Posts Tagged ‘Bernie Madoff’
Posted by Larry Doyle on February 23rd, 2010 2:04 PM |
Are the days of Wall Street’s self-regulatory organization known as FINRA numbered?
In the opinion of the very credible Project on Government Oversight, they should be. Why? Significant failures, massive conflicts of interest, and more. POGO’s comprehensive and scathing letter to four separate House and Senate committees touches upon every failing within FINRA, with the exception of the integrity of the proxy statement used in the formation of the organization itself. Strong allegations in a current lawsuit against FINRA make the case that Mary Schapiro lied verbally during roadshows and in the proxy statement. (For details on this lawsuit read here.)
Despite not addressing the issues embedded in that lawsuit, POGO touches all the other bases and covers all the other issues surrounding this organization. (more…)
Tags: Amerivet Securities vs FINRA, Anna Driver, ARPS, ARS, Bernie Madoff, Bernie Madoff Mark Madoff Peter Madoff, Bernie Madoff's relationship with FINRA, compensation at FINRA, Danielle Brian's letter about FINRA, Darrell Preston FINRA, Davis Polk Wardwell, did FINRA protect investors, financial regulation, financial regulatory reform, FINRA, FINRA and NASD Annual reports, FINRA conflicts of interest, FINRA failings, FINRA oversight of Stanford, FINRA's board, FINRA's failure in auction rate securities, FINRA's formation, FINRA's future, FINRA's oversight of Madoff, FINRA's oversight of Wall Street, FINRA's track record, Frederick Fram, incest on Wall Street, John Coffee, Lena Stinson, Madoff relationship with FINRA and NASD, Mary Schapiro, Mary Schapiro compensation and severance, merger creating FINRA, Michael Smallberg's letter to Congress and Senate on FINRA, NASD, NASDAQ, National Adjudicatory Council, POGO, POGO FINRA, POGO investigates FINRA, POGO letter on FINRA, POGO letter to House and Senate committees, POGO letter to House Committee on Oversight and Government Reform, POGO letter to House Financial Services Committee, POGO letter to Senate Banking, POGO letter to Senate Finance, project on Government Oversight, Richard Ketchum, Robert Errico, self-regulation on Wall Street, Shana Madoff, Susan Merrill, Tom McGinty kara Scannell Randall Smith FINRA, Wall Street employees working at FINRA, Wall Street's SRO, Wall Street-Washington incest, watchdog group investigates Wall Street regulator, what does Finra do?
Posted in FINRA, General, POGO | 10 Comments »
Posted by Larry Doyle on February 20th, 2010 11:58 AM |
The target on SEC Chair Mary Schapiro’s back is getting larger and gaining more focus. How so?
The lead editorial in this weekend’s edition of The Wall Street Journal goes after Schapiro hard in writing, Mary Schapiro’s Say on Pay. While the editorial leads with the ongoing battle Schapiro and the SEC are having with Bank of America’s lack of disclosure during its merger with Merrill Lynch, the Journal quickly turns the tables on Ms. Schapiro and addresses the lack of disclosure at Ms. Schapiro’s former haunt, FINRA.
Come to papa.
Regular readers of Sense on Cents are well aware of how consistently and steadily I have been banging this FINRA drum. It is long past due that America is truly introduced to Wall Street’s self-regulatory organization, the Financial Industry Regulatory Authority (FINRA). (more…)
Tags: ARS, Auction Rate Securities, Bernie Madoff, Bloomberg News, disclosure, Dow Jones, FINRA, Madoff, Mary Schapiro, Mary Schapiro's Say on Pay, merger of Bank of America with Merrill Lynch, NASD, regulation, regulatory system, Richard Greenfield, The New York Times, Wall Street, Wall Street Journal, Wall Street Journal editorial lack of disclosure on FINRA compensation, Wall Street Journal editorial page 2 20 2010, Wall Street Journal February 20 2010 Mary Schapiro's Say on Pay, Wall Street Journal February 20 2010 Schapiro FINRA Madoff, Wall Street Journal FINRA, Wall Street Journal Mary Schapiro compensation practices at FINRA, Wall Street Journal Mary Schapiro's Say on Pay editorial February 20 2010, Wall Street regulation, WSJ editorial February 20 2010 FINRA lack of disclosure, WSJ editorial FINRA not-for-profit compensation Schapiro, WSJ editorial on MAry Schapiro February 20 2010
Posted in FINRA, General, Mary Schapiro, Wall Street, Wall Street Journal | 2 Comments »
Posted by Larry Doyle on February 15th, 2010 7:53 AM |
In an attempt to draw further attention to the questions of serious ethical issues in and around Wall Street’s self-regulatory organization FINRA, I am highlighting a comment left at Sense on Cents the other day. While protecting the identity of this individual for obvious reasons, I can vouch for the fact that this person works for a FINRA member firm and was present during the road shows promoting the merger of the NASD and NYSE Regulation to form FINRA.
