RSS Feed
Twitter
Facebook
Email
HomeKeystone Kops
Posted by Larry Doyle on March 9th, 2009 5:40 PM |
On the heels of the Bernie Madoff fiasco, there was massive pressure on the gross incompetence displayed by the SEC. Not unlike a police department that is under fire, the SEC needed a high profile case to gain a measure of vindication. Enter Allen Stanford and Stanford Financial.
I am not here to defend Allen Stanford nor any of the activities that transpired in his offshore bank located in Antigua. However, the SEC also froze the assets of all clients housed in Stanford Financial’s brokerage operation based in Houston. Unlike Bernie Madoff, who did not employ a custodian, the bulk of Stanford Financial’s assets were housed at Pershing Financial, one of the largest custodians in the business. While the concerns revolving around Stanford are in the Caribbean, the SEC’s act of freezing ALL customer accounts has been the death of this brokerage entity. Hundreds of legitimate jobs have been eliminated. Thousands of customers have faced unnecessary and undue financial hardships since February 17th as a result. (more…)
Warden Grows Veggies With Prisoners
Posted by Larry Doyle on March 4th, 2009 6:40 PM |
I highlighted back in mid-January the need to Let’s Really Question Ms. Schapiro. Now the chair of the SEC, Ms. Schapiro headed Finra and saw cases filed and fines collected decline by an estimated 35%. I was trying to make the case that Ms. Schapiro was nothing more than a warden growing vegetables in the same garden as the prisoners, given that Finra invested in hedge funds, fund of funds, private equity, and Auction Rate Preferred Securities. These ARPS were a scam perpetrated by Wall Street on clients. The bonds were marketed as cash surrogates with regularly scheduled auctions. When the auctions “failed,” the clients were left holding the bag in the form of the long term securities that ARPS truly are. OUCH!!
There are numerous individual customers still stuck with ARPS. I have spoken with an individual in my hometown, trying to help him publicize his case so that he can be made whole by a major bank that sold him the bonds. (more…)
Let’s Really Question Ms. Schapiro….
Posted by Larry Doyle on January 16th, 2009 2:54 PM |
In light of the disaster that is Wall Street, I do not know if I am simply dumbfounded or merely dismayed by the softball questioning of prospective SEC chairwoman Mary Schapiro yesterday.
With the dissolution of the investment banking model, the massive injections of government capital, and potential indictments of major Wall Street icons in the offing, I looked forward to some very juicy testimony. The results were beyond disappointing. The public deserves so much better.
Mary Schapiro may end up being the best SEC commissioner ever, but let’s make her earn a few stripes before anointing her. It’s not as if there isn’t enough material. Let me provide a little background before I propose my line of questioning for Ms. Schapiro.
FINRA, the Financial Industry Regulatory Authority, was formed as a result of the merger between the regulatory arms of the NYSE and NASD. While there is another securities industry watchdog, SIFMA (Securities Industry and Financial Markets Association), that body is more a trade association or good cop.
FINRA is supposed to be the real watchdog or the bad cop. (more…)
