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Posts Tagged ‘Mary Schapiro tenure at FINRA’

The Muammar Gaddafi of Regulation

Posted by Larry Doyle on May 26th, 2010 9:14 AM |

Does anybody still read Time magazine?

I would expect that Time is likely now relegated to 9th grade Civics classrooms given the depth of reporting embodied in the recent cover article, The New Sheriffs of Wall Street.

If Time would like to be considered a serious publication, they should dig a little deeper prior to reporting this sort of powder puff commentary. Time rightfully does address the fact that Wall Street has been a bastion of male domination. Additionally, they pay proper respect to FDIC Chair Sheila Bair and Tarp watchdog and consumer advocate Elizabeth Warren, but they fall woefully short in their characterization and review of SEC Chair Mary Schapiro.

In this article, Schapiro would clearly like to portray herself as tough as nails on Wall Street while protecting the interests of investors. As Time highlights: (more…)

FINRA Board to Form Committee to Review Claims of Schapiro Misconduct

Posted by Larry Doyle on February 12th, 2010 4:53 PM |

When in doubt, form a committee and have more meetings. This rope-a-dope style of leadership is all too prevalent in our nation. Why is it that the Wall Street-Washington incest can not be exposed for what it really is? When will somebody in our country display integrity and leadership while acknowledging the existence and stench of this incest?

Recall that the board of FINRA was meeting this past Wednesday to address allegations of misconduct by Mary Schapiro and other FINRA execs. Although the media has presented this meeting as merely addressing questions of excessive compensation for Ms. Schapiro and others, the allegations of misconduct made by attorneys for Amerivet Securities run far deeper than that.

These allegations address the following: (more…)

Making Sense on Cents in 2010

Posted by Larry Doyle on December 31st, 2009 9:58 AM |

What can Americans do to make more “sense on cents” in 2010?

With the divide between Wall Street and Main Street never wider and only widening further, how can Americans collectively make their voices heard?

I will provide a few simple pieces of advice:

1. Send a message to both Wall Street and Washington supporting the lawsuits currently outstanding against Wall Street’s self-regulator FINRA. These lawsuits would go a long way in exposing the incestuous relationship between the Wall Street banks and the Washington establishment.

To facilitate this undertaking, I recommend readers forward “Mary Schapiro Owes America Some Answers” to their elected representatives, friends, family, and colleagues.

2. Hat tip to a Sense on Cents reader for providing a link to a great idea promoted by Arianna Huffington called Move Your Money. The website provides guidance as to the strongest community banks by zip code. Very simply, this idea encourages people to move their money from the large Wall Street banks, which are wedded to Washington, into small community banks. I put this idea in the camp of “money talks, bull%$#@ walks.”

I encourage readers to make sure they stay within the FDIC-insured limits when making deposits in any bank. In the spirit of the season, the following video provides an inspiring look at the idea to “Move Your Money.”

Together we can make a difference.

LD

Media Attention Increases Heat on Mary Schapiro and FINRA

Posted by Larry Doyle on October 25th, 2009 1:44 PM |

Is the American public about to get a wider view into the relatively concealed world of Wall Street self-regulation? I believe so. The momentum towards real transparency is “heating up.” How is the temperature rising in the kitchens of SEC chief Mary Schapiro and her former colleagues at the Wall Street self-regulatory organization FINRA?

The widely read and enormously respected financial periodical Barron’s writes at length this weekend about a specific case which Sense on Cents has been addressing for the last few months. This case (Standard Investment Chartered v FINRA, NYSE Group, Mary Schapiro et al) is highlighted in Barron’s reporting of Suit Puts SEC Chief on the Hot Seat:

Did Securities and Exchange Chairman Mary Schapiro, in her former role as head of the National Association of Securities Dealers, approve a misleading proxy that helped boost her pay and those of other NASD executives?

I highlighted the points raised in the Barron’s article this past Thursday in writing “Nasdaq Sale: Why Would Schapiro and FINRA Execs Lie?”

I am heartened by Barron’s reporting. Why? I have written extensively about Ms. Schapiro and FINRA over the last ten months. I have been asked by dozens upon dozens of readers and friends as to why the mainstream media has not focused more attention on topics and questions which strike me as having enormous importance.

I believe the issues embedded in the questions I have raised are potentially explosive in terms of their impact on the entire financial regulatory structure in our country. Given their explosive potential, I believe many media outlets have not wanted to address them for fear of running the wrath of the power structure on Wall Street. That said, heat and pressure appropriately applied typically produce results. I believe the Barron’s article will go a very long way toward producing the much needed truth and transparency in our Wall Street regulatory structure. This development is outstanding. That said, the questions Ms. Schapiro and FINRA need to face go well beyond the topics addressed in the Barron’s article.  What other questions must be fully addressed? I submit the following:

1. America deserves to know the full extent of FINRA’s internal investment activities.  Did FINRA invest in Bernie Madoff as alleged in a lawsuit filed by Amerivet Securities v FINRA this past August? I submit from September 15th, 2009: “Attorney Claims Wall Street’s Cop, FINRA, Invested in Madoff.”

2. America deserves to know whether FINRA possessed material non-public information and utilized it in the liquidation of its own $647 million Auction-Rate Securities position in mid-2007. Those unaware should know that the ARS market was failing at the time. Additionally, federal judges have designated the sales and marketing of ARS as to have occurred in a fraudulent fashion. Thousands of investors with upwards of $160 BILLION in ARS remain unable to access their funds. FINRA was charged with protecting investors. They did anything but protect. I submit from May 21st, 2009: “U.S. Attorney and SEC Investigating Lehman’s Auction Rate Securities Sales; They Should Also Investigate FINRA’s.”

If the specific case referenced by Barrons proceeds, Ms. Schapiro may very well have to recuse herself since the SEC, which she currently heads, would likely be involved in the investigation of FINRA, her former employer. As such, I repeat my question from a few months ago in regard to whether Ms. Schapiro would recuse herself. Her recusal would take real courage. I submit from June 4th, 2009: “How Courageous Is Mary Schapiro?”

If in the process of discovery and investigation Ms. Schapiro and her former FINRA colleagues are not cooperative in the public pursuit of truth and transparency, it may then very well be that President Obama and his financial advisers will be faced with an “Independent Investigation Required” much as I had written on April 21st , 2009 and repeated on May 21st, 2009 in writing “Mary Schapiro Still Not Being Questioned; Independent Investigation Still Required.”

As the temperature rises in Ms. Schapiro’s kitchen, Sense on Cents will continue to monitor developments very closely and continue to press for real transparency in the process.

LD






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