I commend this individual for speaking out. I second the call to fully investigate the FINRA executives involved in the very formation of this organization and then the manner in which it was run.
FINRA and its board need to be compelled to fully open the books and records of this organization and its predecessors. Only then might America learn the answers to the following questions: (more…)
Tags: ARS, Auction rate preferred securities, Auction Rate Securities, Bernie Madoff, FINRA, FINRA Board of Directors, Finra investment portfolio, FINRA roadshow, formation of FINRA, Mary Schapiro
Posted in FINRA, General | No Comments »
Posted by Larry Doyle on February 14th, 2010 7:54 AM |
Sense on Cents is bumping this story back up from its original posting for a number of reasons, including:
1. the recent comment left by Disenchanted;
2. the fact that this evening NQR’s Sense on Cents with Larry Doyle Welcomes Michael Smallberg will address this topic; and
3. most importantly, this topic deserves as much attention as possible!!
Thanks. LD
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When in doubt, form a committee and have more meetings. This rope-a-dope style of leadership is all too prevalent in our nation. Why is it that the Wall Street-Washington incest can not be exposed for what it really is? When will somebody in our country display integrity and leadership while acknowledging the existence and stench of this incest? (more…)
Tags: Amerivet Securities vs FINRA, Bernie Madoff, Elton Johnson, finra auction rate securities, FINRA board, FINRA Board to review Mary Schapiro compensation, FINRA executive compensation, FINRA management, FINRA oversight, Jonathan Cuneo, Mary Schapiro, Richard Greenfield, T. Grant Callery
Posted in FINRA, General | No Comments »
Posted by Larry Doyle on February 4th, 2010 11:40 AM |
Are the wagons circling around Mary Schapiro and her former FINRA colleagues?
Regular readers of Sense on Cents are familiar with the issues and concerns I have raised repeatedly with Wall Street’s self-regulator, FINRA. I continue to believe the issues embedded within this self-regulatory organization lie near the heart of what I deem the Wall Street-Washington nexus.
Perhaps America will learn more about these issues soon. Why? Next week, FINRA’s Board of Directors will address alleged wrongdoings by Ms. Schapiro et al. What are the issues? (more…)
Tags: Allen Stanford, Amerivet Securities, ARS, Attorney Richard Greenfield, Bear Stearns, Bernie Madoff, David Kotz, Elton Johnson, FINRA, FINRA auction-rate securities scandal, FINRA Board of Directors, FINRA books and records, Harry Markopolos, investigation of Mary Schapiro, investment losses at FINRA, Lehman Bros, losses at FINRA, Mary Schapiro, Mary Schapiro's compensation, Mary Schapiro's tenure at FINRA, Merrill LYnch, need for transparency, Richard Greenfield, subprime, transparency, wagons circling Mary Schapiro, Wall Street Washington show, Wall Street-Washington incest
Posted in General | 8 Comments »
Posted by Larry Doyle on February 2nd, 2010 11:12 AM |
Great Britain just took the definition of America’s strongest ally to a whole new level. How so?
News this morning that the U.K.’s Serious Fraud Office (SFO) will not pursue legal action against the local operations of Bernard Madoff Investment Securities is just another kick in the balls to investors everywhere and the innocent Madoff investors especially.
The New York Times highlights this breaking news story in writing, Britain Will Not Pursue Legal Action Against Madoff:
Britain’s Serious Fraud Office said Tuesday that it would not pursue legal action against the local operations of Bernard L. Madoff, the U.S. financier now in jail in the United States.
In a statement, the S.F.O. said its investigation had found “ insufficient evidence to provide a realistic prospect of conviction” against either the company or its directors.
What did investigators find? (more…)
Tags: Bernie Madoff, Britain Will Not Pursue Legal Action Against Madoff in New york Times February 2 2010, Madoff investigation in U.K., Madoff Securities International, madoff Securities International Ltd in Mayfair, madoff's Ponzi scheme, Richard Greenfield allegation of FINRA investment in Madoff, Richard greenfield representing Amerivet Securities, Serious Fraud Office in Great Britain, SFO insufficient evidence to pursue Madoff investigation, sweeping Madoff under the rug, U.K. Serious Fraud Office, U.K. Serious Fraud Office investigation of Bernie Madoff, was Madoff an inside job, was Madoff's London operation a front o, What is the Serious Fraud Office, what role did Madoff's U.K. operation play
Posted in Bernie Madoff, General, Madoff | 2 Comments »
Posted by Larry Doyle on January 4th, 2010 9:47 AM |
For those who missed last evening’s No Quarter Radio’s Sense on Cents with Larry Doyle Hall of Fame and Shame Induction, I am compelled to provide a recap and listing of all those honored or dishonored — depending on one’s perspective. What was the measuring stick to make these assessments? Very simply, the pursuit and promotion of truth, transparency and integrity as we navigate the economic landscape.
