Dallas Mavericks owner Mark Cuban spoke with FOX Business Network (FBN) about his thought on the Securities and Exchange Commission (SEC) and Mamma.com. Cuban said “I think the SEC overplays the impact it has on individual investors and their decision making process” and that “certain individuals within the SEC that look at it as the SEC standing for Swiftly Enhanced Careers.” When asked about his insider trading case with internet search company Mamma.com Cuban said, “I would avoid that company like the plaque…that was my mistake.”
Excerpts from the interview are below.
Mark Cuban On whether insider trading is one of the biggest problems out there for investors:
“I have no idea. You know, I don’t have the insights, I don’t have the exposure to all the data to know if insider trading is rampant or not, but I think the SEC overplays the impact it has on individual investors and their decision making process. I think the SEC will trump it up any insider trading charge they bring, they’ll show you a long list of numbers of cases they brought, but then when you try to correlate that to consumer confidence in the market or investor confidence in the market there’s no correlation at all, so I think the SEC may need to reevaluate the things they try to introduce as to try and increase consumer confidence or investor confidence.”
Mark Cuban On the SEC:
“I think there are certain individuals within the SEC that are lifers. I think there are certain individuals within the SEC that look at it as the SEC standing for Swiftly Enhanced Careers and that happens particularly at the top where you get litigators and the head of enforcement that aren’t looking to really have an impact on consumer confidence or investor confidence they’re looking for their next job. So I try not to generalize about the government or an entire agency, but there is no question that there’s people at the top if the SEC that are looking out for themselves first.”
On whether Cuban would do the trade over again with Mamma.com:
“I would avoid that company like the plaque, is what I would do. That was my mistake”