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Archive for the ‘regulatory capture’ Category

What’s Going On at The ‘Deutsche Bank Haus’? Video

Posted by Larry Doyle on July 24th, 2014 10:42 AM |

I am hard pressed to little more than chuckle at the recently released report by the New York Federal Reserve concerning the regulatory failures at Deutsche Bank. Why so amused?

The Financial Times informs us the regulators at the NY Fed are so ‘steamed’ due to “Deutsche’s perceived failure to act on similar problems raised by regulators since 2002.”  Yes, 2002. That is not a misprint. What does that tell us?

Not unlike a bunch of frat boys having their way with an administration that is little more than comical and totally ineffective in maintaining order on campus, is it any real surprise that the crowd at the “Deutsche Haus” has little meaningful oversight of its own operations when its chief regulators at the New York Fed are either asleep and/or complicit in facilitating the party and mayhem? (more…)

The DOJ’s Double Standard

Posted by Larry Doyle on July 8th, 2014 9:00 AM |

Let’s see here.

The public at large rails on those in Washington for going easy on our ‘too big to fail’ banks for a host of clearly criminal practices.

Uncle Sam — that is the SEC, other regulators, and ultimately the Department of Justice — try to talk tough and hit an array of institutions with sizable fines but little really changes.

The public continues to see through the facade and lets Uncle Sam know it.

The ‘old man’ decides he needs to really get tough and begins to mandate that institutions admit guilt as part of the settlement process. The first guilty party is Credit Suisse, then next up is BNP Paribas.

Now we awake this morning to see that Germany’s second largest lender, Commerzbank, is likely next in the crosshairs. Do you detect a pattern here? Bloomberg provides further color in reporting: (more…)

Letter to Editorial Board of The New York Times: “Real Cause Is Regulatory Capture/Corruption”

Posted by Larry Doyle on June 30th, 2014 9:56 AM |

I sent a copy of this letter to the members of the Editorial Board of The New York Times this morning. 

To the Editorial Board of The New York Times

Re: Sunday Editorial, The Dark Pool Iceberg: Lawsuit Against Barclays Shows Need for More Scrutiny

Dear Mr. Rosenthal, et al,

I was pleased to read your editorial in this past Sunday’s New York Times regarding the recent lawsuit brought by New York Attorney General Eric Schneiderman against Barclays for engaging in a ‘pernicious fraud’ within its equity division and specifically in the operation of its dark pool.

The allegations made by AG Schneiderman are supported by information provided by whistleblowers who had previously worked at Barclays. The outrage by investors and the public should be justifiably long and loud. The erosion of trust and confidence in Wall Street broadly speaking will continue to undermine our economy. We all suffer in the process. (more…)

CFTC’s Scott O’ Malia ‘Blows The Whistle’

Posted by Larry Doyle on May 8th, 2014 1:19 PM |

What does it say about a regulatory oversight system when individuals from inside start to ‘blow the whistle?’

I think it speaks volumes that all is not well, and somebody better start to really pay attention and take some meaningful action.

A month or so ago we heard from retiring SEC attorney James Kidney voicing real concerns in describing the commission as little more than a “tollbooth on the banksters’ turnpike.” Now we hear CFTC (Commodities Futures Trading Commission) commissioner Scott O’ Malia also blowing the whistle. Let’s navigate as Pensions and Investments highlights O’ Malia’s siren call:  (more…)

Bart Chilton: “Regulators Were Asleep at The Wheel”

Posted by Larry Doyle on May 5th, 2014 9:18 AM |

It is not often when a regulator effectively turns on his own. I did a double take this morning while watching an interview on Bloomberg Surveillance when Bart Chilton, former commissioner at the CFTC, did just that.

This 4-minute clip also addresses the following: the perception of liquidity in the marketplace; Bloomberg’s Adam Johnson misconstrues some activity of high frequency traders during the Flash Crash as beneficial; the captains of finance operating in an irresponsible fashion.

The highlight of this clip, however, comes at the 2-minute mark when Chilton exposes his regulatory brethren while also alluding to the fact that some regulators were trying to do the right thing. One can only assume the powers that be must have silenced those who were not willing to bow down.


Chris Whalen: True Perpetrators in Michael Lewis’ Tale of Wall Street Greed and Corruption Are Congress, SEC, FINRA, Major Exchanges

Posted by Larry Doyle on April 23rd, 2014 8:23 AM |

Today I am pleased to elevate author and investment banker Chris Whalen into the highest echelon of the Sense on Cents Hall of Fame.

Whalen distinguishes himself as he properly frames the ongoing debate surrounding the scandalous practices within high frequency trading in a recent commentary that ran at Zero Hedge entitled, In “Flash Boys” Michael Lewis Misses the Point — Deliberately.

