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Let’s Introduce the Financial Crisis Inquiry Commission to FINRA

Posted by Larry Doyle on January 14, 2010 11:10 AM |

This morning the Financial Crisis Inquiry Commission is questioning FDIC Head Sheila Bair, SEC Chair Mary Schapiro, Attorney General Eric Holder, and Assistant Attorney General Lanny Breuer.  We continue to hear from Bair, Schapiro, Holder, and Breuer about what changes are and will be occurring in the financial regulatory future more than we hear about what occurred in the past. A few questions about the regulatory past have not truly drilled down and they’ve been easily parried by Schapiro, primarily, but also by Bair and Holder.

The most egregious shortcoming in this morning’s questioning, though, is the fact that I have yet to hear anybody on the Commission question Ms. Schapiro about her role and responsibilities at FINRA, the Wall Street self-regulatory organization.

Schapiro continually references what is currently going on at the SEC. Current activities and future developments of the SEC are not the charge of this Commission.

America wants answers about what occurred in the past to bring our markets, our economy, and our country to its knees. The fact that the commissioners have not specifically raised the FINRA name begs the question as to whether they are even aware that Wall Street is a self-regulated industry.

Let’s introduce the Financial Crisis Inquiry Commission to the institution that is charged to protect investors and regulate Wall Street. Here’s a link to my total Sense on Cents body of work on FINRA. I just submitted this link, encompassing 131 commentaries, to the Commission. Plenty of the material is repetitive, so with a few staff people working on it they should be able to make real headway within a day or two.

Regular readers of Sense on Cents are aware that my writing is no mere internet hyperbole. Newer readers may be interested to learn more about the credible allegations of a FINRA investment in Bernie Madoff. How about the fact that FINRA liquidated $647 million in auction-rate securities while possessing material non-public information about the market’s failure. There is so much more.

America demands and deserves answers.


  • Fed Up

    Keep doggin’ ’em….!!!

  • ED

    HAVE YOU SEEN THIS….following CNBC statement:
    from : One of the comments at the bottom of the article: The Treasury produces a daily FMS statement hidden away on the ESF site. Comparing the figures over the start of this month suggests the holding of debt by the public has gone down while intragovernmental holdings have gone up.

    December 31st Intragovernmental Holdings 4,500,341 December 31st Debt Held by the Public 1/$ 7,811,009

    January 11th Intragovernmental Holdings 4,504,295 January 11th Debt Held by the Public 1/$ 7,781,189

    January 12th Intragovernmental Holdings 4,509,816 January 12th Debt Held by the Public 1/$ 7,781,353

    This suggests to me a US government agency has being buying US debt (QE by the back door ?). It will be interesting to see whether those intragovernmental holdings increase for the day ending the January the 13th or whether the debt held by the public racks up.

    • Larry Doyle


      Very interesting material. Thanks for sharing these links. I have no doubt that the Fed and treasury are looking to stuff government paper into every imaginable crevice and chasm they can find. Please keep us informed.

  • Kathy

    Larry, I applaud you for this. This information on Finra demands government attention.

  • John Wallace

    Just received a letter in today’s mail from Carolyn Mendelson of the Pennsylvania Securities Division basically stating the same garbage as the 4 prior letter I’ve received from them EXCEPT for one short, one sentence paragraph slid in…… “We would appreciate it at this time if you would advise us as to whether you currently hold ARS through E*Trade and/or if you continue to have a complaint against E*Trade.”

    At first this extra verbage lifted my spirits and gave me a feeling that maybe, just maybe, they are nearing a settlement with E*Trade or one of their possible buy-out suitors. But after thinking about it a bit more, I think their just trying to determine if they can close their investigation into E*Trade and move on. Now that most of the companies which were going to settle without a serious fight have settled, there are no more fees and penalties for the PA Securities Division to scavenge. I say scavenge since PA hasn’t done shit to get anyone to settle. They simply sit in the tree branches and watch while more effective regulators actually force settlements. Then they swoop down to assess fees on the carcasses. Freaking buzzards!!

    I’m going to call Mendelson this week. In writing she won’t do anything but recite disclaimers like a robot attorney. But sometimes, she’ll say a bit more on the phone when she knows there’s no record of what she’s said.

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