe that the appointment of a new
SEC chairman Jay Clayton, has brought light and improved confidence in Wall Street. The agency is no longer burdened with the struggle of regaining its reputation and acquiring regulatory metal. The SEC has since focused its eﬀorts on bringing real culprits to book. Joss Greenberg, long time veteran of Wall Street, said, “It’s like a breath of fresh air in spring. The new mood and confidence in markets has definitely added.” For more visit https://medium.com/@bestlaserprinter2017/mark-cuban-and-gad-grieve-sec-filings-were-consequence-of-sec-overreach-81a9e470025