Some names you will immediately recognize, others you may not. Additional information about these individuals can be found via the search window (located above the right sidebar) at Sense on Cents. The names appear in no specific order of priority or importance. With no further adieu . . .
Sense on Cents 2009 Hall of Shame Inductees
1. Bernie Madoff
2. Nicholas Cosmo: ran financial scam at Agape World
3. Tim Geithner: tax cheat amongst other things
4. Larry Summers: arrogant, condescending, and sleep deprived
5. Auction-Rate Securities dealers and managers, especially Oppenheimer Holdings, E-Trade, Schwab, Pimco, Van-Kampen, Blackrock
6. The Wall Street Journal
7. George Soros
8. Chris Dodd (D-CT): reasons too numerous to mention
9. The Board of FINRA
10. Franklin Raines and Leland Brendsel: former CEOs of Fannie and Freddie
11. Wall Street management, especially Lloyd Blankfein of Goldman Sachs
12. Frank Dipascali: a special place in hell for Madoff’s CFO
13. Rahm Emanuel
14. Jimmy Cayne: CEO of Bear Stearns
15. Dick Fuld: CEO of Lehman Bros.
16. Congress collectively
17. Barney Frank (D-MA): reasons too numerous to mention, but start with “I want to roll the dice…”
18. Bank Stress Tests: a total sham
19. Allen Stanford
20. Steven Rattner: car czar
21. Bruce Malkenhorst: receiving a 500k pension from Vernon, CA
22. Barack Obama: just another politician (more…)
Tags: Acorn, Allen Stanford, Andrew Madoff, Angelo Haligiannis Ponzi scheme, Arianna Huffington, auction rate securites dealers, Bank Stress Tests, Barack Obama, Barney Frank, Ben Nelson, Bernie Madoff, Board of FINRA, Bob Rodriguez of FPA, Bruce Malkenhorst, Canadian Prime Minister Stephen Harper, Carmen Reinhart, cash for clunkers, Charles Bowsher, Charlie Doyle, Chris Cox, Chris Dodd, Chuck Schumer, Clifford S. Asness, Cohmad Securities, Colonel Elton Johnson Jr., Congress, Daniel Hannan, Dennis Kucinich, Dick Fuld, Edward Liddy, Elizabeth Warren, Erin Arvedlund, financial media, financial regulatory reform, Frank DiPascali, Franklin Raines and Leland Brendsel, George Rieger of GIM, George Soros, Goldman Sachs, Harvey Pitt, Helen Davis Chaitman, Helmut Kiener, Howard Kastel, incest between Wall Street and Washington, Jeff Gundlach, Jeffrey Picower, Jimmy Cayne, Joe Saluzzi, Joe the Plumber, John Edwards Mark Sanford Rod Blagoevich, John Mauldin, john wooden, Jonathan Cuneo, Jonathan Weil of Bloomberg, Judge Jed Rakoff, Judge Lawrence McKenna, Kenneth Rogoff, Larry Johnson, Larry Summers, Laurie Goodman of Amherst Securities, Lew Rockwell, Lloyd Blankfein CEO of Goldman Sachs, Madoff family, Mark Madoff, Marta Mossburg, Martin Feldstein, Mary Landrieu, Mary Schapiro, media in America, Mike Duggan of Domus, Nicholas Cosmo of Agape World, Oppenheimer Holdings E-Trade Schwab Pimco Van-Kampen Blackrock, Paul Keating, Paul Volcker, Pete Peterson Genevievette Walker-Lightfoot, Peter King, Peter Madoff, Peter Weinberg, Phil Trupp, PPIP, Raj Rajaratnam of Galleon Group, Rham Emanuel, Richard Greenfield, Richard Ketchum, Robert Benmosche, Robert Jaffe, Robert reich, Robert Rubin, Ronnie Sue Ambrosino, Ruth Madoff, Sean D'Arcy, SEC, Sense on Cents 2009 Hall of Fame Hall of, Sense on Cents 2009 Hall of Shame, Shana Madoff, Shelia Bair, Sin-Ming Shaw, SIPC, Sonny and Marcia Cohn, Steven Rattner, Susan Antilla of Bloomberg, Taylor Bean Whitaker, Tea parties, Thaddeus McCotter, The Wall Street Journal, Themis Trading, Thomas Hoenig, Tiger Woods, Tim Geithner tax cheat, Tom Lauria, truth transparency and integrity, Wall street management, Walter Noel, William K. Black
Posted in General, Sense on Cents | 30 Comments »
Posted by Larry Doyle on December 15th, 2009 11:46 AM |
Will Congress hit the Wall Street banks with a one-time assessment in order to compensate Madoff investors? Why might that happen? Very simply because SIPC (Securities Investor Protection Corporation) was woefully underfunded given the fact that SIPC member-firms, including all the large Wall Street banks, paid a token $150 (yes, that is not a misprint, a token $150) annual premium from 1996 until April 2009 for SIPC coverage.
