RSS Feed
Twitter
Facebook
Email
HomeWho Are the FINRA Board of Governors?
Posted by Larry Doyle on August 22nd, 2010 10:23 AM |
While the general financial media would seem not to understand nor care that Wall Street to a large extent is a self-regulated industry, many within the industry and around the country very much care. The Financial Industry Regulatory Authority (FINRA) is the financial industry’s self-regulatory organization.
At FINRA’s 2010 Annual Meeting held a week ago, FINRA’s member firms overwhelmingly voted for seven aggressive non-binding proxy proposals. These proposals were by and large targeted at bringing greater transparency and disclosure to FINRA’s operations. Will FINRA’s board of governors acquiesce and fully address these proposals? (more…)
Is FINRA’s Board Tone Deaf?
Posted by Larry Doyle on August 20th, 2010 3:15 PM |
When might a voting process with overwhelming returns be negated by the wishes and desires of the powers that be? Am I speaking of those who may occupy bully pulpits in third world nations? No, that guess would not be close.
Am I referring to political leaders who are protected by military and business minions? Nope, still quite cold.
How about a board that is more affiliated with an organization’s executives than with its members? We are getting warmer.
What about financial regulators and a board who have the reputation of being much more closely aligned with major players within the financial industry than their rank and file members and American investors at large? Bingo!!
Let’s get more specific. A week ago, FINRA’s member firms voted overwhelmingly in favor of seven non-binding proxy proposals put forth by Amerivet Securities. In light of the vote and the overwhelming results, one would have thought that FINRA’s board would have absolutely no choice but to fully address these proposals. To do otherwise, one would think that the FINRA board might run the risk of further alienating its membership while sending a message to the American public at large that transparency and disclosures are virtues this financial regulator speaks of but does not truly practice. (more…)
FINRA Gets New ‘Sheriffs’; Amerivet Proxy Proposals Approved!! Strongly Recommended
Posted by Larry Doyle on August 14th, 2010 12:14 PM |
Monday 8-16-10
I am continuing to keep this commentary as my lead post for three reasons:
1. I believe the potential impact of the developments in this story are enormous on the financial regulatory system in our nation.
2. This story received very little if any coverage outside of some industry newsletters.
3. Weekend traffic at blogs is considerably less than during the week.
I truly hope readers can fully appreciate the magnitude of the developments captured within this story. Sense on Cents’ pursuit of truth, transparency, and integrity took a giant step forward with the results of last week’s FINRA Annual Meeting. Have I piqued your interest? Read on and spread the word!! LD
Saturday morning in America!!
On this glorious morning on the east coast, I believe all Americans should be heartened by the results of the annual meeting held by Wall Street’s self-regulator, FINRA, this past Thursday. I remain convinced that FINRA as an organization remains an unknown entity to the overwhelming majority of the American populace. The results from this annual meeting may start to change that unfortunate reality. How so? Let’s navigate.
The Securities Industry Professional Association (The SIPA), long a thorn in FINRA’s side, actually trumped the FINRA release in highlighting the results of elections to the FINRA board of governors. Good for John Busacca and his colleagues at the SIPA in sending a strong message to FINRA that there are ‘new sheriffs in town.’ Yesterday the SIPA released,
SIPA Candidates Sweep FINRA Board Elections! (more…)
FINRA Transparent? Why Would They Want To Do That?
Posted by Larry Doyle on July 19th, 2010 4:36 PM |
A month ago I highlighted a list of proposals presented to FINRA which would generate a significant level of transparency into Wall Street’s self-regulator. Given everything we have gone through over the last few years, who in America would not now want greater transparency from Wall Street’s self-regulator? I wrote FINRA Owes America Answers on These Proposals:
FINRA can talk about transparency and integrity all it wants. We all know talk is cheap. FINRA’s board and executives need to show America how they truly define and embrace transparency and integrity. How so? (more…)
Madoff Investors Deserve Better from Julie Jason
Posted by Larry Doyle on July 18th, 2010 7:55 AM |
America is full of financial writers who have 20-20 hindsight. While I am fully respectful of writers everywhere who legitimately try to help investors, I have limited regard for those writers who are less than thorough in their pursuit of truth and transparency in the process. I witness just such a syndicated writer, Julie Jason, this morning. I welcome sharing a letter I just wrote to her in response to her weekly commentary:
Julie,
I truly appreciate your desire to help people but I also believe you provide a false impression as to the integrity and effectiveness of the financial regulator FINRA. (more…)
Ron Rhoades: “Six Reasons Why FINRA Should Be Dismantled”
Posted by Larry Doyle on July 15th, 2010 11:21 AM |
Regular readers of Sense on Cents are well aware of the multiple issues I have highlighted regarding Wall Street’s self-regulatory organization, FINRA. Allegations of front-running the auction-rate securities market, allegations of investing its own funds in Madoff, misrepresentations (i.e. lying in a proxy statement) in the document used for the very formation of the FINRA organization, and ultimately an incestuous relationship with the industry, I have not been bashful in highlighting what I deem to be critical failings, if not potentially much worse, within this organization.
