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Hedge Fund Collusion to Pound Euro?

Posted by Larry Doyle on March 3rd, 2010 12:35 PM |

Meeting industry friends and colleagues for dinner, drinks, and market talk is standard fare. In fact, I would say it is good business as it is important to develop relationships within the industry.

That said, the development of these professional relationships and the interaction amongst the professionals should never come at the expense of professional ethics and integrity. I did witness more than a handful of times individuals from different shops on both the buy-side and the sell-side of the industry push the envelope very close and sometimes over that ethical line.

Not always, but very often, the ethical shortcomings involved hedge funds. Why? The revenue model for hedge funds (typically 2% asset management fee and 20% of profits derived) serves as a huge incentive for traders at hedge funds to gain an edge and act upon it as much as possible. The fact that the hedge fund traders and managers have a direct stake and an accompanying vested interest in the profits fuels this crowd like nothing else. Read the rest »


Consumer Financial Protection or Wall Street Beats Main Street?

Posted by Larry Doyle on March 3rd, 2010 9:49 AM |

News that a newly proposed Consumer Financial Protection Agency will be housed within the Federal Reserve is another shot across the bow in terms of Wall Street owning Washington and beating Main Street.

Am I surprised by these results? Not at all. The power of the Wall Street lobby is enormous and ultimately the crowd in Washington needs the money from Wall Street in order to pretend they represent the interests of Main Street. All the press conferences and politicking on the topic of consumer financial protection truly amount to nothing more than pure bluster. The bottom line of Wall Street banks feeds the bottom line of many politicians in Washington on both sides of the aisle. Read the rest »


Ron Paul Freedom IRA

Posted by Larry Doyle on March 3rd, 2010 8:22 AM |

Might Uncle Sam look to confiscate your retirement accounts for purposes of funding our massive federal deficit and the enormous municipal pension gap? Initial steps are being taken in Washington that may very well lead to that reality. What can we do to protect our current retirement accounts and the sanctity of future retirement savings?

Support the introduction of a Ron Paul Freedom IRA. Where can we learn more about this? Let’s review analysis put forth by Ronald Holland, my guest on No Quarter Radio’s Sense on Cents with Larry Doyle on February 21st.

Ronald recently released the following report which provides a review of our current situation, the preparatory steps being taken in Washington to takeover your retirement accounts, and what we can do to protect ourselves. I recommend you read, review, and save this commentary as we will certainly want to refer to this in the months ahead.

Introducing the Ron Paul Freedom IRA
by Ron Holland Read the rest »


Media Appearance on CNBC at 2:45pm [UPDATED with video]

Posted by Larry Doyle on March 2nd, 2010 1:41 PM |

If you’ve got some time this afternoon, I will be appearing on CNBC’s Street Signs at 2:45pm. Hopefully, I’ll be able to grab a video clip of the segment to post later today or tomorrow.  ~ LD

UPDATED at 4:30pm: Here’s the video clip . . .


FINRA Immunity Without Transparency Is “A License to Steal”

Posted by Larry Doyle on March 2nd, 2010 10:40 AM |

Judge Jed Rakoff’s ruling to dismiss the complaint by Standard Investment Chartered v FINRA based on the regulator having absolute immunity generated a consistent response from readers and colleagues. What is the theme of that response?

A comment by Bill, a loyal Sense on Cents reader, seems to sum it up best:

Interesting that FINRA has the benefit of a quasi governmental entity, i. e. immunity, but not the customary burden of a governmental entity–transparency. Otherwise known as a license to steal. Read the rest »


Goldman Sachs: The Reputation You Deserve

Posted by Larry Doyle on March 2nd, 2010 7:08 AM |

When you sleep with dogs, you wake up with fleas.

Of all the lines I heard bandied about during my time on sales and trading desks on Wall Street, the line I reference above is one of my favorites. Why? That line goes straight to reputation.

As much as anybody may want to whine, bitch, or moan about being treated unfairly, ultimately the court of public opinion will convey upon an individual or an entity the reputation he or they deserve.

As a parent, I have often had the discussion with my children that they had better be exceptionally careful as to what they do and with whom they hang because you carry your family name with you everywhere you go and you only get one reputation. For this very reason, I strongly believe the greatest risk in life is reputation risk. Read the rest »


Judge Rakoff Dismisses Suit Against Mary Schapiro and FINRA Under Absolute Immunity

Posted by Larry Doyle on March 1st, 2010 5:49 PM |

America should be reviled when those charged with upholding the law overseeing our markets are not held to that standard themselves.

Today is a very dark day for those in our country who cherish the virtues of truth, transparency, and integrity.

Why am I despondent? This afternoon, Judge Jed Rakoff issued a ruling dismissing the lawsuit brought on behalf of Standard Investment Chartered against Mary Schapiro and other FINRA executives. What is the basis for Judge Rakoff’s dismissal? He allowed the defense the cover of absolute immunity in the merger of the NASD with NYSE Regulation to form FINRA. Read the rest »


Madoff Ruling: More Reason Not to Trust Wall Street or Washington

Posted by Larry Doyle on March 1st, 2010 1:03 PM |

On the heels of my commentary this morning addressing why Harry Markopolos feels America’s citizens should not trust the government, we receive more fuel for the fire.

The timing of this release is truly uncanny:

MADOFF JUDGE’S RULING REDUCES PROTECTIONS AGAINST PONZI SCHEMES FOR ALL SECURITIES INVESTORS

Judge rules SIPC does not have to insure every account up to $500,000, shifts burden of Madoff losses to American taxpayer. Read the rest »


Harry Markopolos: “Don’t Trust Your Government”

Posted by Larry Doyle on March 1st, 2010 10:38 AM |

Harry Markopolos

In an interview on the Today show this morning (video clip after the fold), Harry Markopolos dropped a few bombshells. Harry’s statement that he had purchased a gun and mentally prepared himself to kill Bernie Madoff in self-defense if need be will likely grab the most attention. It shouldn’t.

Markopolos’ biggest bombshell this morning is his warning to America, “don’t trust your government.” No surprise that Today host Matt Lauer did not probe deeper. I am not confident that other outlets will delve deeper into Harry’s statement, either. I wonder why Harry himself is reticent to specifically point out the individuals and the instances which lead him to make that statement.

Recall that a year ago Harry defined the SEC as merely incompetent while simultaneously defining FINRA (Financial Industry Regulatory Authority) as ‘in bed with the industry’ that is Wall Street. Well, it does not take an advanced degree to connect Harry’s grenade toss into FINRA’s backyard a year ago with his volley this morning. Read the rest »


Larry Fink Warns CalPERS; Sense on Cents Warns America

Posted by Larry Doyle on March 1st, 2010 9:19 AM |

When the king of Wall street speaks, America would be wise to listen.

Despite what one may think or feel about Wall Street, prudence dictates we are fully aware of developments on the major thoroughfare of our economic landscape. The king, that is Larry Fink the CEO of the asset manager Blackrock, last year sent a note of investment caution to CalPERS (California Public Employees Retirement System) which all of America should heed. 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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