Each and every investor in America should be livid at the insurance scam perpetrated by SIPC and its member firms, but especially by the largest firms taking the greatest risks!
I will address this insurance scam in a post later today, but for now I want to highlight an engagement between Rep. Paul Kanjorski (D-PA) and Stephen Harbeck, the head of SIPC that occurred last week during a hearing on securities investor protection reform.
This interaction should have received massive coverage by the mainstream media. Regrettably, but not surprisingly, it did not. Why? If it received the appropriate coverage, it would shine a laser beam on the incestuous nature of the relationship between Wall Street firms and its regulators (SEC and FINRA) and insurer (SIPC).
From the transcript of the hearing last week: (more…)
Tags: Bernie Madoff, financial regulatory system, Madoff Ponzi scam, Paul Kanjorski chair of House Finance subcommittee on capital markets, SIPC, SIPC insurance, SIPC insurance premium, Stephen Harbeck of SIPC, Wall Street insurance protection, Wall Street regulatory system
Posted in Bernie Madoff, General, Wall Street | 3 Comments »
Posted by Larry Doyle on December 15th, 2009 6:53 AM |
Helen Davis Chaitman, esteemed and distinguished attorney with Phillips Nizer in New York City, was my guest on No Quarter Radio’s Sense on Cents with Larry Doyle on November 5th. We addressed the gross inequity embedded in the business practices of SIPC (Securities Investor Protection Corporation). How gross? What inequity? The fact that SIPC member firms (i.e. every broker dealer and bank on Wall Street) paid a “whopping” $150 annual assessment from 1996-2009 in order to promote and accord protection for their investors.
$150 per year for Goldman Sachs? JP Morgan? Bank of America? Yes, for 13 years SIPC member firms paid annual assessments of only $150. Of all the travesties on Wall Street, this SIPC joke may be the biggest of them all.
Ms. Chaitman, who has worked diligently on behalf of the Madoff Coalition for Investor Protection on a pro bono basis, provided riveting details and dialogue during my interview. This past Wednesday, Ms. Chaitman did the same for the House Finance Sub-Committee on Capital markets chaired by Rep. Paul Kanjorski (D-PA).
I strongly exhort people to realize that the Madoff scam is not merely a fraud strictly impacting Madoff investors. The failure of our financial regulators, the financial regulatory system, and SIPC impacts us all. The regulators, the regulatory system, and SIPC have failed all investors. Why? How?
The lack of confidence in our markets on behalf of investors remains pervasive. Helen Davis Chaitman provides a tremendous public service in highlighting the aformentioned failures. I encourage readers here at Sense on Cents to watch this 9-minute video clip of Ms. Chaitman’s testimony. She speaks for all of us.
LD
Tags: Bernie Madoff, Helen Davis Chaitman testimony at House Finance hearing, House Finance subcommittee on capital markets, Madoff scam, Mike Conley of SEC, SIPC, Stephen Harbeck of SIPC, Wall Street-Washington incest
Posted in Bernie Madoff, General | 1 Comment »
Posted by Larry Doyle on October 19th, 2009 10:09 AM |
Is Mary Schapiro a liar? Are other FINRA executives also liars?
Fully appreciating that merely asking these questions is aggressive by its very nature, I do not ask them in a derisive fashion. The fact is, the answer to those questions in the eyes of Richard Greenfield is an unequivocal, “Yes!”
Who is Richard Greenfield? I had the distinct pleasure of chatting with Richard last evening on my weekly Sunday evening radio program. Richard Greenfield of Greenfield & Goodman is an attorney with over 40 years of experience in banking, securities, and consumer litigation. Amongst other legal venues, Attorney Greenfield has been admitted to practice before the Supreme Court of the United States.