A good friend of Sense on Cents, Ronnie Sue Ambrosino (who just so happens to be a lead spokesperson for Madoff investors), shared a very interesting commentary regarding FINRA. The writer, Ron Rhoades, offered his thoughts on FINRA yesterday at RIABiz, a website which promotes itself as providing “voice, news, and vision for the advisory (registered investment advisors) community.”
Ron holds nothing back in addressing the question of the fiduciary standard within investment management. (more…)
FINRA Owes America Answers on These Proposals
Posted by Larry Doyle on June 22nd, 2010 1:28 PM |
FINRA can talk about transparency and integrity all it wants. We all know talk is cheap. FINRA’s board and executives need to show America how they truly define and embrace transparency and integrity. How so?
FINRA is scheduled to hold its first Annual Meeting in almost three years on August 2nd. In anticipation of that meeting, FINRA member firm Amerivet Securities has submitted seven proposals to be included in the FINRA proxy materials. The FINRA board and executives owe their member firms, and ultimately America, the opportunity to address and then receive complete answers on each of these proposals. (more…)
FINRA’s ‘2009 Year in Review’: INCOMPLETE
Posted by Larry Doyle on June 22nd, 2010 10:32 AM |
What good is a 2009 Annual Report released in September 2010?
Picture a student informing his teacher that he has not been able to complete his 75-page year end review, but that he will surely get it done over the summer and “I’ll have it for you when school starts back up in September.” Additionally, the student tries to ingratiate his teacher by submitting a 6-page summary year in review. If this were not so pathetic it may actually be comical, but my friends this is what we are subjected to by the Wall Street self-regulator FINRA. How so?
FINRA Chairman and CEO Rick Ketchum just released a magnanimous 6-page 2009 Year in Review while informing America that the full 2009 FINRA Annual Report will not be released until September.
American citizens and investors are experiencing one of the most dramatic, traumatic, and anxiety-ridden financial and economic period in our nation’s history, and all we get is a 6-page summary.
The FINRA 2009 Year in Review will not take long to critique, but suffice it to say the grade on this review will certainly be “INCOMPLETE.” (more…)
Karen Fischer Petitions for FINRA Board Seat
Posted by Larry Doyle on May 18th, 2010 5:45 AM |
A democratic process requires fair, open, and robust interaction between and among elected individuals. That interaction will only occur if the individuals themselves are representative of a wide constituency. To that end, I am happy to post the following petition from Karen Z. Fischer, who is running for a seat on the FINRA Board of Governors. I am not endorsing Karen’s candidacy per se, but I am very much endorsing a process which will promote real transparency and integrity. To that end, I welcome sharing Ms. Fischer’s letter: (more…)
Goldman Action Highlights FINRA Facade
Posted by Larry Doyle on May 6th, 2010 12:57 PM |
FINRA is supposed to be the Wall Street cop, right? Is the cop a real cop or more of a facade? Well, when the Wall Street banks which FINRA is charged to oversee do not observe the most basic of FINRA rules and regulations, in my opinion, FINRA is exposed as nothing more than a facade.
Evidence of this was on display just yesterday as Bloomberg highlighted in reporting, Goldman Sachs Said to Be Late to Report SEC Probe to FINRA:
Goldman Sachs Group Inc. was late in notifying the Financial Industry Regulatory Authority that trader Fabrice Tourre might be sued for fraud by the U.S. Securities and Exchange Commission, according to people familiar with the matter. (more…)
