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

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

Posted by Larry Doyle on November 28, 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. 

In fact, my resolve in promoting these virtues has never been stronger. I am heartened when the truth does will out and welcome continuing to bang the drum. On that note, we read today in the WSJ’s reporting, SEC-Citi Pact Rejected by Judge Rakoff, the Judge is quoted as stating:

“In much of the world, propaganda reigns, and truth is confined to secretive, fearful whispers. Even in our nation, apologists for suppressing or obscuring the truth may always be found,” the judge said in his order Monday. “But the SEC, of all agencies, has a duty, inherent in its statutory mission, to see that the truth emerges; and if fails to do so, this court must not, in the name of deference or convenience, grant judicial enforcement to the agency’s contrivances.”

Thank you, Judge Rakoff. I would maintain, though, that the truth is restricted and confined to secretive whispers not only in much of the world, but also right here in “the land of the free and the home of the brave.”

In fact, I am sure there are many who will read this commentary who could share examples of where and how the truth within our nation has been inhibited, if not fully restricted. Please join me in adding to my calls for greater transparency and exposing the truth on the following topics:

1. What was the real nature of the relationship between Bernie Madoff and the regulators at FINRA, especially Mary Schapiro?

2. What are the details of the liquidation of ~$650 million auction-rate securities from FINRA’s internal investment portfolio in 2007? Did FINRA front run the ARS market in the process? Did it benefit from having access to inside information not shared with investors?

3. What is the real truth to the payment of funds to FINRA’s member firms during the merger of the regulatory arm of the NYSE and the NASD to form FINRA? Did FINRA intentionally misrepresent the facts both verbally and in the written proxy used for this merger?

4. What really happened inside Bernie Madoff’s operation? Why haven’t we seen meaningful results or heard more from Madoff’s CFO Frank DiPascali who pled guilty a long time ago? Why? Where’s the truth here?

5. What was the real nature of the relationship between Allen Stanford and the Department of Justice? Was Stanford running a Ponzi scheme simultaneously while  operating a front for the DOJ to infiltrate the drug trade in central and South America? We have heard little about Mr. Stanford for a long time.

6. Why haven’t we ever seen any developments on what appeared to be a clear cut case of insider trading by former Goldman Sachs honcho and then chair of the New York Fed Stephen Friedman. Recall that Friedman purchased a not insignificant block of Goldman stock during the period when the Wall Street firm was receiving a large amount of bailout funds. Friedman was pushed out of his position at the NY Fed as a result but what about truth and justice here?

7. Will we learn the whole truth as to what transpired at MF Global and the role that Jon Corzine played during those fateful days when the firm was going down?

8. Will we learn the truth as to what really happened in the fraudulent robo-signing practices within the mortgage operations of our large money center banks?

9. Will we ever learn the truth as to insider trading allegations within the credit derivatives market leading up to and throughout our market meltdown of 2008?

10. Will we ever learn the truth as to the nature of political payoffs, –er, I mean, political contributions — from those within our financial services industry to their incestuous partners in Washington?

11. Why is it that a documentary on the $330 BILLION ARS (auction-rate securities) crisis HAS NEVER BEEN aired in our nation? Will we ever learn the truth on that front? When might those investors still stuck with tens of billions of dollars worth of frozen ARS ever get the return of their funds from these supposed cash surrogate investments?

Who can add to our list? Who knows more and is willing to question where the truth lies on hidden fees and abuses within the mutual fund industry? What about failed regulatory practices?

Might the answer to some of our questions address why Harry Markopolos made the bold statement that we should not trust our government?

Please do not be bashful in adding to our list so that the truth in our nation is not confined to secretive, fearful whispers.

No secrets or fearful whispers here. Please keep spreading the Sense on Cents.

Larry Doyle

Isn’t it time to  subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook? Do your friends, family, and colleagues a favor and get them to do the same. Thanks!!

I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.


Recent Posts