Our conversation last evening was riveting. If you have an interest in the markets, our economy, developments on Wall Street and in Washington, I strongly encourage you to listen to the interview in its entirety. I will share with you some of the highlights which Richard provided. (The timing I provide for these highlights can be used in the audio player provided here.)
> 16:40: FINRA’s mindset has never been on major league enforcement, but rather relatively picayune broker-dealer violations and even then the violations are more technical than they are real. Greenfield said, “the big boys always seem to get away with murder.”
> 18:30: The NASD coming out of the 1930s initially did a good job, but over time it became less and less concerned with enforcement and more concerned with the appearance of enforcement.
> 20:00: Most state attorneys general don’t have resources to devote to securities regulations. It’s the rare state, California and New York for example, which undertakes real enforcement activities. (LD’s comment: I would add that Massachusetts has also aggressively undertaken serious enforcement of securities regulation.)
> 22:00: Too Much Wall Street money finds its way into campaign warchests with the result that its special interests rival those of the insurance and defense industries and as a result Congress and many state government initiatives have been subverted.
> 25:00: Every major financial institution has ‘cooked their books’ for the last five years.
At the 29 minute mark or thereabouts, our conversation truly elevates from the general nature of financial regulation to the very specific details of the cases Richard Greenfield and colleagues from the Washington D.C. based firm of Cuneo, Gilbert, and LaDuca are bringing against FINRA. I STRONGLY encourage you to listen to the next twenty minutes.
> 29:30: Greenfield provides background information on the complaint filed on behalf of the California based FINRA member firm, Standard Investment Chartered against FINRA.
> 32:00-44:00:
- Greenfield comments on some interesting connections between Bernie Madoff and Mary Schapiro, former head of FINRA and current head of the SEC.
- Documents provided by the NASD (now known as FINRA) to Greenfield and his colleagues show unequivocally that the NASD defendants lied to the NASD member firms regarding distribution of funds from the sale of the Nasdaq. Greenfield reiterates that these individuals lied blatantly and unequivocally. They intentionally lied. The lies are repeated over and over in a proxy statement provided to the member firms. The lies were repeated at roadshows which took place all around the country.
Who is they? Who lied? Who repeated the lies?
Mary Schapiro and senior officers in the NASD (FINRA)!!!
> The primary lie is the misrepresentation of the maximum proceeds that could have been paid to the NASD member firms. That figure was represented as being $35k when in fact it could have been much, much higher.
> Greenfield also highlights the fact that FINRA failed to perform in protecting investors from the Auction-Rate Securities scandal while liquidating its own ARS investment position in 2007.
> Greenfield sheds some light that he believes New York AG Andrew Cuomo is investigating FINRA’s liquidation of its Auction-Rate Securities investment.
>47:00
- Greenfield repeats his assertion initially made on September 3rd while appearing on America’s Nightly Scoreboard on Fox Business News (video clips can be seen here) that, based upon information and belief obtained from a source which Greenfield and colleagues believe to be reliable, FINRA had made investments with Bernie Madoff!!
- Greenfield believes that FINRA may have to be disbanded and the self-regulation of Wall Street may have to be scrapped because the self-regulatory model for this industry has failed.
- Greenfield concludes that Mary Schapiro talks a tough game, but is truly a non-regulator.
While Greenfield makes some serious allegations and charges in the course of this interview, he has unquestioned credibility and experience which comes from 40 years of fighting these battles.
Will the truth and transparency being sought in these complaints and which the American public so badly needs at this time come out? Do not discount the power of information. Please share this information which Richard Greenfield so descriptively and professionally detailed last evening with your friends and colleagues.
I thank you.
Questions, comments, constructive criticisms always appreciated.
LD
Tags: Andrew Cuomo, banking securities consumer litigation, Bernie Madoff, Bernie Madoff and Mary Schapiro relationship, confidence in regulators of financial system, Cuneo Gilbert Laduca, distribution of proceeds from sale of Nasdaq, Economy, faith in financial system, FINRA, FINRA executives lied, FINRA investment with Bernie Madoff, FINRA sale of auction rate securities, Greenfield & Goodman, markets, Mary Schapiro, Mary Schapiro lied, NASD enforcement, Richard Greenfield, securities regulation of state attorneys general, self-regulatory model for Wall Street, Standard Investment Chartered, trust in financial system, truth transparency and integrity on Wall Street, Wall Street, Wall Street enforcement, Wall Street lobbying, Washington D.C.
Posted in FINRA, General, Mary Schapiro, SEC, Wall Street, Washington D.C., regulation | 7 Comments »
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