Posted on: September 9, 2024, 04:31h.
Last updated on: September 9, 2024, 04:31h.
Big donors to the Democratic party in Silicon Valley and on Wall Street want Vice President Kamala Harris to fire Federal Trade Commission (FTC) FTC Chairwoman Lina Khan should Harris win this year’s presidential election.
Well-heeled donors to the Harris campaign have recently increased pressure on Harris to sack Kahn and Securities and Exchange Commission (SEC) Chairman Gary Gensler should she win the White House. Though the gaming industry has been quiet on the matter, there are ties, particularly to Kahn. Earlier this year, the FTC announced an investigation into MGM Resorts International’s (NYSE: MGM) response to the September 2023 cyberattack that temporarily crippled the casino company’s domestic operations.
That touched off a spate of legal maneuvering between the commission and the gaming company. In June, the Bellagio operator sued the FTC, demanding Kahn recuse herself from the investigation because she and several staffers were guests of an MGM Las Vegas property during the time of the cyber intrusion. Kahn hasn’t signaled that she’s considering recusal and the legal wranglings between the FTC and MGM are ongoing.
She was appointed by President Biden in 2021 and her term expires on Sept. 25, meaning it’s likely to be renewed so that the top spot at the FTC isn’t vacant until after the election. Should Kahn commit to a second term, that means unless she is fired by Harris — assuming the vice president wins the election — the FTC chair would occupy that position for a significant portion of Harris’s first term as president.
MGM Director Diller Among Those Wanting Kahn Gone
IAC/InterActiveCorp (NASDAQ:IAC) Chairman Barry Diller is among the big Democrat donors reportedly leaning on Harris and her campaign to remove Kahn. In a July interview with CNBC, Diller called Kahn “a dope” and said she’s against “almost anything” that helps business efficiently grow.
Though he walked back the snarky comment, it’s widely believed he still wants Harris, should she become president, to remove Kahn. It’s not clear if the FTC’s suit against MGM had any bearing on Diller’s comments, but he and IAC CEO Joey Levin are members of the gaming company’s board of directors.
Diller’s conglomerate is the largest MGM investor, controlling roughly 20% of the gaming company’s shares as of May. IAC initiated its MGM stake in August 2020 and added to it three months later.
Cuban no Fan of Gensler
SEC Chairman Gensler has been rumored to be a potential candidate for Treasury Secretary should Harris win the presidency, but that appears increasingly unlikely as some her wealthiest supporters increase pressure on her to fire him, too.
Those backers include Mark Cuban. Last year, he sold majority control of the NBA’s Dallas Mavericks to Dr. Miriam Adelson and Patrick Dumont. Adelson is the largest Las Vegas Sands (NYSE:LVS) shareholder and Dumont is president and chief operating officer (COO) of the casino giant.
Cuban has long said he wants to partner with Sands on bringing a casino hotel to the Dallas-Fort Worth metroplex.