Auction-Rate Securities: The Fraud Continues
Posted by Larry Doyle on May 3, 2010 10:57 AM |
To: Wall Street, Washington, and State Capitols
From: Sense on Cents
Re: Auction-Rate Securities Fraud and Financial Regulatory Reform
To all those enmeshed on both sides of the political-financial incest and currently debating and lobbying on the merits of proposed financial regulatory reform, you are proving yourselves to be nothing more than massive frauds yourselves by not fully addressing and exposing the single greatest financial fraud perpetrated on American investors, that is the world of auction-rate securities.
To President Obama, members of Congress, financial regulators, and Wall Street executives, your unwillingness and inability to openly and honestly address the perpetuation of the fraud surrounding ARS ($150 billion ARS remain outstanding) paints you as nothing more than aiding and abetting the fraud itself. Who amongst you is even willing to fully address this topic?
Your silence speaks volumes as to your allegiances and your willingness to allow the interests of American investors to be trampled. You think I am off base? Let’s ponder the pain and anguish expressed by an ARS investor who was fraudulently sold this garbage by Oppenheimer:
Is there no end to the amount of abuse auction rate securities victims still have to put up with? Now we have Nuveen CEF common share holders suing Nuveen for redeeming the preferred share holder’s ARS. It seems that every individual, company, regulator or attorney general that has something to gain by keeping our auction rate security money frozen is working real hard to do just that.
Nuveen has been the only company that has actively been setting this injustice right by consistently redeeming their preferred share holders. Now that I have experienced first hand the way things work in the financial/regulatory world someone should find out who these common share holders are. My guess is they represent other CEF like Blackrock, Eaton Vance, Van Kampen, Neuberger and Pimco who have done nothing for their preferred share holders.
Nuveen has been making these firms look very bad. All of the firms mentioned above could do the right thing and redeem their ARS if they wanted to. Nuveen has made it apparent they have no interest at all in doing the right thing. I’m sure they are very motivated to stop Nuveen’s redemptions.
Nuveen was a bright light for some of us. That light seems to be getting extinguished. Otherwise all remains the same. Over 2 years and we are farther away now then we ever were of getting our money back.
Oppenheimer & Co was brilliant. They showed us how useless Cuomo and his Martin Law can be when they want to be. It’s amazing what getting off the hook for a billion dollars of misrepresented securities they pushed on us has done for their business. Their CEO and other top exec that dumped their ARS before the market collapsed have full use of their cash and Cuomo found nothing wrong with their behavior.
Cuomo has proven to Wall Street that he can be very friendly to them if he wants to be. All at our expense. I’m sure this will pay a big dividend during his run for governor. If my attorney general continues to favor companies like Oppenheimer and support their immoral behavior and ignore the plight of those that suffer because of such behavior I will oppose him every way I can in his bid to be governor.
Who needs a governor that fails to protect it’s residents?
Who amongst the aforementioned political and financial executives are willing to stand up for this American citizen and the thousands more who are in the same bind because our regulatory system and, in turn, our government failed them?
Financial regulatory reform? Not when $150 billion dollars from a prior fraud, that being auction-rate securities, remain in the hands of the banks and dealers who fraudulently marketed and distributed these securities.
. . . and Wall Street execs and Washington pols wonder why America detests them so much? The ARS fraud provides 150 billion reasons!!