SEC Arrives "On Site" At Third Avenue, And Is "Closely" Monitoring The Situation

Tyler Durden's picture

When Third Avenue's junk bond mutual fund suddenly liquidated and gated investors late last week, many wondered how can the multi-billion asset manager do this without getting a pre-approval - or frankly any comment - from the SEC first as it should, and parallel to that: how can the SEC not have any idea whatsoever about just how woeful the liquidity conditions and redemptions at the funds it supervises are.

We are about to find out.

According to Bloomberg, several days after the biggest credit event in years took place, the SEC has released a statement by its spokeswoman Gina Talamona, who said that the "commission staff is on site, and we continue to closely evaluate the fund’s efforts to ensure it provides an orderly process that best protects investors."

And now you can again sleep safe again America, knowing that the SEC is "on top of things" and everything is contained.

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Bill of Rights's picture

Cue up the Looney toons closing theme song...

nuubee's picture

ebdee...ebedee...ebedeee...... That's all folks!

cossack55's picture

Did they take all of their porn-filled filing cabinets with them?

ThroxxOfVron's picture

I expect this to end Lehman style.

As soon as bankruptcy is declared the criminals will shred the evidence of their crimes and then load everything worth anything into boxes and walk right out the front door with them while the cops keep the bystanders at bay...

knukles's picture

Hows about checking out Goldman Sachs Asset Managements appearance of a conflict of interest around junk bonds?

Seal's picture

so THAT'S why the SEC is there

cougar_w's picture

They'll do as much under the cover of night as they can. Just a like a droning in Iraq, no photos. Then the bailouts of big investors, and CONgressional hearings over a weekend.

Wham bam thank-you-ma'am.

Repeat about 500 times in 2016.

Citxmech's picture

In the alternative, the Benny Hill theme song is also appropriate:  https://www.youtube.com/watch?v=MK6TXMsvgQg

 

nope-1004's picture

SEC is on site to destroy evidence.  The corrupt American banking and financial sector only knows how to lie and coverup, not "investigate" for any good.

And they're not called investors, they're aptly called muppets.

SillySalesmanQuestion's picture

The "Cleaners" have been dispatched to sanitize and disinfect the scene...
"No crimes were committed on site before, during or after the flamboozling, at Third Avenue...that is all."

cougar_w's picture

On site with a checkbook you mean. The mega-bailouts resume in 3 ... 2 ... 

insanelysane's picture

The SEC called on Friday and said, "We'll be there by noon Monday, make sure there is nothing for us to find."

THE COIN's picture

Yosimity Sam is on the job.

junction's picture

Third Avenue Management's logo is "The Power of Original Thinking."  When CEO David Barse got the boot, as of yesterday, the WSJ reported he was barred from re-entering their offices.  Not very original.  I wonder if Third Avenue had a guard by his side as he emptied his desk.  Did he have to return the executive washroom key?  Probably not, he would have his own private facility built next to his offices. Next for the SEC is whether to give Barse their super-deluxe Corzine treatment, where they sit on their hands for months doing nothing, just wondering where to go to lunch.

cougar_w's picture

"whether to give Barse their super-deluxe Corzine treatment"

No bankers will be harmed in the next round of meltdowns.

stocktivity's picture

"The SEC monitoring the situation"

Ha Ha - since when in the past 9 years has the SEC monitored anything except the ruin of the middle class.

o r c k's picture

I WANT THAT JOB !! No knowledge of your job description and massive pay and benefits. Just wander in to an emergency every 5 or 10 years and ask someone what should be done.  Finally. Something too good to be true that is TRUE !! And GOOD !!

Hubbs's picture

Closely monitoring... to make sure  evidence is disposed of.

ThroxxOfVron's picture

Somebody from the SEC finally showed up...

 

 

..to have a cup of holiday cheer and receive their fat envelope full of crisp benjamins most likely...

Mr. Schmilkies's picture

He looks like Mr. Yellen's son.

delivered's picture

Just in time, as usual, a day late and dollar short. It's beyond belief that these so called experts and professionals can't see these types of events coming. Each day this thing is becoming more and more surreal. Only thing missing now is to produce an episode on the old series the Twilight Zone!

The Ram's picture

No need to worry, the government is here.  The SEC was just so exemplary in 2008!

DetectiveStern's picture

Looks like everythings gonna be ok lads.

aliki's picture

awesome to hear they were out in-front of this one.

awesomer to know we don't have anyone regulating the regulators (ie. NOBODY to protect the investors in 3rd avenue or any other investors for that matter from the underlying policy that caused the high-yield credit crash).

Junerberno's picture

The only thing Mary White is "on top of" is a Jewish banker's cock.

DirkDiggler11's picture

Time to perp walk some fucking patsy that worked in the mailroom and paint that bastard as the new "Bernie Madoff"

Dr. Engali's picture

Was Corzine with them to check over things?

NotApplicable's picture

"They have NO idea!" -- Cramer

With the amounts of leverage involved as well as the lack of liquidity in the market, I'd have to guess that each and every financial entity is merely a few milliseconds away from tasting death from Greenspan's famous "cross-cascading default scenario."

Luckily they'll break the market as soon as it starts to get out of hand, cuz as we've seen, the Invisible Hand suddenly appears at the most inoportune moments.

Seasmoke's picture

Is the Fat Lady finally on stage. 

SillySalesmanQuestion's picture

She shows up Wednesday afternoon.

medium giraffe's picture
SEC Arrives "On Site" At Pornhub.com, And Is "Closely" Monitoring The Situation
yogibear's picture

You can bet their closely monitoring it.

wmbz's picture

Which means they (the sec) get to hang out with their assholes buddies, surf some porn sites and give the all clear it's all good signal.

Then head over to the nearest upscale bar, down a few shots on the taxpayers credit card!

Just another day of doing nothing for the SEC.

firstdivision's picture

Keep in mind that the looming energy debt defaults hasn't even started yet. 

silverer's picture

Don't worry.  The SEC will be on top of that one, too.  Everyone else will be six feet under.

Nex's picture

Someone panicked in Washington because of HY. Maybe be much better that they come during subprime shale boom. Oh, i forget, it is national security issue.

yogibear's picture

The SEC (Sex Evaluation Committee) and their porn site reviews.

Another do-nothing group of leeches. They'll find some delivery guy and prosecute that poor soul.

drivenZ's picture

I mean, there's a reason funds have gating or redemptions suspension provisions in their offering docs. 

VWAndy's picture

Throxx nailed it on the first post.

Dkizzle49855's picture

I didn't realize Moe wore glasses.

WhiteWolf's picture

Hi There, WE ARE FROM THE GOVERNMENT, IS JOHN CORZINE IN?

WhiteWolf's picture

we are here to help, running with the large

WhiteWolf's picture

box of other peoples cashb

herkomilchen's picture

What theater.  Like any politician, govt agency heads look to the popular headlines to see what's getting press and then rush to position themselves in front of it.  A real watchdog (which government can never be) would have detected excessive risk long before it rose to the level of gating.  This is the SEC arriving on the scene to pose for pictures in front of the barn door after the horse has bolted.

Baronneke's picture

"the SEC is "on top of things" and everything is contained."

 

They are probably on top of..... eachother.   

gregga777's picture

The SEC is just another Federal government agency that legitimizes criminals and their crimes. In this case, they are in the pockets of Wall Street's criminals.

herkomilchen's picture

Yep.  Taxation alone can't extract enough wealth from the productive.  Legitimization of cronyist schemes as fee-for-service, writ large in the case of the Fed, is how the government funds its grossly expensive schemes like wars against drugs or terrorism that expand and secure its power.