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HomeTransparency at the SEC? Why Would They Want to Do That?
Posted by Larry Doyle on July 29th, 2010 7:10 AM |
Is the SEC’s Inspector General David Kotz looking for a new job? How about SEC Head Mary Schapiro? Is she also looking for a new job?
Why do I ask? Is America aware that the new Financial Regulatory Reform bill, recently passed by Congress and signed into law by President Obama, will effectively close the doors and shut the blinds at the SEC in terms of people being allowed to gain access to information? Why and how do situations like this happen? Let’s navigate.
Fox News highlighted this travesty yesterday in writing, SEC Says New Financial Regulation Law Exempts It from Public Disclosure:
So much for transparency. (more…)
The Cost of Doing Business
Posted by Larry Doyle on July 28th, 2010 7:15 AM |
It takes money to make money.
Simple business principle, correct? A basic, fundamental business tenet, right?
Well if the money it ‘takes’ is used to pay inordinate fines and penalties resulting from management’s willingness to jeopardize reputation and principle in pursuit of profit, what does that say about the business enterprise itself?
Will the $550 million fine recently imposed on Goldman Sachs fundamentally change the manner in which Goldman engages clients and operates its business? I have chuckled more than a few times upon reading that Goldman’s mortgage employees involved in the structuring, trading, and sales of the securities at the center of this entire debacle will have to undergo continuing education type classes. These classes are truly nothing more than a ‘check the box’ perfunctory exercise. Honestly, I would love to be a fly on the wall during these classes as I am sure some of the material covered and accompanying discussions would provide real comedic fodder. (more…)
Has the Recession Really Ended?
Posted by Larry Doyle on July 26th, 2010 11:25 AM |
In the course of a discussion this past week, I made the point that I do not believe our economy has ever truly come out of the recession which officially began in December 2007. The National Bureau of Economic Research (NBER) is responsible for measuring the start and end dates for economic contractions and expansions. Why is it that the NBER has never officially declared an end to the recession? Interesting, very interesting.
On this topic, a good friend shared with me a fabulous piece which addresses our current economic health and the major hurdles for our future economic growth and prosperity. This piece, Quarterly Review and Outlook by Hoisington Investment Management in Austin, TX, addresses these hurdles in forthright, layman’s fashion. (more…)
Persistence Pays Off in Colorado Complaint Against E*Trade
Posted by Larry Doyle on July 24th, 2010 3:50 PM |
“The only thing necessary for the triumph of evil is for good men to do nothing.”
This quote is commonly attributed to Edmund Burke, an Irish statesman, author, orator, and political philosopher who lived in the 1700s. The depth of Burke’s words continue to resonate today. In fact, I thought of his words of wisdom when reflecting on the latest episode in the ongoing saga surrounding the auction-rate securities travesty.
No doubt there remain many miles to go and mountains to climb before real justice and full compensation are afforded all those who were defrauded in the distribution of auction-rate securities. That said, this week brought a small victory for all ARS holders — and one individual specifically — as word broke that the state of Colorado has filed a complaint against E*Trade for improperly distributing auction-rate securities. (more…)
Bruce Malkenhorst Should Thank Robert Rizzo
Posted by Larry Doyle on July 24th, 2010 10:15 AM |
Bruce Malkenhorst must be a very happy man today and for that he should thank Robert Rizzo.
Who is Malkenhorst? Who is Rizzo? What is the story here?
Readers may recall that 14 months ago, Malkenhorst, a former municipal employee in Vernon, CA was exposed as the recipient of a sweet little ‘half million dollar pension’ connected to his duties in the bustling metropolis of Vernon, CA. How bustling? Vernon, a community in southern California, has a total population of approximately 100 citizens.
Malkenhorst and his cronies in Vernon singlehandedly redefined the concept of municipal fiscal abuse. I highlighted this story and accompanying unbelievable details a year ago in writing a story which an inordinate number of readers have reviewed entitled California’s $100, 000 Club.
This week, Malkenhorst and his pals in Vernon must have partied real hard and toasted Robert Rizzo all week long. Why is that? (more…)
“You’re Playing with Sharks”
Posted by Larry Doyle on July 22nd, 2010 6:20 AM |
Is it safe to go in the water? In other words, is it safe to play in the markets under the current construct? Do small retail investors truly stand a chance against the ‘big boys’ on Wall Street running high powered algorithmic trading programs and assorted other high frequency trading mechanisms? Are fundamental traders being thrown around amidst the ‘high waves’ and ‘strong surf’ pounding the shore?
No doubt, the scene on Wall Street has changed dramatically over the years. The onslaught of high frequency trading complete with a wide array of ‘bait and tackle’ such as flash orders, dark pools, naked access, co-location, and much more make it extremely challenging — if not downright daunting — for those who believe they can navigate these waters with simple ‘rod and reel.’ (more…)
How Long Will ‘Walking Pneumonia’ Economy Last?
Posted by Larry Doyle on July 20th, 2010 6:28 AM |
I have told many people that I equate our current economic situation to a serious case of ‘walking pneumonia.’ If you have suffered from that dreadful malady, as I have, you can appreciate my sentiments. While we are going to live, and will move on from our current condition, the question everybody wants to know is how long will this sluggish, sickening episode last?
I wish I was so prescient as to be able to pinpoint the month and year when our economy may return to real vitality. I am neither that smart nor that egotistical. I do strongly believe, though, that we are looking at a number of years of continued underperformance. (more…)
FINRA Transparent? Why Would They Want To Do That?
Posted by Larry Doyle on July 19th, 2010 4:36 PM |
A month ago I highlighted a list of proposals presented to FINRA which would generate a significant level of transparency into Wall Street’s self-regulator. Given everything we have gone through over the last few years, who in America would not now want greater transparency from Wall Street’s self-regulator? I wrote FINRA Owes America Answers on These Proposals:
FINRA can talk about transparency and integrity all it wants. We all know talk is cheap. FINRA’s board and executives need to show America how they truly define and embrace transparency and integrity. How so? (more…)
