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Posts Tagged ‘financial regulation’

Taibbi Further Investigates Furey v SEC

Posted by Larry Doyle on June 3rd, 2013 10:11 AM |

Wouldn’t you like to have been a fly on the wall to witness what really went on  – and still goes on — within the offices of the SEC and our other financial regulators?

Oh the stories and tales of woe that one might be able to share. Every now and then, though, one does not need to worry about being a fly because details of internal intrigue make their way out of the commission.

To that end, a few weeks back both Bloomberg’s Bill Cohan and I shed light on the incredible allegations of incompetence, negligence, if not outright corruption within the SEC made by an internal whistleblower Kathleen Furey.

Over the weekend Rolling Stone’s Matt Taibbi provided even greater transparency on the incredible — or in light of what we have learned about the SEC, perhaps not so unbelievable — allegations made by Ms. Furey in her whistleblower complaint. Those familiar with this case may recall that Furey alleged her superiors within the SEC’s New York office maintained that they did not handle cases dealing with investment managers. Incredible? Unbelievable? Maybe not so much.
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Simon Johnson: Financial Power Corrupts System

Posted by Larry Doyle on May 23rd, 2013 9:05 AM |

Incestuous activity in every fashion is a destructive and corruptible force. Would anybody hoping to be regarded as a serious, credible individual dare say, “Hey, I think incestuous activity is actually pretty good.”

Certainly not, although those engaged in the behaviors may appreciate the benefits that accrue to them without wanting them brought to light.

On that  note, the incestuous dynamic that defines the Wall Street-Washington-Regulatory menage-a-trois continues to thrive. You don’t have to take my word for it. Let’s listen to what Simon Johnson, former chief economist of the IMF, professor at MIT Sloan, and a senior fellow at the Peterson Institute for International Economics has to say on this topic.  (more…)

Attention: All Investment Advisers and Investors…

Posted by Larry Doyle on May 3rd, 2012 7:29 AM |

The financial regulatory landscape is poised to change and, as far as I am concerned, not necessarily for the better.

Will you be merely a spectator or do you care to participate in the legislative process that WILL impact most of you? Are you an investment adviser? Are you an investor with funds managed by an investment adviser?

If you fall into either of those camps, I exhort you to get involved. I encourage you to become part of the process and the solution and not merely a bystander. How so? Let’s navigate.  (more…)

Can Congress Read? Does It Open Mail Re: FINRA?

Posted by Larry Doyle on June 29th, 2011 1:59 PM |

Do those in Congress know how to read? Do they open their mail?

News is leaking that Congress may be inclined to have Wall Street’s self-regulator, FINRA, gain oversight of the investment advisory industry. That industry is currently regulated by the SEC and operates under a fiduciary standard.

The industry is fighting tooth and nail NOT to be regulated by FINRA which regulates broker-dealers under the less stringent suitability standard.

While the investment advisory industry and FINRA are duking it out, let’s return to my initial questions. Do those in Congress know how to read? Do they open their mail? Why do I ask?  (more…)

Matt Taibbi Exposes Wall Street’s Regulatory Capture Strongly Recommended

Posted by Larry Doyle on February 17th, 2011 6:30 AM |

Regular readers may be accustomed to my designating the relationship between our financial industry and the political crowd as the “Wall Street-Washington incest.” The technical term for this relationship is regulatory capture, as defined by our investing primer:

…the process by which regulatory agencies eventually come to be dominated by the very industries they were charged with regulating. Regulatory capture happens when a regulatory agency, formed to act in the public’s interest, eventually acts in ways that benefit the industry it is supposed to be regulating, rather than the public.

Bingo!! That’s the incestuous relationship we’re talking about.

Is the game really on the up and up? How does regulatory capture work? Who are the financial cops really protecting?

Thank you to the number of readers who pointed out to me an amazing expose of regulatory capture written by Matt Taibbi in Rolling Stone. Taibbi provides extensive detail in writing, Why Isn’t Wall Street in Jail? This article is a must read. (more…)

CNBC Appearance This Afternoon at 2:40pm >>> UPDATED with Video

Posted by Larry Doyle on November 24th, 2010 10:44 AM |

***Update: video clip included below

If you’ve got some time this afternoon, please check in to CNBC’s Street Signs at 2:40pm as I will be discussing the recent insider trading probe and the implications it has on our markets.

