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FBN’s Charlie Gasparino on SEC Chief Enforcement Officer Robert Khuzami’s future once he leaves the agency.
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Weiner are what is the biggest bidding war on Wall Street know it is not the deal to take Dell product that.
It's the deal to take KH UZ private as in Robert Kuhn is on me if I yeah I -- yeah I didn't think and I thought so.
We like we he's three SEC's enforcement division -- a private practice Charlie Gasparino ticker symbol KH using he's taking.
Private as in private -- that's right.
But what you incumbent in my time -- 'cause I don't like today you too many strikes only I was gonna amateur I was gonna change pressure approximately shut up but it's okay.
They're trying to buy today placed a here's what we know about Kazaa -- because -- is a very experienced lawyer he was a long time US attorney.
Assistant US attorney were for Mary Jo White adjusting their joys and the big over at the SEC.
-- that the SEC now as the head of the enforcement division for four years he's gonna resign -- very.
Well we understand is that there's an interest in bidding war a lot of -- a lot of firms are interested in hiring Bob is only for obvious reasons that what we know -- -- He's likely to go to a New York based law firm may -- -- Washington office maybe stays -- -- what's likely to be a US -- -- New York based law firm.
As opposed to going back.
To a -- high is that he from what we we we and his from people close to -- he's very worried.
About the sort of -- the conflict of interest -- Working for Wall Street firm even though when you work for one of these major law firms right -- -- -- -- representing no well recognized that he doesn't wanna go back -- mean he got a little little look.
He got some criticism because he works for Deutsche Bank right before he came to the SE -- -- General Counsel Deutsche Bank.
At a time when you know the financial crisis going on so what I understand his first stop.
He may go back to Wall Street but his first at least this is what he's talking who knows when to draw a lot of money -- people if they do crazy things.
Is a law firm.
Preferably in new York and who's he gonna be replaced by at the SEC -- -- we keep hearing is -- I think George canals he's his assistant that would interest in about this.
At the SEC I remember a recovering if -- now offers that would cover Wall Street over twenty years.
They usually had a lot of homegrown talent particularly go to the enforcement division like.
Steve Cutler.
Became -- force -- director after build the glucose and Dave walker they all came through the ranks of the enforcement division.
This is different which you have now is guys like canals used to work for Mary Jo White as a US attorney's office -- sounds like it.
The -- level it it is like the US attorney's office for -- has taken over enforcement division.
At the SEC it's kind of an -- -- dynamic it's you know people talk about it's a little bit of insider baseball but what does that mean.
For for investors -- -- mean for the company you know you're gonna see.
A much more you can be it'll be continue to be very activist agenda there particularly enforcement actions -- up his army.
Ramp up the enforcement actions I believe they had record years in 2000 -- Maybe even this evening may -- in 2012.
-- -- likely to see because he brought a prosecutorial.
Sort of you know sort of this position -- -- was highly regarded highly regarded although we got something -- some rollback -- some stuff with Deutsche Bank but nothing ever proven but.
You know he worked for big Wall Street -- With canals and there are likely to be appointed has not been finalized -- and Mary Jo White has been appointed by the vice -- Obama she's been confirmed that -- by the senate.
That -- gonna see that same mindset continue Wall Street should expect these enforcement actions to you know the -- -- keep costs.
Of that do you think this part of it should change because I've seen a lot of questions about this.
That the SEC when they -- certain Wall Street firms they get their fines but there's no admission of guilt or -- Anything like that China or denial that it's just here's -- money leave I want you do realize what that change.
Don't know any -- it is too is a look at added if now you really do want the Wall Street firms to to pay LL Fiat to what the pay up -- -- -- you know if you if they admitted wrongdoing.
That would open the floodgates for civil litigation where they would be put out of business now.
Is that right -- Wall Street evil I mean this is debate that we can we can have all day I will tell you this the financial crisis occurred.
There was some fraud involved so we've been in my opinion but the reality is guess what.
Irrational exuberance is not a crime.
You know that -- was based on a lot of like -- and you know bubble mentality.
And that is usually stupidity not cries and a lot of people got swept up and it's not just the financial firms the one problem is only certain portion -- bail them out so that's the well that's another thing and why they got bailed out is because -- we -- -- banking system but we can debate that Italy about his army.
I'm gonna make a ton of money can fit with he's always welcome on the show admiral.
Avalon I like her I can't give the ticker symbol Robert KH UC that I felt they -- -- KE HUZ.
I always likes to that is okay thank you EZ AM on a hot.
Current okay -- shirt tie and the job at rock that a change in a minute.
Too many starts going I have a -- -- this things I used you know what I'm like these to these European cuts -- of course we look this -- Thank you this -- since the can't look will be right back.
