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Posts Tagged ‘caveat emptor’

More on Municipal Malfeasance

Posted by Larry Doyle on August 15th, 2012 7:01 AM |

We should never discount the lengths to which some will go to fund a supposed immediate need via an exorbitant future expense. I highlighted specifics of just such a reality a few days back in writing Joel Thurtell Shames Poway, CA Financing.

What do others think of the financing Poway and other municipalities have undertaken? Not much. Bloomberg highlights further details of this horrendous situation in writing, California Schools Barring Taxes Push Bills to 2051,

California school districts are financing projects by pushing debt payments as far as 40 years into the future, defying a warning from the Los Angeles County treasurer while incurring interest that dwarfs principal by 10- to-1 or more.  (more…)

What Happened to the MF Global Customer Funds?

Posted by Larry Doyle on November 9th, 2011 6:59 PM |

How is that $600+ million of customer funds disappears from a bankrupt brokerage firm and it is not THE perpetual lead story in every financial periodical?

I know there is a lot going on in the world but this story blows them all away because it strikes at the very heart of our financial markets.

If customers do not have a deep faith and strong belief that their assets are segregated and protected why would any customer maintain an account with any broker? I wouldn’t.  (more…)

Auction-Rate Securities UPDATE: SEC Brief May Help ARS Investors

Posted by Larry Doyle on July 26th, 2011 8:21 AM |

37 months and counting and still thousands of Americans holding untold billions of dollars in frozen auction-rate securities await the return of THEIR money.

The question of whether the injustice of all that went on in the ARS scandal might ever truly see the light of day seems to have long since been dismissed. Regrettably that fact would seem to mitigate a full understanding of the ARS mess and minimize the lessons that may otherwise have been learned by future generations. What a shame!!

Despite these realities, the fight goes on supported by the billions of reasons that may appear to be frozen in those outstanding ARS but are very much alive.

I have always maintained that the ARS market was the greatest scam ever perpetrated on Wall Street. What is new on the ARS front? (more…)

Cambridge Place Drops Napalm on Wall Street

Posted by Larry Doyle on July 12th, 2010 7:10 AM |

To this point in our economic crisis, Wall Street and Washington have utilized the ‘perfect storm’ excuse to cover themselves from investors’ cries of negligence, incompetence, and potentially corruption. Despite those cries, America has seen few, if any, credible and comprehensive legal complaints brought on behalf of investors. Select investor suits have largely been adjudicated on behalf of the defendants, those being Wall Street banks and brokers, under the mantle that sophisticated investors are responsible for all investment analysis and live with the consequences. Will Wall Street always be accorded the cover of ‘caveat emptor’? If so, then our markets are a much riskier proposition than most investors would appreciate.

I have been surprised to this point that more investors have not filed suit against Wall Street banks for willful and wanton misrepresentation of risks in the underwriting of an array of securities. Well, I am surprised no longer as a large mortgage investor, Cambridge Place Investment Management based in Concord, MA, recently dropped a napalm bomb on Wall Street. (more…)

Indict, Prosecute, Convict the Fraudsters…Or Else!!

Posted by Larry Doyle on June 2nd, 2010 1:20 PM |

Has America lost the courage to aggressively address those who commit fraud? Is the American public even aware of the massive fraud perpetrated by those in our financial system which led to our current economic crisis? Are those in Washington willing to take a stand, risk their own skins, call out those engaged in fraud, even if some of the fraudsters occupy neighboring seats at nearby regulatory bodies?

Unless we find people in our government who are willing to make these calls, repeat them publicly in a long, loud fashion, and compel prosecutors to issue indictments, then I fear our union will pay a price and incur a cost that may be immeasurable.

Why so strong? Why so strident? (more…)

Sense on Cents Financial Reform

Posted by Larry Doyle on May 21st, 2010 9:05 AM |

In the midst of all the legislative wrangling in Washington and the financial gyrations on Wall Street, what does it all mean for everyday American investors? I am not so sure it means all that much. How much are everyday Americans impacted by proprietary trading, derivatives, merged regulators? Very little actually. I am not writing this to discount the proposed financial regulatory reform coming out of Washington, but I remain underwhelmed that it will truly protect everyday investors from the ways of Wall Street.

To this end, I am happy to propose my own Sense on Cents Financial Reforms which I believe regulators should impose on financial intermediaries (brokers, bankers, money managers, et al). I am not only proposing these reforms here, but I am sharing them today with Washington based financial regulators. In deference to my readers, you’re getting the first look. Feel free to share your thoughts on my proposed reforms, and add others which you believe should be implemented. (more…)

FRAUD!!! City of Milan Charges JP Morgan, Deutsche, and UBS

Posted by Larry Doyle on March 17th, 2010 9:33 AM |

Will Caveat Emptor once again be the order of the day as the City of Milan charges JP Morgan, Deutsche Bank, UBS, and Hypo Real Estate’s Depfa Bank unit with fraud in the sales of derivatives?

Bloomberg reports on this breaking story this morning in writing, Deutsche Bank, JP Morgan, UBS Are Charged with Derivatives Fraud:

Deutsche Bank AG, JPMorgan Chase & Co., UBS AG and Hypo Real Estate Holding AG’s Depfa Bank Plc unit were charged with fraud linked to the sale of derivatives to the City of Milan. (more…)

Brad Hintz Reviews Lehman’s Cooking

Posted by Larry Doyle on March 12th, 2010 12:00 PM |

Brad Hintz is currently an analyst at Sanford C. Bernstein, a division of Alliance Capital Management. In the 1990s, Hintz served as CFO of Lehman Bros.. As such, Hintz is well positioned to comment on the ‘cooking’ that occurred at Lehman in the midst of the economic crisis which led to Lehman’s filing bankruptcy.

How does Hintz define Lehman’s accounting? In a word, “shenanigans.”

Take a look at a brief Bloomberg video clip to get an insider’s view of the Lehman kitchen:

In the spirit of full disclosure, while looking for background material on Mr. Hintz himself, I unearthed the fact that Mr.Hintz was sanctioned by the NASD (now FINRA) for selling his own personal positions in stocks (Lehman and Morgan Stanley) while continuing to recommend them. (more…)

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