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Obama’s Failure to Reform Wall Street: SEC No Evil Recommended

Posted by Larry Doyle on September 26, 2012 5:51 AM |

While listening to the upcoming Presidential and Vice-Presidential debates and you hear selected politicians make the case that they have reformed Wall Street, I recommend you get yourself a barf bag and think of the story I share with you today.

I introduced readers of this blog to whistleblower and former JP Morgan Chase compliance officer Peter Sivere in early 2010. For those unaware, Mr. Sivere had his identity revealed — that is, his confidence was violated — by an SEC attorney while in the process of blowing the whistle in an after hours trading case ongoing at JP Morgan.

Going on three years later Sivere and America still wait for the SEC to make proper amends in his case. Why is that fact and this case so important? 

If anybody in the land believes the SEC has made real progress in dealing with Wall Street and its own internal shortcomings, do yourself a favor and watch this brief recent conversation between Eliot Spitzer and the widely read and highly regarded author William Cohan.

Dodd-Frank reformed our financial system? Please.

The Obama administration has cleaned up Wall Street and rectified our financial regulatory system? Stop it!!

Why is it that after all these years and all this pain and all those bailout dollars a Congresswoman, in this case Nita Lowey (D-NY), needs to intervene and ask the SEC to comply with a request made by its own Inspector General for disciplinary action against its own attorney who violated Mr. Sivere’s confidence?

Investors are protected? Really? Not when situations like this go unpunished and heroic Americans suffer at the hands of financial police who show themselves to be little more than meter maids.

You think not? Ask Peter Sivere.

Navigate accordingly.

If you agree with what you read here, please share this commentary with your friends, family, and colleagues so perhaps we might start to take back our nation and reassert a meaningful sense of values and decency into our society.

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

  • Peter Scannell

    Viewpoint “Hunting the Whistle-blowers”

    A possible follow-up Viewpoint, “Whistle-blowers Hunting the Rats.”

    • LD

      Working on it…

  • Peter Scannell

    “While listening to the upcoming Presidential and Vice-Presidential debates and you hear selected politicians make the case that they have reformed Wall Street”

    “or would reform Wall Street”…

    Lets keep it real LD.

    • LD


      A very fair point but as you well know we have heard MUCH more of the former and very little from the individual who would comment on the latter.

      We have heard VP-candidate Ryan, though, reference the prevalence of crony capitalism so we will give him credit for that.

      The simple fact is we need to get this specific story and SO MUCH MORE into the public domain.

    • robertsgt40

      Watching the debates(I won’t) will be like watching WWF. Rigged

  • Diana

    Who knows when / if the sordid relationships between Wall Street and politicians will be addressed with courage and perseverance? I just wanted to say how therapeutic it is to read that SOMEONE has the fortitude and integrity to attempt making this problem more transparent, ideally, leading to measures to modify it. Thank You!

  • We are heading for a repeat of the same disaster we saw in 2008.

    The same corrupt relationship that existed between banks and DC still exists and Dodd-Frank did not deal with that.

    Peter Sivere’s case is a perfect example of the corrupt double dealings the occur between Wall St. and DC.

  • Blind Justice

    The attorney’s representing JPM. Tremendous credentials and experience but unaware that when a government attorney provided confidential non-public information about an ongoing investigation and used that information to only inflict damage to the WB’s credibility and claimed that they had no idea what they were doing was wrong, unethical, illegal and just plain dumb, now that is priceless. Next time if you see something say something instead of compromising societal values you are there to uphold – Big win for these two law firms and these two lawyers? Let their clients decide the risk/reward and scrutiny to follow.

    Jill Rosenberg – Orrick Herrington

    Dennis Glazer – Davis Polk

    Janet DiFiore’s Tax Returns Sought DSS Food Stamp Probe

  • Peter Watts

    Presumably it was the rights of Mr. Sivere which were compromised, so why does he not instigate action against the SEC? No one else will.
    I am sure that he could find a lawyer who would act on a contingent basis, failing which Larry, you could seek contributions towards his legal fees from your followers.

  • Blind Justice

    Orrick Herrigton and Davis Polk will some day learn to play by the rules albeit at a price. Improper Vouching for a governmental attorney and not disclosing the name until 2009 when forced to by the SEC OIG is not good for business.

    Orrick and Rosenberg published and stated to Michael Mabee (“Mabee”), a governmental supervisory investigator at the Occupational Safety and Health Administration (“OSHA”) and various third parties starting on May 27, 2005 the following:

    Indeed, the SEC has stated, and encouraged JPM to advise OSHA, that everything that Complainant provided to them was previously provided to them by JPM. Unbelievably, Complainant sought payment from the SEC to provide documents and information to them outside of the normal scope of their investigation.”

    “However in a very unusual step, the SEC has authorized us to state to you that all documents, Complainant provided to the SEC had previously been provided to the SEC or by JPM or it attorney’s from DPW.”

    “The SEC has also advised JPM that Complainant sought payment from the SEC for providing the SEC with documents. The SEC has rejected Complainants request. The SEC knows that Complainant was incorrect in his allegation about JPM’s conduct in responding to the SEC’s request.”


    Sivere’s motives highly questionable–SEC has confirmed that Sivere inquired about being paid for providing the SEC with documents (refers to self in SEC email as “BOUNTYMAN”)–DOL can speak directly to SEC about this.

  • Blind Justice

    How about the SEC pulls the privilege to practice before it of these firms and lawyers who violate the SEC rules? Could you imagine the economic damage Davis Polk and Orrick Herrington would incur if the SEC barred them from representing issuers for one year. Now that would fix the problem.

    Don’t you think Mr. Sivere has done enough? It’s time for the SEC take action using Rule 2(e) proceedings. The SEC rights were also compromised as well as mine and yours.

    What the hell is the SEC doing, this is a slam dunk!

  • Blind Justice
  • Obsvr-1

    continued validation of my assessment of Washington, DC and Wall St

    the Modern day equivalent of Sodom and Gomorrah

    argh …

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