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Posts Tagged ‘NQR’s Sense on Cents with Larry Doyle’

A Real Regulatory Review: Sense on Cents Interview with Bill Singer

Posted by Larry Doyle on June 15th, 2009 1:35 PM |

I feel so strongly about my interview last evening with Bill Singer, the preeminent veteran Wall Street regulatory lawyer and market reform advocate, that I am providing a transcript of highlights. My transcription is not totally word for word, so at the end of this post I will provide a BlogTalkRadio audio player so that you can playback the complete interview.

As time allows, I sincerely hope you read the entirety of this transcript and will listen to the complete interview. In my opinion, the issues addressed are that important. You will not be disappointed.

Given Bill’s extensive experience and relationships, he is uniquely positioned to comment on these timely and cutting edge issues. And now, on to the transcript . . .

Sense on Cents: Bill, we have just gone through a tsunami of epic proportions. Our financial industry brought our nation to its knees. We now get the sense that the regulatory oversight of our financial industry may not truly change. What are your feelings about that?

Bill Singer: I think you are right on point. My greatest fear is at the end of the day, we all go back to square one. It’s like asking for a mulligan in golf. People’s lives have been shattered and businesses destroyed. If you listen to the ‘garbage’ coming out of Washington, it’s as if the solutions are the same old things. We’ll set up panels, write papers, but what will really change?  I don’t know what planet these people are living on, but last I looked, we haven’t gotten out of this crisis. We owe the next generation a much better regulatory system and a much fairer market. You just get this overwhelming sense that the ‘fix is in.’

Wall Street is wiping their brow and sweat and saying “whew, that was a close one.” It’s as if Wall street is telling Washington, “You’re still with us, aren’t you? We’re still paying for your campaigns.” I’m just afraid that nothing will really change other than some cosmetic changes.

Sense on Cents: I hope some real statesmen step up to address these issues. Since I’ve been writing, I believe we always get into the sufficiency of regulations. Which regulations need to be improved and which should be wiped away. I strongly believe, first and foremost, any industry has to have transparency and integrity in its process. As you just mentioned, it seems as if the ‘fix is in.’

Bill Singer: Larry, I’ve been reading your columns for quite some time now. This is not the time for anybody to be blowing smoke up anybody’s “you know what.”  We have a career cast of politicians and regulators who by and large have never really worked for a living and who don’t really have a sense of what the ‘everyday Joe’ goes through. What we need right now is new ideas, new blood. You can’t break into the system. If you have been one of the individuals who has been warning about the major issues for years, you’d think that you would be invited in to ask to contribute ideas to fix them. That never happens. Those folks who regulate us are a very closed society. We have a system in our country that feeds cronyism and there is no way out of it.

I have reached out repeatedly over the years to regulatory bodies and as a 30 year veteran, and a former regulator, if I can’t even get an interview (and I’m not saying I would even want the job; they probably couldn’t afford me), that tells me how corrupt the system is.

When the public reads about Harry Markopolos and Gary Aguirre who have tried to expose issues and they aren’t embraced, that speaks volumes. Regulation has been “in bed” with Wall Street for very long. We need a vibrant and intelligent regulatory system to protect the public against fraud and the industry against its own folly. (more…)

“Reflections and Outrage” by Robert Rodriguez: Strongly Recommended Reading

Posted by Larry Doyle on June 1st, 2009 5:00 AM |

Bob Rodriguez, Partner and Chief Executive Officer of First Pacific Advisors, delivered the keynote address the end of last week at the Morningstar Investment Management Conference.

Mr. Rodriguez is a 35 year veteran in the financial industry and a Morningstar Manager of the Year three times. In my humble opinion, there are none better in the industry today. As I referenced on NQR’s Sense on Cents with Larry Doyle last evening, I totally concur and feel strongly about Mr. Rodriguez’s powerful pearls of wisdom. I beseech you to read this address, save it, read it again, and share it with your colleagues!

Allow me to comment and highlight Mr. Rodriguez’s major focal points. Mr. Rodriguez addresses every major issue in our financial world today. He layers those issues on top of the potential social impact our country faces. Mr. Rodriguez is not bashful in highlighting that our day of reckoning is upon us. I have read this piece three different times. I am more impressed and in greater agreement with his assertions after each reading.

Rodriguez addresses the following:

1. the need for personal and professional discipline and integrity

2. he recounts an experience in which he was solicited to “pay to play” by his biggest account . . . he passed and never regretted it

3. he castigates the financial industry for its performance over the last few years (be mindful he delivered this speech to an audience of financial managers!!)

4. he talks about how and why he has made a major shift into energy stocks within his fund!!

5. the changing nature of the markets and the global economies.

6. he rails on Alan Greenspan

7. Rodriguez offers, “my trust has been severely shaken in the Federal Reserve, the Treasury, the Congress, and the Executive Branch of government…”

8. “the regulatory agencies and federal government were complicit in laying the groundwork that allowed many of these credit excesses to develop prior to this economic crisis.”

9. he addresses the horrendous business practices being promoted by GMAC.

10. the positive economic impact of the Stimulus will be offset by ongoing reduction in consumer spending.

11. “we have to be careful about what is meant by sacrifice . . . a democratic government is the only one in which those who vote for a tax can escape the obligation to pay for it.”

12. Rodriguez’s outlook on the market:

   — we are currently experiencing a bear market rally

   — corporate earnings will disappoint

   — the stock market overall will be price constrained for TEN YEARS

   — “I view the Treasury market as being in a bubble territory with foolish leaders at the helm.”

   — the bulk of the economy’s credit problems are still to come as charge-offs on trillions of dollars in loans remain to be recognized.

Reflections and Outrage
by Mr. Robert Rodriguez
Partner and Chief Executive Officer First Pacific Advisors

MUST READ!!

LD

NoQuarter Radio’s Sense on Cents with Larry Doyle Will Be Back Next Week

Posted by Larry Doyle on May 24th, 2009 2:00 PM |

In observance of Memorial Day weekend, NQR’s Sense on Cents with Larry Doyle will not be broadcast this evening.

I hope you are able to enjoy the holiday with family and friends while reflecting on the people and values Memorial Day celebrates. We are currently living through historic times, but we can never afford to forget the sacrifices of the special men and women who fought for our freedoms. God bless them.

Even though I will not be broadcasting this evening, if there are any questions or topics you’d like me to address, please do not hesitate to ask.

Thanks for your support!!

LD






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