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After Goldman, Who’s Next in the SEC’s Scope?

Posted by Larry Doyle on July 22nd, 2010 1:15 PM |

One would think the SEC’s settlement with Goldman Sachs was just the break we needed in the logjam to finally get some real truth and transparency into Wall Street business practices. Recall that the Goldman CDO Abacus represented a mere .2 of the total CDO market from 2006-2008.

There must be many more fish in that tank just waiting to get caught by the SEC. American taxpayers deserve nothing less than a full and total accounting and adjudication of the travesty and transgressions embedded in a number of structured transactions on Wall Street. Will we receive that accounting? Is the SEC sending a strong message to those on Wall Street that ‘there’s a new sheriff in town?’  Or is the SEC placating the American public, applying a sizable slap on the wrist to Goldman, and giving Wall Street a wink and a nod indicating that it is ‘business as usual?’ Let’s navigate. Read the rest »


“You’re Playing with Sharks”

Posted by Larry Doyle on July 22nd, 2010 6:20 AM |

Is it safe to go in the water? In other words, is it safe to play in the markets under the current construct? Do small retail investors truly stand a chance against the ‘big boys’ on Wall Street running high powered algorithmic trading programs and assorted other high frequency trading mechanisms? Are fundamental traders being thrown around amidst the ‘high waves’ and ‘strong surf’ pounding the shore?

No doubt, the scene on Wall Street has changed dramatically over the years. The onslaught of high frequency trading complete with a wide array of ‘bait and tackle’ such as flash orders, dark pools, naked access, co-location, and much more make it extremely challenging — if not downright daunting — for those who believe they can navigate these waters with simple ‘rod and reel.’ Read the rest »


Mary Schapiro Owes America Answers

Posted by Larry Doyle on July 21st, 2010 1:00 PM |

Pursuing the truth does not come from asking softball questions and allowing those being questioned to duck and weave. Regrettably, America has received far too little of the truth throughout our economic crisis. Why? Very simply, the overwhelming stench emanating from the Wall Street-Washington incestuous relationship very frequently suffocates any chance of the truth seeping out. Where can we turn?

Let’s visit our friends at POGO, that is the Project on Government Oversight. This not-for-profit government watchdog has no problems asking the hard questions. In light of my commentary last evening on Mary Schapiro, I was pleased that a friend of Sense on Cents brought to my attention a series of questions directed at SEC Chair Mary Schapiro.

Thank you, POGO! America deserves answers to the following Questions for SEC Chair Mary Schapiro as She Testifies Before the House:

SEC Chair Mary Schapiro is currently testifying before the House Financial Services Committee. We applaud the Committee for providing some much-needed oversight of the “present reforms and future challenges” facing the SEC.

Here are just a few questions we’d like to see the Committee ask Chairman Schapiro: Read the rest »


If My Aunt Had Balls, She’d Be Mary Schapiro

Posted by Larry Doyle on July 20th, 2010 7:04 PM |

“If my aunt had balls, she’d be my uncle!!”

I love that line. I first heard it on the trading desk at Bear Stearns in the early ’90s. For the last twenty years, I have used the line often to counter those who would bemoan an outcome with the standard, “If only . . .” My response typically generates a healthy chuckle and we then move on.

At this point, I feel comfortable amending the line from above to “If my aunt had balls, she’d be Mary Schapiro.” Too harsh, you say? I think not. How so? Read the rest »


What’s ‘UP’ with the Euro?

Posted by Larry Doyle on July 20th, 2010 9:41 AM |

The Euro has had a significant bounce over the last 6 weeks. After bottoming out slightly below 1.20/U.S. dollar in early June, the Euro has bounced back close to 1.30 versus the greenback. Let’s navigate the circuitous path of this most important currency and assess where it may be headed from here. I am most pleased to highlight commentary on this critically sensitive topic, written specifically for Sense on Cents by Forextraders.com:

The Current State of the Euro:  Can It Head Higher Versus The Dollar?

The months of June and July have seen a rapid and extreme appreciation of the Euro against the U.S. Dollar.   In order to understand our current state of the Euro and where we may be headed, it is imperative that one have a basic understanding of the Sovereign Debt Crisis in Europe. Read the rest »


How Long Will ‘Walking Pneumonia’ Economy Last?

Posted by Larry Doyle on July 20th, 2010 6:28 AM |

I have told many people that I equate our current economic situation to a serious case of ‘walking pneumonia.’ If you have suffered from that dreadful malady, as I have, you can appreciate my sentiments. While we are going to live, and will move on from our current condition, the question everybody wants to know is how long will this sluggish, sickening episode last?

I wish I was so prescient as to be able to pinpoint the month and year when our economy may return to real vitality. I am neither that smart nor that egotistical. I do strongly believe, though, that we are looking at a number of years of continued underperformance. Read the rest »


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? Read the rest »


Jamie Dimon: “Too Early to Say…”

Posted by Larry Doyle on July 19th, 2010 10:08 AM |

Bank CEOs tend to choose their words very carefully. On one hand, these senior executives do not want to appear overly optimistic and send a message to the marketplace that may be viewed as overly pumping their business and, in turn, their stock valuation. Similarly, the leaders of our financial institutions are never inclined to be excessively pessimistic thereby scaring clients, investors, and consumers. What is the result? Typically, we hear bank executives try a slightly upbeat but evasive enough script in which we truly need to look through the message to get the real meaning.

How often did we hear from bank executives throughout 2008 and 2009 that our economy had seen the worst and was turning the corner?  I referenced this style and these comments from Wall Street titans in my commentary from November 12, 2008, The Wall Street Model Is Broken…and Won’t Soon be Fixed! I wrote: Read the rest »


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. Read the rest »


Sense on Cents Endorses Elizabeth Warren for Consumer Financial Protection Agency

Posted by Larry Doyle on July 17th, 2010 11:20 AM |

Elizabeth Warren

Truth, transparency, and integrity!

If our nation is to have any chance to recover from the throes of the worst economic crisis since the 1930s, it had better start elevating and embracing these aforementioned virtues. Time and time again, when we review business practices and political decisions at the center of our crisis, we have seen a glaring lack of these prized virtues. Why and how were these principles compromised? The pursuit of short term profit. Regrettably, this pursuit came at the expense — if not total violation — of these principles. The ultimate long term costs are now being borne by the nation as a whole.

Sense on Cents abhors those who would compromise these core values. Similarly, Sense on Cents embraces those who cherish these values. To that end, I strongly endorse Elizabeth Warren to head the Consumer Financial Protection Agency. Read the rest »


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Larry Doyle

Larry Doyle A Wall Street veteran's views and instincts on the markets, economy, and all things financial.







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