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Archive for the ‘SEC’ Category

Official Study: The SEC and Quid Pro Quo

Posted by Larry Doyle on August 15th, 2014 9:44 AM |

“The findings of this study suggest that the SEC is influenced by considerations other than the merits of the case and raise questions regarding the effectiveness with which the agency plays its deterrence and compensation roles.”

Maria M. Correia
London Business School

The phrase “quid pro quo” is universally understood as something that is given or taken in return for something else. The actions involved are not necessarily always illegal or unethical but very often the connotation of the phrase especially when used in a political context expressly implies a form of corruption.

“On the federal level, the Hobbs Act makes it a felony for a public official to extort property under color of office. Trading campaign contributions for promises of official actions or inactions are also prohibited under the act.”

I think most people in our nation today would accept the premise that Washington politicians actively engage in practices that would fall under the heading of quid pro quo. How do they often play this game? Let’s navigate as Ms. Correia hits the Washington establishment and the SEC hard: (more…)

What Is Really Going On at The SEC?

Posted by Larry Doyle on August 11th, 2014 9:38 AM |

If we thought that our nation’s top financial cops had embraced the mantel of truly protecting the public interest, a recent story put forth by CNBC gives us serious reason to pause in that assessment.

This story addresses a leak inside the commission and generates far more questions than answers as to what is really going on inside the offices of the SEC.

Let’s navigate, review, and critique how the SEC Probes Its Own Leak But Can’t Find Culprit:

The inspector general of the Securities and Exchange Commission conducted an intensive, months-long dragnet in 2013 and 2014 involving phone, email and security searches to determine who inside the agency allegedly leaked information to the media about a closed commission meeting discussing the massive JPMorgan “London Whale” settlement, CNBC has learned.


SEC Whistleblower Program: Risks vs Rewards

Posted by Larry Doyle on July 22nd, 2014 7:50 AM |

If you became aware of unethical and likely illegal practices at your company, would you consider ‘blowing the whistle?’ This question is a daunting proposition filled with very real risks that should be measured against potential rewards.

Given the risks and unpleasant real life experiences of many whistleblowers on Wall Street, I firmly believe and recommended in my book that Congress should establish a privately staffed Office of Whistleblower Protection. Some may think that is overreach. I don’t. Others in much greater proximity to the ‘whistles’ would seem to share my view that blowing the whistle is a high risk proposition deserving of increased protection.

Let’s navigate.  (more…)

Russian Hacking of Nasdaq: Further Color

Posted by Larry Doyle on July 21st, 2014 10:13 AM |

Global risks on many fronts remain exceptionally elevated.

From the Ukraine to a number of hot spots in the Middle East, to the South China Sea, to our southern border, global risk is rampant. Each of these situations entails real human suffering and generates strong reactions and appropriate empathy.

Yet in the midst of each of these stories, there was another story that broke last week that deserves far greater attention than it has received in terms of our national security. I refer specifically to a story released by Bloomberg Businessweek entitled How Russian Hackers Stole The Nasdaq:

In October 2010, a Federal Bureau of Investigation system monitoring U.S. Internet traffic picked up an alert. (more…)

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…)

SEC Failures in Systems and Controls: Matter of National Security

Posted by Larry Doyle on April 18th, 2014 7:20 AM |

As I sit here collecting my thoughts in the early morning hours of April 18, 2014, I think back to the chilling days of February 26, 1993 and September 11, 2001.

Most reading this will certainly never forget the tragedy that is forever known as 9-11. However, that fateful day was foreshadowed 8 years prior when another World Trade Center bombing took place. Both attacks were clear-cut indications that terrorist forces were at work to assault American interests by massively disrupting activity on Wall Street. We live with this reality each and every day knowing that these same forces remain at work.

After the attack of 1993, Wall Street firms began implementing significant measures for disaster recovery programs and information systems controls. Against that 20 plus year backdrop, I have to admit I am bewildered if not totally dismayed this morning. Why so? Stick with me here.  (more…)

James Kidney Stones the SEC: “A Tollbooth on The Bankster Turnpike”

Posted by Larry Doyle on April 9th, 2014 9:07 AM |

James Kidney recently retired from the SEC.  He skewered the commission’s culture and management on the way out the door.

For those who care to understand how Wall Street has gotten away with incredibly egregious offenses over the years, Kidney’s brief remarks are well worth the few minutes to review. The highlights include:

1. The revolving door is a very serious problem. I have had bosses, and bosses of my bosses, whose names we all know, who made little secret that they were here to punch their ticket. They mouthed serious regard for the mission of the Commission, but their actions were tentative and fearful in many instances. (more…)

Retiring SEC Lawyer Indicts Schapiro, Khuzami et al as Being ‘In Bed with Wall Street’

Posted by Larry Doyle on April 8th, 2014 1:51 PM |

In what might only qualify as turning one’s weapon on those formerly running a defense unit, a retiring attorney in the SEC’s Enforcement Division just left the commission and went out with “guns a-blazing.”

I welcome immediately inducting this attorney, James Kidney, into the Sense on Cents Hall of Fame. Let’s navigate as Bloomberg reports:

A trial attorney from the Securities and Exchange Commission said his bosses were too “tentative and fearful” to bring many Wall Street leaders to heel after the 2008 credit crisis, echoing the regulator’s outside critics.  (more…)

Michael Lewis on HFT: “It’s All A Scam”; Here’s the Cause and Effect

Posted by Larry Doyle on March 30th, 2014 8:42 PM |

Major props to renowned writer Michael Lewis for using his enormous platform to direct light on the scam that has come to define our equity markets under the construct of high frequency trading.

As Lewis states, the scam is not only restricted to HFT activity but rather the market as a whole has become a scam. Powerful words and worth the minute to listen to the video clip below.

But let’s go deeper than that. (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…)

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