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Home“Insider Trading Is Rampant and Routine”
Posted by Larry Doyle on January 19th, 2012 1:15 PM |
As much as Wall Street is the center of the financial services industry, it is really a simple business that revolves around people and information.
That basic reality makes this business so fascinating. The personalities, the pace, the flow of data, and ultimately the interaction between counterparties make everyday a fascinating experience.
In order for Wall Street to thrive, though, and for our markets and economy to prosper, there needs to be a premise and a pursuit of fair dealing on a level playing field. (more…)
Jon Corzine v Edith O’ Brien: Let’s Rumble
Posted by Larry Doyle on January 18th, 2012 11:41 AM |
Some of the largest financial debacles of our lifetime revolved around individuals who were able to effectively arbitrage, that is knowingly manipulate, their back office operations.
I refer specifically to the financial follies surrounding Joe Jett and Kidder Peabody in the early 1990s, Nick Leeson and Barings in 1995, and Yasuo Hamanaka and Sumitomo in the copper scandal of the mid 1990s.
I would maintain that due to a shortage of quality collateral in our financial system, it is highly likely that over the course of the last few years many of our large financial firms have knowingly manipulated their back offices and accounting operations. (more…)
US Supreme Court Declines to Hear Standard Investment v FINRA
Posted by Larry Doyle on January 17th, 2012 4:54 PM |
In the fall of 2009, I was asked by some Washington based attorneys if I was aware of a case known as Standard Investment Chartered v FINRA. I informed them that I did not know the case.
These attorneys shared with me information that seemed to expose that the merger of two regulators to form Wall Street’s current SRO FINRA was predicated on a proxy statement that included misinformation. I was enormously intrigued and tracked the case closely, including paying a visit into the federal courthouse in New York to observe a hearing on this case.
The crux of the case was that executives of FINRA improperly represented information in the proxy statement used for a merger of the NASD and the regulatory arm of the NYSE. (more…)
ARS Update: Lots of People Talking About Oppenheimer
Posted by Larry Doyle on January 12th, 2012 10:06 PM |
Last we checked on the ARS crisis two months back, we learned that the crowd at Oppenheimer was on pace to repay its ARS holders over the next 50 years. Yep, 50 years. How swell.
Well, one lucky Oppenheimer customer will get her money back a lot sooner than that. Who might that be? (more…)
Is This What President Obama’s ‘Change’ Looks Like?
Posted by Larry Doyle on January 12th, 2012 9:50 AM |
While driving my truck this morning and listening to Bloomberg Radio, I almost gagged on my coffee and pictured my vehicle lurching into a ditch.
What caused my knee jerk reaction? Let me set the table as to what I heard, what prompted my thinking “You have got to be kidding me”, and why I feel compelled to write this commentary today.
I believe it is a foregone conclusion that the Republican Party will critique the Obama administration for failing to bring meaningful “change” in how Washington operates. I am not so sure the Republicans should be so quick to play that card.
In a similar fashion, we already see political interests from both ends of the spectrum attacking Mitt Romney—whom I believe is the presumptive Republican nominee—and the tenets of free market capitalism embedded within private equity and venture capital. (more…)
Can Whistleblowers ‘Cross-Examine’ the SEC? Part II
Posted by Larry Doyle on January 10th, 2012 6:37 PM |
My commentary the other day entitled Can Whistleblowers ‘Cross-Examine’ the SEC? received a fair bit of attention and some rather interesting comments. In light of the very fluid developments within the realm of financial regulation, I strongly recommend that post.
The primary concern I raised within that commentary – and hence the title – was that a key panel at the upcoming 39th Annual Securities Regulation Institute consists solely of industry insiders. Why might that be such a concern?
Well, one of the main critiques of our financial regulatory system made by many, including Harry Markopolos, has been the revolving door between our regulators and the industry.
Why is a revolving door such a concern? Stick with me here. (more…)
Duncan Niederauer and “5 Guys Named Vinny”
Posted by Larry Doyle on January 9th, 2012 10:09 PM |
I had to chuckle yesterday morning when reading a comment that came in regarding my recent commentary on high frequency trading.
Eddie wrote,
Hi,
Plain and simple for years I was taught it was not only unethical but illegal to intentionally manipulate stock prices. The only intention of HFT is to do just this.Joe and Sal are correct when they say the people that are supposed to regulate this behavior are now in their pocket. For years the NYSE protected the Specialists and the public was assured that orders were being handled properly and the SEC audited the exchange and all of these firms quarterly. (more…)
Can Whistleblowers ‘Cross-Examine’ the SEC?
Posted by Larry Doyle on January 9th, 2012 7:09 AM |
Later this month, Northwestern Law will be hosting its 39th Annual Securities Regulation Institute in Coronado, California. In light of everything that has occurred on Wall Street and in Washington, one might think this could be a lively conference as it looks to provide:
A timely analysis of recent laws and developments in the corporate and securities law fields presented by senior SEC officials and leading practitioners.
While reviewing the conference invitation, I am particularly intrigued by one workshop to be held on Friday morning, January 20th. What is this workshop? Who is involved? Why am I so intrigued? Please stick with me here as we preemptively try to connect some dots.
Attention All Traders and Investors: How Are You Getting Pimped? Here’s How….
Posted by Larry Doyle on January 6th, 2012 10:17 AM |
This commentary is a little lengthy, but for those involved in the markets as a trader or an investor I believe it is a great read. Please share it. LD
The other day I received a very interesting comment and question from a regular reader and active trader. This reader’s prompt compelled me to reach out to our Sense on Cents Hall of Fame legends Joe Saluzzi and Sal Arnuk at Themis Trading for a response.
If you are an active trader or an investor, I STRONGLY recommend you read this commentary. If you merely care about our markets and economy, I also STRONGLY recommend you read it.
Is this how capitalism works now? Is this the best America has to offer in terms of free market capitalism? Excuse me while I vomit. (more…)
Fed’s White Paper on Housing: Uncle Sam a Landlord? Obama’s Plans for Re-Election?
Posted by Larry Doyle on January 5th, 2012 9:58 PM |
Housing and labor remain the cornerstones of our economy. In fact, the health of our labor market follows that of housing just like night follows day.
The near term prospects for both housing and labor remain decidedly challenging. The success of assorted federal programs to support housing so far have obviously been underwhelming.
That said, there are rumblings emanating from Washington that the Obama administration may end run Congress while unilaterally launching a massive program to support housing via Freddie/Fannie orchestrated refinancings.
Will this program be the ‘rabbit’ which Obama and team pull to prop the economy and their re-election chances in 2012? (more…)
