Posted by Larry Doyle on March 15th, 2010 9:50 AM |
Bloomberg just provided a sneak peek at the Financial Regulatory Reform package to be proposed by Senator Chris Dodd (D-CT) this afternoon. What are some of the highlights and my thoughts? Let’s navigate.
From the top down, and without being overly cynical, I am extremely concerned that this proposed financial regulatory reform is a reshuffling of deck chairs with increased powers for both the Federal Reserve and U.S. Treasury. The very fears I voiced almost a year ago remain entrenched. What is the basis of my fear? The so-called reform is much more focused on the “sufficiency” of regulation of our financial industry and not nearly focused on the “transparency” of the regulation, the regulators, and the regulated.
Call me suspect.
What are the key highlights as reported by Bloomberg? (more…)
Posted by Larry Doyle on March 11th, 2010 2:08 PM |
…shame on you, fool me twice, shame on me!!!
There are a handful of financial journalists who pull no punches in telling the absolute truth and in providing real transparency. Bloomberg’s Jonathan Weil holds a special spot in the Sense on Cents Hall of Fame for his determination in calling people and institutions on the carpet. From Wall Street to Washington to around the global financial landscape, Weil leaves no stone unturned in promoting integrity. His commentary today is superb. Please share it with friends. Weil writes, Greece Lifts a Page From Citigroup’s Playbook:
Is it too much to ask for the world’s titans of government and finance to speak credibly when they open their mouths? (more…)
Posted by Larry Doyle on March 6th, 2010 12:24 PM |
Regular readers of Sense on Cents know all too well my questions and concerns about the lack of transparency at the Wall Street self-regulatory organization FINRA (Financial Industry Regulatory Authority).
I am a big fan of promoting transparency in order to pursue integrity. Who else is a big fan of the same goals? The Project on Government Oversight (POGO) :
. . . an independent nonprofit that investigates and exposes corruption and other misconduct in order to achieve a more effective, accountable, open, and ethical federal government. (more…)
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…)
Posted by Larry Doyle on February 22nd, 2010 3:59 PM |
Score major points for former Fed Chair Paul Volcker in his pursuit to restructure Wall Street. How so?
A letter in this morning’s Wall Street Journal from five former Treasury Secretaries endorses Volcker’s proposal to limit proprietary trading activities in our largest banks. The letter reads,
We who have served as secretary of the Treasury in both Republican and Democratic administrations write in support of the proposed legislation to prohibit certain proprietary activities of commercial banking organizations—the so-called Volcker rule, as part of needed financial reform (“It’s Time for Financial Reform Plan C,” by Alan Blinder, op-ed, Feb. 16).
The principle can be simply stated. Banks benefiting from public support by means of access to the Federal Reserve and FDIC insurance should not engage in essentially speculative activity unrelated to essential bank services. (more…)
Posted by Larry Doyle on January 29th, 2010 8:31 AM |
Time.
The policies implemented in Washington are trying to buy time in hopes that our economy recovers. Japan took the ‘buying time’ approach and twenty years later they are still waiting for real recovery.
Moving forward.
The approach being taken by those within our financial regulatory structure (SEC and FINRA) is to ‘move forward.’ Well, unless the critically unanswered questions and issues embedded within these organizations are fully exposed and addressed, America can never truly move forward with confidence in the markets and those overseeing them.
President Obama wants real financial regulatory reform. Then Mister President, compel your chair of the SEC, Mary Schapiro, to open the books and records of FINRA. Mr. President, compel Ms. Schapiro to unseal documents regarding the very formation of FINRA itself.
America knows something still smells on Wall Street. What is it? (more…)
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…)
Posted by Larry Doyle on December 13th, 2009 11:36 AM |
Only in Washington could the promotion and passage of a piece of legislation known as Financial Regulatory Reform overlook the Financial Industry Regulatory Authority (FINRA).
How could this happen? What does it mean? Why haven’t legislators and large parts of the media questioned this reality?
I am not saying that there are not significant elements of the reform bill passed by Congress that are not necessary. But I am questioning how and why a piece of legislation that strikes at the core of the financial industry can possibly wind its way through Congress without ever addressing FINRA, the entity charged with overseeing Wall Street and protecting investors.
