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HomeSenate Investigation of High Frequency Trading: Will We Learn Anything?
Posted by Larry Doyle on June 17th, 2014 8:58 AM |
The United States Senate Permanent Subcommittee on Investigations is holding a hearing today to “examine conflicts of interest, investor loss of confidence, and high speed trading in U.S. stock markets.”
The hearing will focus on two specific conflicts of interest: payments by wholesale broker-dealers to retail brokers for their customer orders, known as “payment for order flow;” and “maker-taker” rebates or fees that, depending on the circumstances, exchanges either pay or charge to brokers for executing trades on their platforms.
While I hope that some meaningful discussion might expose some of the crony, if not corrupt, practices within our markets, if past is prologue I am prepared to be underwhelmed. Why so? (more…)
Uncle Sam Wants Names of VA Whistleblowers; POGO Protects Identities
Posted by Larry Doyle on June 16th, 2014 9:05 AM |
You do not need to read my blog to know the Veterans Administration has some serious issues that have impacted the health and well being of countless veterans. These issues are not new developments.
Very simply, the failures within the VA are due to a government that is badly mismanaged and often engaged in practices that are fraudulent, if not totally corrupt.
The VA has not only failed countless numbers of veterans but, in adding insult to injury, it has punished those internally who have tried to do the right thing. How so?
Whistleblowers who have brought attention to the fraud and corruption within the VA have not been embraced but rather ignored, intimidated, and often fired. As we well know, mismanagement, fraud, and corruption much prefer the cover of darkness than the light of transparency. (more…)
The IRS Scandal: “That’s a Lie”
Posted by Larry Doyle on June 14th, 2014 9:36 AM |
Saturday morning in America.
Should be a great day and a beautiful weekend with plenty of sports activity to captivate fans and fathers in the crowd. In the process of making the most of the weekend, though, let’s not lose sight of the fact that our nation remains under assault both from without and within.
As a father, I am very concerned for the future of this country. While I am concerned about the threat of terrorism and our fiscal condition among many other issues, my greatest concern actually centers on the lack of moral fiber and true leadership that are integral to the ongoing degradation of the rule of law in America.
Why so concerned — er, actually pissed off — on a beautiful Saturday morning? I am insulted, and hope you are as well, that we are forced to swallow such a line of horse$&it that e-mails within the IRS were lost because a computer crashed. This crock might only be compared to the junior high excuse that my dog ate my homework. (more…)
Sense on Cents Index of Cronyism and Corruption
Posted by Larry Doyle on June 13th, 2014 9:22 AM |
Those engaged in cronyism and corruption much prefer to operate under a cover of darkness. When transgressions due occur, those caught in the web of such practices typically like to pay a fine and quickly move on.
Given the preponderance of these practices in our current economy, I think it is a good idea that, rather than addressing cases on an individual basis, we compile an index of those involved. In doing so, we can then reflect back on them and gain a fuller appreciation for how widespread and destructive this cronyism and corruption is within our nation.
With no further adieu, I kick off the Sense on Cents Index of Cronyism and Corruption:
VA Scandal: Uncle Sam Wants Names of VA Whistleblowers; POGO Protects Identities: (June 16, 2014)
The IRS Scandal: “That’s a Lie; (June 14, 2014)
Today’s FT highlights (June 12, 2014): “Goldman Sachs and Bain Capital paid $121m to settle a lawsuit alleging they conspired with other private equity firms to fix the price of some of the biggest ever leveraged buyouts. (more…)
Spent: Looking for Change (Compelling Documentary)
Posted by Larry Doyle on June 12th, 2014 8:23 AM |
Are you aware that nearly 70 million Americans are underserved, that is effectively locked out, by traditional financial services companies? How about the fact that these underserved fellow Americans paid $89 billion — that’s right billion with a B — in interest and fees to manage their finances? What do you think of the reality that 25% of the children in America live in underbanked homes? Are you aware that almost half of all US households report that they could not come up with $2,000 in case of an emergency? Yes, almost half.
To witness some first hand accounts of people representative of so many in America struggling to make ends meet, I strongly encourage you to watch a recently released documentary that runs a little more than a half hour. I believe this film, Spent: Looking for Change, will leave a strong impression on you. It certainly did on me.
In light of the statistics shared above, there should be no real surprise why our economy continues to lag and the disconnect between Wall Street and Main Street grows ever wider. There are many reasons for these realities, but regrettably the American dream is becoming nothing more than a pipe dream for many in our nation.
