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FROM THE ARCHIVES: Attorney Claims Wall Street’s Cop, FINRA, Invested in Madoff

Posted by Larry Doyle on January 29, 2010 8:31 AM |

Time.

The policies implemented in Washington are trying to buy time in hopes that our economy recovers. Japan took the ‘buying time’ approach and twenty years later they are still waiting for real recovery.

Moving forward.

The approach being taken by those within our financial regulatory structure (SEC and FINRA) is to ‘move forward.’ Well, unless the critically unanswered questions and issues embedded within these organizations are fully exposed and addressed, America can never truly move forward with confidence in the markets and those overseeing them.

President Obama wants real financial regulatory reform. Then Mister President, compel your chair of the SEC, Mary Schapiro, to open the books and records of FINRA. Mr. President, compel Ms. Schapiro to unseal documents regarding the very formation of FINRA itself.

America knows something still smells on Wall Street. What is it? The fact that Wall Street’s self-regulatory organization, FINRA, failed in its charge to protect investors. America wants answers. Will we get them?

Given the ever increasing audience here at Sense on Cents, I welcome resubmitting this post and related commentary which ask the tough questions FINRA must address and answer.

I hope readers will share this with friends and colleagues so America can learn more about Wall Street’s great unknown self-regulator, FINRA.

LD

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Originally posted on September 15, 2009:

On the heels of President Obama’s speech on Wall Street in which he called for meaningful financial regulatory reform, I welcome submitting to him and the American public the following video clips. These clips are from Fox Business News “America’s Nightly Scoreboard” with David Asman on September 3rd.

While President Obama and Congress may believe financial regulatory reform needs to focus on the SEC, the Federal Reserve and assorted other governmental agencies, I would remind the President and his Congressional colleagues that Wall Street is regulated not only by the SEC but to a great extent by the self-regulatory organization known as FINRA (Financial Industry Regulatory Authority).

This discussion on “America’s Nightly Scoreboard” is separated into two parts.

Highlights from the videos include:

1. Richard Greenfield, an attorney representing Amerivet Securities, makes the claim that FINRA under the leadership of Mary Schapiro failed to protect investors.

2. Former SEC chair Harvey Pitt defends Shapiro and FINRA

3. Greenfield indicates that a FINRA insider claims FINRA invested in Madoff!!

4. In Part II of the video clips, your host here at Sense on Cents joins the panel and provides details as to why FINRA, via its parent the NASD, did have responsibility to oversee Madoff. I also comment on the nature of the relationship between Wall Street and Washington, FINRA’s investment and timely liquidation of its Auction-Rate Securities position, and the need for total transparency at FINRA.

4. Head of the Madoff Victims Coalition for Investor Protection, Ronnie Sue Ambrosino, weighs in that the entire regulatory structure from the SEC to FINRA to SIPC (Securities Investor Protection Corporation) have failed to protect investors.

In my humble opinion, the conclusion of this show highlights the screaming need for FINRA to open its books and records for a full and thorough independent analysis and review. In so doing, hopefully investors specifically and the American public at large can regain a degree of confidence in the badly shattered Wall Street regulatory process.

If you care about the markets and our country, I beseech you to watch this 18 minute video in its entirety.

Thoughts, comments, questions always welcome and appreciated.

LD

PART I

PART II

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I also strongly encourage readers to review my related commentary, “How Big Was Mary Schapiro’s Lie?” (December 17, 2009).

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  • Lou

    When, when, when will the issues highlighted here get out into the sunlight for all to see.

    All we hear about is that the SEC is doing this and doing that but hardly a word about FINRA.

  • BF

    I found this article useful in a paper I am writing at university. Hopefully, I get an A+ now!

    Thanks

    Bernice Franklin






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