Let’s navigate as Whalen further exposes how our public officials and regulators charged with protecting the public interest are really “in bed with Wall Street.” (more…)

Taking Stock on Bloomberg: Expose the Corruption

Posted by Larry Doyle on March 26th, 2014 6:54 AM |

I thank Bill Cohan, Carol Massar, and those at Bloomberg for having me on the show Taking Stock yesterday afternoon to address my take on the recent guilty verdict handed down in the Madoff employees case, corruption within the financial-political-regulatory system, and recent developments within the executive offices at JP Morgan.

Those who have read my book In Bed with Wall Street: The Conspiracy Crippling Our Global Economy will understand exactly what I mean when I say in this 5-minute interview that we need to “expose the corruption.”

For those who have not yet read the book — I hope you will — but would like to know more specifically what I am referring to when I make the statement that we need to “expose the corruption,” I am speaking of the following all of which is voluminously detailed in the book: (more…)

DANGER: Unknown Size, Location of Financial WMD

Posted by Larry Doyle on February 20th, 2014 6:31 AM |

If there are hackers in far off countries who can figure out how to penetrate the computer systems of our nation’s banks and retailers, how is it that a full 5 years after the greatest crisis since the Depression that our financial regulators are not able to properly monitor the financial weapons of mass destruction, aka derivatives contracts, running throughout our system?

I will tell you how. Because the ‘too big to fail’ banks have zero interest in making that happen. If anybody needed any further reason to break up our ‘too big to fail’  banking oligopoly, Bloomberg provides it in this recent editorial:

The recent turmoil in emerging markets raises an urgent question: If things get worse, if markets plunge or a government defaults, do regulators know which banks, hedge funds or other institutions are most at risk?  (more…)

Senator Warren Indicts Regulators ‘In Bed with Wall Street’

Posted by Larry Doyle on February 7th, 2014 10:06 AM |

“The question I’m asking is whether or not there’s adequate deterrent to prevent the largest financial institutions in this country from breaking the law,” Sen. Elizabeth Warren (D-Mass.) said at a Senate Banking Committee hearing today. “Right now, if financial institutions can just settle their claims out of court, and get a raise for settling them, then where’s the deterrent?”

Senator Warren pressed regulators about their current enforcement efforts, noting that the “the public has little confidence in regulators’ willingness to seek the kind of penalties that will actually deter future financial crimes.”

With those two statements, Senator Warren (D-MA) indicts the current scandalous practices if not outright corruption that lies at the intersection of Wall Street and Washington and provides the public’s concluding sentiment as detailed in In Bed with Wall Street. The clip runs a mere 6-minutes.

What to do about this? How about we start with the following:

1. Congress should launch a privately run Office of Whistleblower Protection.
2. Wall Street’s private police detail, that is the financial self-regulatory organization FINRA, should no longer have absolute immunity and should be subject to the Freedom of Information Act.
3. Wall Street arbitration should be optional and not mandatory so as to end the kangaroo court.
4. End the self-regulatory oversight of Wall Street.

Is anybody in favor of the ongoing cronyism and corruption that defines our current system?

Larry Doyle

Please order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy.

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog to view the embedded video clip and to comment on this piece of ‘sense on cents.’

Please subscribe to all my work via e-mail

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.

Gary Aguirre at Notre Dame Details SEC Corruption

Posted by Larry Doyle on January 16th, 2014 8:29 AM |

Instead of wasting three hours watching The Wolf of Wall Street, I have a much better video for you to view — and in less than half the time. Much better.

If  you really want to know what our financial regulators were doing while the destructive behaviors on Wall Street brought down our markets and our nation’s economy, find 80 minutes to watch remarks delivered recently by former SEC attorney and noted whistleblower Gary Aguirre at the University of Notre Dame. Aguirre’s remarks put a whole new spin on the moniker, Fightin’ Irish. Major props to those at ND for giving Aguirre the forum to speak and spread the truth. Other colleges and universities should be so courageous.

Gary Aguirre is a true American hero. If you cannot watch this video today, come back to it over the weekend. After you watch the clip, I guarantee you will want to share it with your friends and colleagues so they can understand how cronyism and corruption within the financial regulatory system has eroded the sense of trust and confidence that currently permeates our nation. You really need to watch this.

Navigate accordingly.

Larry Doyle

Please order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy.

For those reading this via a syndicated outlet or receiving it via e-mail or another delivery, please visit the blog to view this video and comment on this piece of ‘sense on cents.’

Please subscribe to all my work via e-mail

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.

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