Our country not only needs effective and strong financial regulatory practices but, much more importantly, our country needs effective and strong financial regulatory practitioners.
Let’s return to my questions. How could this happen? What does it mean? Why haven’t legislators and large parts of the media questioned this reality?
The fact is, Congress intentionally overlooks the ineffective practitioners of financial regulation because it would expose the extensive incest amidst the financial industry, the regulatory authority, and Washington.
If Washington truly wanted to inspire confidence in financial regulatory reform and send a strong message to America that it is seriously motivated to clean up Wall Street, our leaders would publicly support the lawsuits pending against FINRA.
Regular readers of Sense on Cents know the particulars of these lawsuits well. For newer readers, I am referring to the following: (more…)
Posted by Larry Doyle on November 30th, 2009 9:34 AM |
“Kiss me!!”
“What?”
That’s right, I said, “Kiss me!!”
Many a businessman is familiar with the basic principle of “kiss me,” that is “Keep It Simple, Stupid.”
Regrettably, Washington is not familiar with that simplest of business principles. Legislative bills that run into the thousands of pages and admittedly go unread by our lawmakers prior to vote are often an unmitigated disaster for American business. How so?
These bills create an environment of uncertainty. What do business leaders do when they’re unsure of what is coming out of Washington and how it might impact their business? “When in doubt, wait it out.”
I witness increasing evidence of this basic business dynamic and believe it will be on full display this coming Thursday. What will happen Thursday? President Obama is hosting a Jobs Summit in Washington. Sounds like a reasonable idea given the domestic employment situation is so bad and getting worse, despite assertions to the contrary by a number of public officials and economists.
How convenient that the summit is being held Thursday. Why? This summit will provide plenty of photo ops and media coverage highlighting that Washington is hard at work addressing the employment situation right before the monthly unemployment report is released on Friday morning. Do not think for a second that the timing of this summit was not strategically scheduled to negate the negative impact of another weak report. (more…)
Posted by Larry Doyle on September 15th, 2009 3:23 PM |
On the heels of President Obama’s speech on Wall Street in which he called for meaningful financial regulatory reform, I welcome submitting to him and the American public the following video clips. These clips are from Fox Business News “America’s Nightly Scoreboard” with David Asman on September 3rd.
While President Obama and Congress may believe financial regulatory reform needs to focus on the SEC, the Federal Reserve and assorted other governmental agencies, I would remind the President and his Congressional colleagues that Wall Street is regulated not only by the SEC but to a great extent by the self-regulatory organization known as FINRA (Financial Industry Regulatory Authority).
This discussion on “America’s Nightly Scoreboard” is separated into two parts.
Highlights from the videos include:
1. Richard Greenfield, an attorney representing Amerivet Securities, makes the claim that FINRA under the leadership of Mary Schapiro failed to protect investors.
2. Former SEC chair Harvey Pitt defends Shapiro and FINRA
3. Greenfield indicates that a FINRA insider claims FINRA invested in Madoff!!
4. In Part II of the video clips, your host here at Sense on Cents joins the panel and provides details as to why FINRA, via its parent the NASD, did have responsibility to oversee Madoff. I also comment on the nature of the relationship between Wall Street and Washington, FINRA’s investment and timely liquidation of its Auction-Rate Securities position, and the need for total transparency at FINRA.
4. Head of the Madoff Victims Coalition for Investor Protection, Ronnie Sue Ambrosino, weighs in that the entire regulatory structure from the SEC to FINRA to SIPC (Securities Investor Protection Corporation) have failed to protect investors.
In my humble opinion, the conclusion of this show highlights the screaming need for FINRA to open its books and records for a full and thorough independent analysis and review. In so doing, hopefully investors specifically and the American public at large can regain a degree of confidence in the badly shattered Wall Street regulatory process.
If you care about the markets and our country, I beseech you to watch this 18 minute video in its entirety.
Thoughts, comments, questions always welcome and appreciated.
Join LD every Sunday night at 8 p.m. ET for an hour's worth of internet talk radio about the economy, markets and global finance. Call in, ask questions, and share thoughts as we navigate the economic landscape. ****** Listen NOW to an audio recording of Larry's latest show from March 14, 2010:
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“Kiss me!!”
