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HomeJudge Huvelle: “Why Would I Find This Fair and Reasonable?”
Posted by Larry Doyle on August 18th, 2010 2:09 PM |
Wall Street has a funny way of meting out justice. All too often, investors are left with little more than ‘caveat emptor’ when it comes to engaging large Wall Street institutions. Beyond that, the SEC and FINRA are often critiqued for being more closely aligned with the industry than with investors. I was reminded of this fact when reading last week that the SEC settled with Citigroup for a token $75 million regarding Citi’s disclosure, or lack thereof, of its sub-prime holdings in the midst of our economic crisis.
My ‘sense on cents’ view of the world made me think that Citi got off awfully cheap for having misrepresented its financial positions. If $75 million is all it costs for misrepresentation of financial documents, then America should ready itself for a whole lot of misrepresentation. Thankfully, a judge threw a quick yellow flag on the field while indicating that this play needed further review. (more…)
Raymond James ARS Customer Requests/Offers Help
Posted by Larry Doyle on August 18th, 2010 7:23 AM |
Sense on Cents has been happy to provide a forum for auction-rate securities holders in general. On a more specific note, Sense on Cents has generated significant ARS interest from individuals remaining engaged with Oppenheimer and E*Trade.
We can now add Raymond James to the list of entities entangled in the auction-rate securities cesspool. While I am not in a position to pass judgment on the merits of every specific ARS client’s situation, the simple fact is so many of these situations are strikingly similar.
I am heartened that Sense on Cents has not only been able to provide moral support to many ARS holders but has also been able to pass along meaningful information in the process. In this spirit, I am compelled to highlight two comments left here Monday by an individual who remains frozen in ARS sold by Raymond James. While reading these comments, put yourself in this writer’s position. The fact is this writer and virtually every ARS investors are connected. I hope my highlighting his comments can help bring this individual and many others both moral and real support. (more…)
A Proposed Solution to the Foreclosure Crisis
Posted by Larry Doyle on August 17th, 2010 12:12 PM |
With the Conference on The Future of Housing Finance being held in Washington today, do we really expect the government to propose anything that may help support or fix our system of housing finance? I am not optimistic and I am an optimist by nature. I am a big believer in unleashing the power and strength of entrepreneurial minds to address our problems. Why haven’t these minds developed solutions? Do you think that these minds are stifled by the overwhelming presence of Uncle Sam? I do. Back to housing and entrepreneurial spirits.
I love when Sense on Cents can provide fertile ground for the free and open exchange of ideas, opinions, thoughts, and analysis on critically important issues of the day. I am deeply grateful when people not only comment here at Sense on Cents but I encourage people to provide written commentary. I can not promise that I will run every commentary that is submitted but I will seriously review and consider running those that I believe are deserving of greater exposure. I appreciate your allowing me to make those judgments. Plus ….it is my blog.
I have always maintained that jobs and housing are the two great linchpins upon which our economy rests. The government has thrown hundreds of billions of dollars at our housing crisis with no meaningful success….all reports aside. What can be done to solve the foreclosure crisis weighing on our housing market, our economy, and ultimately our nation? (more…)
Goldman Sachs and Uncle Sam’s “Games People Play”
Posted by Larry Doyle on August 17th, 2010 7:42 AM |
Why does it seem that whenever something really dicey happens on Wall Street, the crowd at Goldman Sachs is typically in the middle of it? How so? Let’s enter the world of new issue equity underwriting.
There is very little that is truly sacred on Wall Street. That said, one of the traditional “sacred untouchables” on the street of dreams has been the new issue equity underwriting spread. Maintaining this spread between a cushy 2% to 3% level is typically sacrosanct and actually more easily maintained now given the oligopoly that currently defines Wall Street. I have written extensively on how this game of oligopoly has been played on Wall Street circa 2010. (more…)
Fannie, Freddie Summit Preview
Posted by Larry Doyle on August 16th, 2010 4:03 PM |
In June 2009, I highlighted the expectation of massive losses within Fannie Mae and Freddie Mac in writing Uncle Sam’s Dirty Little Secret. Fourteen months and hundreds of billions of dollars in losses later, America awaits to see how our ‘wizards in Washington’ will look to deal with these housing ‘wards of the state.’ Tomorrow, the Obama administration hosts the “Conference on the Future of Housing Finance.”
In anticipation of this conference, this past April the Obama administration had asked for input as to how our housing finance system might work. I wrote then (and would like to resubmit now), Sense on Cents Responds to Obama Administration Request for Input:
President Obama wants input on the reform of the housing finance system. Given my career, I consider myself eminently qualified to give it to him. Despite this request, though, I still think he should focus on job creation (which he highlighted during his State of the Union address).
