Sense on Cents

I highlighted back in mid-January the need to Let’s Really Question Ms. Schapiro.  Now the chair of the SEC, Ms. Schapiro headed Finra and saw cases filed and fines collected decline by an estimated 35%.  I was trying to make the case that Ms. Schapiro was nothing more than a warden growing vegetables in the same garden as the prisoners, given that Finra invested in hedge funds, fund of funds, private equity, and Auction Rate Preferred Securities.  These ARPS were a scam perpetrated by Wall Street on clients. The bonds were marketed as cash surrogates with regularly scheduled auctions. When the auctions “failed,” the clients were left holding the bag in the form of the long term securities that ARPS truly are. OUCH!!

There are numerous individual customers still stuck with ARPS. I have spoken with an individual in my hometown, trying to help him publicize his case so that he can be made whole by a major bank that sold him the bonds.  (more…)