Hopefully, I’ll be able to grab a video clip of the segment to post later today or tomorrow.

Larry Doyle

Please subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook.

I have no affiliation or business interest with any entity referenced in this commentary. As President of Greenwich Investment Management, an SEC regulated privately held registered investment adviser, I am merely a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.

Without Freedom of Information, Who Will Keep the Regulators Honest?

Posted by Larry Doyle on September 16th, 2010 7:36 AM |

Information is everything.

Without access to information, how can we ever learn the full and true stories currently buried beneath our financial and economic landscape? Unearthing information through every means possible is a tedious — but necessary — pursuit if we are ever to learn our mistakes and failings of the past so that we can improve our economic standing in the future.

While those in Washington would maintain that they are charged with unearthing this information, there is little doubt that the American populace at large has little confidence in the rigor of that pursuit. The greatest of Jesuit principles instilled in me from my days at Holy Cross is the ‘never ending pursuit of the truth.’ That pursuit brings us today to a story which has received significant coverage here at Sense on Cents, but not nearly enough coverage elsewhere. Let’s navigate as The Wall Street Journal writes, SEC Looks to Allay Fears on FOIA Limits: (more…)

Lots of Laughs and ‘Sense on Cents’ With New York’s Bravest

Posted by Larry Doyle on September 14th, 2010 7:25 AM |

How often do we not remember what we did last week, while never forgetting the jokes told and the 3-putt greens in the midst of friends at a charitable golf outing? I was fortunate yesterday to play in a local charity golf outing with some of New York’s Bravest. While the funds raised were not for the benefit of the NYFD itself, the fact that I was able to spend time in their company was awesome. Reminiscing about past golf outings while simultaneously making new memories which we can share in the coming years was spectacular.

As has happened in the past, and given that this outing occurs shortly after 9-11, our conversation included recollections of that fateful day. The depth of their feelings and memories of so many lost friends and fallen comrades are truly palpable. May we never forget. I am not writing today to rekindle those memories, but I do feel compelled to pay respect to all those members of the NYFD and NYPD who made the ultimate sacrifice that day.

While  the best memories from a day like yesterday are from the interaction with The Bravest, other members of our respective groups are also top shelf and actively involved in the markets. While there is plenty that occurs on a golf course that is best left on the golf course, in the midst of lost balls and missed putts, there were plenty of comments and opinions on our markets and economy. While I lost my share of golf balls, I picked up plenty of insights including: (more…)

Is FINRA’s Board Tone Deaf?

Posted by Larry Doyle on August 20th, 2010 3:15 PM |

When might a voting process with overwhelming returns be negated by the wishes and desires of the powers that be? Am I speaking of those who may occupy bully pulpits in third world nations? No, that guess would not be close. 

Am I referring to political leaders who are protected by military and business minions? Nope, still quite cold.

How about a board that is more affiliated with an organization’s executives than with its members? We are getting warmer.

What about financial regulators and a board who have the reputation of being much more closely aligned with major players within the financial industry than their rank and file members and American investors at large? Bingo!!

Let’s get more specific. A week ago, FINRA’s member firms voted overwhelmingly in favor of seven non-binding proxy proposals put forth by Amerivet Securities. In light of the vote and the overwhelming results, one would have thought that FINRA’s board would have absolutely no choice but to fully address these proposals. To do otherwise, one would think that the FINRA board might run the risk of further alienating its membership while sending a message to the American public at large that transparency and disclosures are virtues this financial regulator speaks of but does not truly practice.  (more…)

Calling All Auction-Rate Securities Holders

Posted by Larry Doyle on August 10th, 2010 6:42 AM |

Without information there can be no real truth. Without truth there can be no real justice. Without justice, what is the quality of our nation and ultimately our civilization?

Why do so many Americans remain enraged at the economic travesty of the last few years? For the very simple reason that those regulators who were charged to protect American investors not only failed in their initial charge but to a large extent have continued to fail investors by not aggressively pursuing justice where financial improprieties–if not outright fraud–transpired.

To this end, why am I not surprised that many auction-rate securities holders have quickly directed their attention and focus to the state of Colorado where securities commissioner Fred Joseph has filed a complaint against E*Trade for improperly marketing and distributing auction-rate securities. Other ARS holders are hoping Commissioner Joseph will take a similar tact on their behalf against other firms for the same reason.

In order for the Colorado state securities commissioner to pursue the truth, he needs the information. (more…)






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