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Sense on Cents Reflections: What Really Happened…?

Posted by Larry Doyle on November 28, 2010 11:15 AM |

What Really Happened…?

The financial and economic turmoil of the last three plus years has brought us stories and developments which are almost unfathomable. In fact, in my opinion there is no doubt that Wall Street and Washington would like to keep certain of these stories and developments buried forever.

Will America ever learn where some of these bones are buried? Will America ever learn of these skeletons in the closet? Will the media charged with pursuing the truth dare dig into these stories?

We are living through a time warp currently. The twists and turns on our economic landscape come at us so quickly. In the process, are we able to recall those turns–that is, certain stories and developments–which were never fully explored and exposed?
What Really Happened….?
Let’s take a moment this morning to look back on stories highlighted here at Sense on Cents from late 2008 and early 2009. Each of these stories has a number of questions which deserve to be answered. Will they? Has the government already squashed any pursuit of the truth in these high profile stories? Do the stories themselves and the people involved in them go too high within the circles of Washington and Wall Street?

I strongly believe that without exposing the naked truth in these stories the very fiber and fabric of our national character is eroded. That reality is a very high price to pay by the American public. Are these stories so sensitive and so explosive that America is better off not knowing the truth? Stop it. While selected individuals may not survive the truth and transparency involved in pursuing these stories, our nation will be just fine. On this note, I welcome reflecting on a few stories in which there remain far more questions than answers.
1. How Bernie “Madoff” With $50 Billion…!! (December 14, 2008)

>What was Bernie’s relationship with Mary Schapiro?
>Was Bernie involved with the Russian mob?
>Why did SEC attorney Genevievette Walker-Lightfoot get pulled off the Madoff investigation?
>Why is it that a full two years later there have been few truly meaningful arrests in this fraud?
>Will we ever know if the Wall Street self-regulator FINRA had its own funds invested directly or indirectly in Madoff?

2. Let’s Really Question Ms. Schapiro...(January 16, 2009)

>Will America ever learn the details of FINRA’s liquidation of its own holdings of $647 million auction-rate securities in mid-2007 when the ARS market had started to fail? Did this liquidation rise to the level of front running and/or insider trading?
>Will America ever learn the details surrounding the alleged verbal and written misrepresentations by FINRA executives, including Ms. Schapiro, in the proxy statement utilized for the merger of the NASD and NYSE regulatory arm to form FINRA.
>In which hedge funds, fund of funds, and private equity investments had FINRA invested its own money? Were there any real conflicts of interests between FINRA’s regulatory mandate and its investment portfolio?

3. Allen Stanford and Whitey Bulger: Two Peas in a Pod? (May 11, 2009)

>Was Allen Stanford truly operating as a government informant trying to infiltrate Central American and South American drug trade?
>Was the SEC railroaded by the Department of Justice when the SEC tried to pursue this case?
>Was Stanford given blanket government protection along the lines of the protection offered to noted Boston gangster Whitey Bulger by the FBI’s John J. Connolly?

4. Is Barack Obama Going Tony Soprano? (May 2, 2009)

>Did the White House truly threaten to destroy the reputation of Perella Weinberg if it chose to pursue its contractual rights in a Chrysler bankruptcy action? (The ten minute radio interview with creditor attorney Tom Lauria is embedded in my link and is a must listen!!)
>If the White House did threaten Lauria’s client Perella Weinberg, who in the White House issued the threat? Rham Emanuel? Steve Rattner? David Axelrod?
>Have other creditors in other high profile bankruptcies chosen not to pursue their contractual rights given the noise around this story?
>Have property rights in our nation forever been changed?

So many great questions. As of now, so few real answers.

Will we ever learn ‘what really happened…?’

America deserves the truth. The cost of neither pursuing the truth nor exposing it is not small.

Will future generations hold us in contempt if these questions go unanswered?

What Really Happened…?

Larry Doyle

Comments, color, questions, constructive criticism encouraged and appreciated.

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I have no affiliation or business interest with any entity referenced in this commentary. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Stanford International Investor

    Things have not gotten any better lately for the majority of the investors in the failed Stanford Bank, at least not for those who are not US citizens, who are by far the majority.

    First the Antiguan Receivers managed to get themselves fired, and have not yet been replaced, then the US Receiver dodged a motion for bankruptcy, which would not only have significantly curtailed his billing, but would have greatly expedited payments to the victims. Instead, the Judge who appointed him established an investors committee, ostensibly so the victims of the fraud could be represented in the Receivership. Regrettably the Examiner who chairs the committee allowed it to get hijacked by the lawyers acting on the class-actions, and a couple of American investors, fronting the Stanford Victims Coalition (SVC) claiming to represent all the victims, but whose sole stated intent (now they are appointed) is to gain SIPC coverage for a minority of mainly US citizens.

    Once the remaining investors started to raise questions, and began to realise that any SIPC pay-out could well be at their expense, they were ceremonially dumped, and branded anarchists or radicals. The leader of the SVC- Angela Shaw – now states that she is only representing the Americans and is going out of her way to thwart any attempts by the International Investors to gain any information and is also trying to close down the Stanford Victims forum which is used by the International Investors to share news and comments.

    A double whammy for the International investors; First, the failure of the SEC in America to act, knowing for thirteen years Stanford was likely a Ponzi Scheme; the reason they gave for not acting was because they simply did not think there were any US investors; Then, the International Investors were abandoned by the very people (SVC) who asked them to help fight for justice, just as soon as they could see a way to their own personal recovery. The SVC know that if they are successful in getting SIPC cover, all the receivership assets may be claimed to subsidise their pay-out and this would leave the majority of International Investors with nothing!!.

    Only in the United States of America could this be allowed to happen……….robbed once by Stanford and then robbed again by the very people (the SVC) who misled so many into believing they were working to help them.

  • Tea Party

    In each of the first three stories you reference, who is the one individual who might hold a lot of the answers to questions you pose?

    MARY SCHAPIRO……

  • Whitey

    Speaking of Whitey, have you ever heard the voice of the man who remains on the FBI’s Ten Most Wanted List?

    http://www.thebrothersbulger.com/audio/Whitey.mp3

  • Rock

    Should we hope that Darrell Issa (R-CA) will address some of the travesties you highlight here when he becomes chair of the House Oversight Committee?

    We can only hope.

  • Darrell Issa is an unfortunate political hack. He proved this in the days of Gray Davis, and he continues along the same self-promoting course today. Issa is a politician with more than a touch of P.T. Barnum in his character; he is not a statesman. What we really need, I believe, is a Wikileaks disclosure aimed at all the above questions posed by LD.

  • Alexandra Roth

    Hi,
    I have read all your articles regarding Madoff,SEC and SIPC. I know you are very familiar with the issues and are on the right side. I was wondering if you could somehow promot a petition that has a lot to do with the above entities. I started the petition a few days ago and could sure use your help. Thanks in advance. Here is the linl:
    http://www.change.org/petitions/support-david-vs-goliath-by-supporting-rep-garretts-r-nj-legislation-to-protect-investors






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