Subscribe: RSS Feed | Twitter | Facebook | Email
Home | Contact Us

Posts Tagged ‘Jed Rakoff’

Judge Rakoff: “Truth is Confined to Secretive, Fearful Whispers”

Posted by Larry Doyle on November 28th, 2011 6:53 PM |

Many participants in our financial markets and political circles clearly have little interest in allowing a full exposition of facts and figures on a wide array of topics. Why let those trifling principles get in the way of maximizing profits and currying favor for political gain, right?

“That’s not how we roll” here at Sense on Cents.  Truth, transparency, and integrity are ALWAYS the order of the day.

Our prized virtues may not be embraced in our nation and the world at large, but that does not mean we should or will ever forsake them.  (more…)

Might the Hunter Become the Hunted? Judge Jed Rakoff, Mary Schapiro, and Rule 14a-9

Posted by Larry Doyle on February 18th, 2010 8:51 AM |

Judge Jed Rakoff and SEC Head Mary Schapiro

Judge Jed Rakoff and SEC Head Mary Schapiro

SEC Chair Mary Schapiro is on the front page of almost every major financial periodical for her ongoing pursuit to fine Bank of America for impropriety in handling its merger with Merrill Lynch.

Recall that the SEC had initially fined Bank of America $33 million last fall for its improper disclosure of Merrill’s financial figures to BofA shareholders prior to the shareholder vote approving the merger of these two financial titans.

Enter Judge Jed Rakoff who threw out the $33 million fine, calling it a ‘contrivance.’

With the ball squarely back in the SEC’s court, Mary Schapiro has now fined Bank of America a tidy sum of $150 million, but still did not pinpoint any single individual at BofA as being culpable for the impropriety. (more…)

Will America Learn This Thursday if Mary Schapiro is a Liar?

Posted by Larry Doyle on January 12th, 2010 12:20 PM |

Head of SEC, Mary Schapiro

Head of SEC, Mary Schapiro

January 14, 2010 at 4pm
U.S. Distict Court for the Southern District of N.Y.
Presiding Justice, Jed Rakoff

Will America learn this Thursday afternoon if SEC Chair Mary Schapiro did in fact lie verbally and in a proxy statement regarding the merger of the NASD with NYSE Regulation to form FINRA?

As I highlighted in my commentary yesterday, “The Financial Crisis Inquiry Commission Should Investigate…”, I believe FINRA and Mary Schapiro are truly the embodiment of the Wall Street-Washington cabal that stifles the truth, transparency, and integrity America so badly deserves.

For more details on this case and the upcoming hearing, I submit the following press release that came out this morning:

MAJOR NEWS ORGANIZATIONS ASK WALL STREET SELF-REGULATOR TO COME
CLEAN ON ALLEGED WRONGDOING AND URGE FEDERAL JUDGE TO UNSEAL
KEY REDACTED FINANCIAL INFORMATION IN BROKERS’LAWSUIT AGAINST
FINRA.
    Mary Schapiro and other NASD Managers Allegedly Lied to and
Shortchanged NASD Member Broker-Dealers in 2006 Merger with
NYSE and otherwise Violated Their Fiduciary Responsibilities.
 (more…)

Bloomberg Joins Ranks Calling for FINRA Transparency

Posted by Larry Doyle on November 9th, 2009 12:26 PM |

Calls for increased transparency from Wall Street’s self-regulatory organization FINRA continue to mount. How so?

None other than Bloomberg joins the ranks of Barrons, The New York Times, and Sense on Cents in calling on the courts to compel FINRA to release unredacted documents relating to the merger of the NASD with NYSE Regulation. That merger formed FINRA.

As I have highlighted previously, the core of a complaint filed on behalf of Standard Investment Chartered alleges that FINRA and assorted defendants, including current SEC head Mary Schapiro, misrepresented orally and in writing the financial terms involved in this merger. More specifically, the complaint alleges that FINRA and defendants lied in their representation of what the IRS would allow in terms of financial remuneration to FINRA member firms. (more…)

Is the Wall Street Cop, FINRA, Ready to Talk?

Posted by Larry Doyle on September 22nd, 2009 9:00 AM |

Pressure does funny things to people.

Is the pressure boiling inside the pot of the Wall Street “cop” known as FINRA getting ready to blow? A Bloomberg report indicates the steam is rising inside FINRA. I am not surprised that FINRA is feeling real pressure at this point in time. FINRA should be sweating. Why? Try the following:

>> Lawsuits Trying for Transparency at FINRA (September 21, 2009)

>> Attorney Claims Wall Street’s Cop, FINRA, Invested in Madoff (September 15, 2009)

>> An Open Letter to the Board of FINRA Regarding Auction-Rate Securities (July 27, 2009)

>> U.S. Attorney and SEC Investigating Lehman’s Auction Rate Securities Sales; They Should Also Investigate FINRA’s (May 29, 2009)

Bloomberg reports this morning, FINRA Board Said to Debate Releasing Report on Madoff, Stanford:

The U.S. brokerage regulator’s board is debating whether to release an internal report of its examinations of firms run by Bernard Madoff and R. Allen Stanford, according to people familiar with the matter.

Why should there even be a debate? Why isn’t it standard operating procedure that a financial self-regulatory organization such as FINRA would be mandated to provide total transparency of all its business dealings? Where FINRA has failed, transparency will serve as the  leverage to compel them to improve their policies and procedures. If current policies and procedures and past failures are exposed in the process, so be it. History has always shown that coverups only make bad situations worse.

I am heartened that FINRA board member Charles Bowsher, a man of real integrity, seems to be pushing FINRA to release information. Bloomberg asserts:

Bowsher, the committee’s chairman, is adamant the document be released, according to one person. He didn’t return a phone call seeking comment.

Finra spokeswoman Nancy Condon said the board formed the committee to review the examination program “in light of the Madoff and Stanford cases.” A draft was shared with the board, which will decide whether to release it, she said yesterday. She declined to comment on whether any board members oppose making the document public.

Finra, funded by Wall Street firms and overseen by the SEC, inspects and write rules for more than 5,000 U.S. brokerages. The board includes 10 representatives of the financial industry along with former regulators and academics.

Recall that to this point, FINRA has never willingly released information on its internal investment or oversight activities over and above what has been published in its annual reports. FINRA spokespersons, Herb Perone and Nancy Condon, have always maintained FINRA has released more information in its reports than it is required. If in fact that is true, then clearly FINRA’s overseer, the SEC, needs to increase those requirements.

The simple fact is, given the historic times in which we live any self-respecting financial regulator should be obligated to provide full and total transparency across all its initiatives. While FINRA may be embarrassed – if not worse – in the process, FINRA must provide this transparency if we are ever to regain confidence in our markets and our regulators.

Why else may FINRA want to talk? In a current lawsuit brought by Standard Investment vs. FINRA, the judge assigned to hear the case is none other than our friend of the American public, Jed Rakoff. Yes, the same Jed Rakoff who recently undressed the SEC’s contrived $33 million fine levied on Bank of America and stated the fine, “does not comport with the most elementary notions of justice and morality.”

Yes, indeed, pressure does funny things to people!!

LD






Recent Posts


ECONOMIC ALL-STARS


Archives