What do you think?
Larry Doyle
Please order a hard copy or Kindle version of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy.
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How Are People ‘Tweeting’ Dave Brat’s Victory Over Eric Cantor?
Posted by Larry Doyle on June 11th, 2014 9:52 AM |
Twenty four hours ago, how many people who follow politics and the markets in America knew the name Dave Brat? I would guess not that many.
I will admit that, prior to last evening, I did not know Dave Brat or that there even was a Republican primary scheduled in the state of Virginia. What a difference a day makes. Talk of Dave Brat’s historic upset of Eric Cantor is now dominating the airwaves and social media. In the quintessential example of ‘David slays Goliath,’ Brat brought down Cantor after having raised a paltry sum of $231,000.
Is it appropriate to compare Brat’s victory to the throwing of tea into Boston Harbor?
While plenty of the established talking heads will look to quickly paint Brat’s victory with the standard political fare, I think — and hope — that Brat’s victory is a statement that “the system is broken.” Is Brat’s victory an indication that the established status quo in Washington should be nervous? Let’s navigate and see how folks are tweeting this monumental upset: (more…)
SEC Commissioner Stein Tells FINRA To Toughen Up
Posted by Larry Doyle on June 10th, 2014 9:38 AM |
“Speak softly but carry a big stick.”
Real leaders and financial cops very much appreciate that principle. Those playing politics and crony capitalism circa 2014 find it to be anathema.
Why is it that bad practices on Wall Street (e.g high frequency trading, abusive sales practices, market manipulation) are too often tolerated in Washington while costing ordinary Americans untold sums? Very simply, when the punishments do not fit the crimes the practices will perpetuate. The penalties become little more than a cost of doing business. Those ‘writing the tickets’ are little more than meter maids.
Those engaged in regulatory oversight might not appreciate these assertions but these realities are part and parcel of the self-regulatory model on Wall Street. To think otherwise is simply to be willfully blind. SEC commissioner Kara Stein recently told the folks at FINRA to take off their blinders. (more…)
The People v Big Finance: “This Case Is About Broken Promises” . . . . Strongly Recommended
Posted by Larry Doyle on June 9th, 2014 10:04 AM |
For those who care about free and fair markets — and the accompanying concerns about captured and corrupted regulators and politicians — a recent case filed against the major equity exchanges in our nation qualifies as an absolute must read.
This case brought on behalf of Harold R. Lanier et al against every major exchange in America including the NYSE, NASDAQ, et al centers on the ongoing debate surrounding high frequency trading within our markets.
I believe there is no doubt that those who operate within the high frequency trading arenas hope that compliant financial regulators and like-minded media will provide them the cover necessary to let the games go on. (more…)
Preparation for My Talk at the Library of Congress
Posted by Larry Doyle on June 4th, 2014 11:30 AM |
In preparation for my talk tomorrow at the Library of Congress, I thought I would gather some quotes from my book to share with those in attendance regarding shortcomings and failures within our financial regulatory system.
Some in the audience may think these quotes are evidence of meaningful corruption.
I would concur.
pg 105, Attorney Richard Greenfield
“We were able to get discovery, that is document presentation from the NASD (FINRA), very early on. Many of these documents were produced under a confidentiality order; in other words, the NASD wouldn’t produce them unless they could be kept confidential, i.e not in the public record. These documents showed unequivocally that the NASD defendants lied to the members of the NASD. Blatantly, unequivocally, you can’t put any coloration on it, you can’t say they were negligent. They intentionally lied. The lies are repeated over and over in a proxy statement. They are repeated in road shows taken all around the country.” (more…)
BOE’s Mark Carney Displays Real Leadership . . . Instant Classic
Posted by Larry Doyle on June 3rd, 2014 10:00 AM |
There is little doubt that our society and those abroad are under enormous pressure given the growing disparity between social classes and a strong sense that many of the games ongoing within our markets are rigged.
We certainly hear plenty of political pandering on these topics, but regrettably few of our supposed leaders are willing to aggressively address the systemic and structural nature of these problems. Sufficiently upsetting the status quo is not an accepted practice in our nation, so leave it to a Canadian, Mark Carney, to display the real leadership sorely lacking in America.
Carney just so happens to be the Governor for the Bank of England. He recently spoke at the Conference on Inclusive Capitalism. His remarks, Creating a Sense of the Systemic, qualify as a Sense on Cents Instant Classic: (more…)