I welcome giving President Obama, Treasury Secretary Geithner, and the rest of the the White House economic team a very healthy dose of Sense on Cents. (My response is a little lengthy, but it is not everyday the President gives us this opportunity. Out of respect, I owe him my best effort.) I will let you know if they respond with anything more than a form letter, or if they do not respond at all. From the U.S. Treasury today:
Obama Administration Seeks Public Input on
Reform of the Housing Finance System (more…)
FINRA Gets New ‘Sheriffs’; Amerivet Proxy Proposals Approved!! Strongly Recommended
Posted by Larry Doyle on August 14th, 2010 12:14 PM |
Monday 8-16-10
I am continuing to keep this commentary as my lead post for three reasons:
1. I believe the potential impact of the developments in this story are enormous on the financial regulatory system in our nation.
2. This story received very little if any coverage outside of some industry newsletters.
3. Weekend traffic at blogs is considerably less than during the week.
I truly hope readers can fully appreciate the magnitude of the developments captured within this story. Sense on Cents’ pursuit of truth, transparency, and integrity took a giant step forward with the results of last week’s FINRA Annual Meeting. Have I piqued your interest? Read on and spread the word!! LD
Saturday morning in America!!
On this glorious morning on the east coast, I believe all Americans should be heartened by the results of the annual meeting held by Wall Street’s self-regulator, FINRA, this past Thursday. I remain convinced that FINRA as an organization remains an unknown entity to the overwhelming majority of the American populace. The results from this annual meeting may start to change that unfortunate reality. How so? Let’s navigate.
The Securities Industry Professional Association (The SIPA), long a thorn in FINRA’s side, actually trumped the FINRA release in highlighting the results of elections to the FINRA board of governors. Good for John Busacca and his colleagues at the SIPA in sending a strong message to FINRA that there are ‘new sheriffs in town.’ Yesterday the SIPA released,
SIPA Candidates Sweep FINRA Board Elections! (more…)
What is The Real Rate of Unemployment in the United States?
Posted by Larry Doyle on August 13th, 2010 8:06 AM |
Just what is the true rate of unemployment in our country? Our headline U-3 rate is currently 9.5%. Our U-6 rate, more broadly defined, is 16.5%.
Many people are aware of the differences between U-3 and U-6; however, renowned economist John Williams takes our analysis to an entirely new level. Williams is far ahead of the curve in his work.
William is likely not a regular on the Washington cocktail circuit. Why’s that? He goes far deeper in his work and exposes inconsistencies, if not worse, in government statistics. Let’s learn more about Williams and his work at Shadow Government Statistics:>>>> (more…)
Laurence Kotlikoff: “The U.S. Is Bankrupt”
Posted by Larry Doyle on August 12th, 2010 1:20 PM |
Nobody likes being told they are broke. While the truth may hurt, when you’re broke, you’re broke. Are we as a nation broke? Laurence Kotlikoff believes we are and expresses as much today in a Bloomberg commentary, U.S. Is Bankrupt and We Don’t Even Know It,
Let’s get real. The U.S. is bankrupt. Neither spending more nor taxing less will help the country pay its bills.
What it can and must do is radically simplify its tax, health-care, retirement and financial systems, each of which is a complete mess. But this is the good news. It means they can each be redesigned to achieve their legitimate purposes at much lower cost and, in the process, revitalize the economy.
Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”
But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. (more…)
Bill Clinton Makes Case for Sense on Cents
Posted by Larry Doyle on August 12th, 2010 10:35 AM |
Bill Clinton could be a spokesman for Sense on Cents. How so? As 5 News in Ft. Smith-Fayetteveille, Arkansas attests, Bill Clinton Says Country In “Mess” In Part Due to Lack of Economic Education,
The biggest names in Arkansas politics, including President Clinton and Governor Beebe, stopped by Northwest Arkansas today to promote economic education. Today President Bill Clinton joined the state’s political and business leaders at the Economics Arkansas luncheon to celebrate growth in Northwest Arkansas and the importance of economic education. (more…)
What Will We Learn from FINRA’s Annual Meeting on 8-12-10?
Posted by Larry Doyle on August 11th, 2010 12:20 PM |
Wall Street’s self-regulatory organization, FINRA, holds its annual meeting tomorrow inWashington D.C.. What will we learn? Will FINRA’s member firms vote for a number of non-binding proposals which would shine real light on the inner workings of this organization? America deserves to learn so much more than has ever been revealed about FINRA.
I have shared with many people that I believe the underlying tone of our markets would improve if FINRA were compelled to open its books and records. Why do I so strongly believe that? True transparency inherently breeds investor confidence. I made this very point to Joe Giannone of Reuters just the other day. Regular readers of Sense on Cents are fully aware of my feelings. Joe highlights the topics surrounding FINRA for a wider audience as he writes, FINRA Faces Calls to Lift Veil on Finances, Pay:
Wall Street regulator FINRA, which demands disclosure and openness from brokers, is under pressure to lift the veil on its own affairs.
The Financial Industry Regulatory Authority, a private corporation that regulates the nation’s 4,700 brokerages, will learns at its annual meeting on Thursday how many support a dissident’s call for more transparency. (more…)
