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HomeOfficial Study: The SEC and Quid Pro Quo
Posted by Larry Doyle on August 15th, 2014 9:44 AM |
“The findings of this study suggest that the SEC is influenced by considerations other than the merits of the case and raise questions regarding the effectiveness with which the agency plays its deterrence and compensation roles.”
Maria M. Correia
London Business School
The phrase “quid pro quo” is universally understood as something that is given or taken in return for something else. The actions involved are not necessarily always illegal or unethical but very often the connotation of the phrase especially when used in a political context expressly implies a form of corruption.
“On the federal level, the Hobbs Act makes it a felony for a public official to extort property under color of office. Trading campaign contributions for promises of official actions or inactions are also prohibited under the act.”
I think most people in our nation today would accept the premise that Washington politicians actively engage in practices that would fall under the heading of quid pro quo. How do they often play this game? Let’s navigate as Ms. Correia hits the Washington establishment and the SEC hard: (more…)
Helen Davis Chaitman Reviews In Bed with Wall Street
Posted by Larry Doyle on August 14th, 2014 9:16 AM |
I truly appreciate reading the thoughts of highly intelligent professionals. I appreciate even more reading the thoughts of those highly intelligent professionals who stand up and speak out in courageous fashion on the serious issues of the day.
Very few individuals with whom I have crossed paths since launching Sense on Cents in early 2009 embody these character traits more than Helen Davis Chaitman.
Helen Davis Chaitman is a nationally recognized litigator with a diverse trial practice in the areas of lender liability, bankruptcy, bank fraud, RICO, professional malpractice, trusts and estates, and white collar defense. In 1995, Ms. Chaitman was named one of the nation’s top ten litigators by the National Law Journal for a jury verdict she obtained in an accountants’ malpractice case. Since early 2009, Ms. Chaitman has been an outspoken advocate for investors in Bernard L. Madoff Investment Securities LLC. She has lobbied in Congress for statutory changes to assure Madoff investors of the protections of the Securities Investor Protection Act.
Ms. Chaitman is truly tireless in fighting for justice and recently launched the site JPMadoff to expose the relationship between JP Morgan and Bernie Madoff that facilitated the perpetration of Wall Street’s largest Ponzi scam.
I am honored that Ms. Chaitman would review my book In Bed with Wall Street. Her review is currently being widely disseminated throughout the blogosphere. I welcome sharing her thoughts here: (more…)
Book Talk: In Bed with Wall Street at New York Public Library, July 31 at 6pm
Posted by Larry Doyle on July 23rd, 2014 11:34 AM |
In late April I had the good fortune to speak to a packed house about my book In Bed with Wall Street at the Boston Public Library, the third largest library — and one of the oldest — in our nation. In early June I was pleased to regale a filled room at the Library of Congress, the largest library in the world, about the exploits and escapades of those ‘in bed with Wall Street.’
Next week I complete the trifecta of the greatest libraries in the land when I talk about my book at the New York Public Library. Details of the talk are as follows:
Thursday July 31 at 6pm
New York Public Library: Science, Industry, and Business Branch
188 Madison Avenue (at 34th Street) (more…)
SEC Whistleblower Program: Risks vs Rewards
Posted by Larry Doyle on July 22nd, 2014 7:50 AM |
If you became aware of unethical and likely illegal practices at your company, would you consider ‘blowing the whistle?’ This question is a daunting proposition filled with very real risks that should be measured against potential rewards.
Given the risks and unpleasant real life experiences of many whistleblowers on Wall Street, I firmly believe and recommended in my book that Congress should establish a privately staffed Office of Whistleblower Protection. Some may think that is overreach. I don’t. Others in much greater proximity to the ‘whistles’ would seem to share my view that blowing the whistle is a high risk proposition deserving of increased protection.
Let’s navigate. (more…)
Citi’s $7Bln Settlement: Truth and Justice Delayed Is Truth and Justice Denied
Posted by Larry Doyle on July 14th, 2014 11:40 AM |
Running down the clock used to be a strategy employed by renowned North Carolina basketball coach Dean Smith to win many a game. College basketball ultimately employed a shot clock to keep the games going.
Perhaps the Department of Justice should also have some sort of effective ‘shot clock’ imposed upon it in certain circumstances. Why so?
Just look at the announcement today (July 14, 2014) that Citigroup is paying a $7 billion fine to settle an array of egregious practices involved in transactions the firm brought from 2003 to 2008. The WSJ offers that AG Eric Holder will provide the following details: (more…)
Hot New Magazine: Unsung Heroes: Truth, Support and Free Speech for Financial Advisors
Posted by Larry Doyle on July 10th, 2014 9:08 AM |
Information is everything.
The other day a reader left a comment with the following inquiry:
I would love to join any other advisors who have issues with FINRA. I am a former CPA.PFS financial advisor with Morgan Stanley. I too went through a long and expensive FINRA process.
In addition, we filed two whistle blower cases to expose MSSB’s unfair and unethical business practices. The difference, we have over thirty thousand pages of material collected in our case, including some damning e-mails. It is time that someone stood up to these firms who apparently believe that because they have unlimited access to shareholder money, they can always get their way. Let’s come up with some ideas on how to use the legal system if we can, and social media if we cannot, to educate the public on this travesty of a business model. One that cannot even tell its’ own clients that it will “act in their best interest.”
Any takers?
I am confident there are many takers, including those who have collaborated on a new magazine entitled Unsung Heroes: Truth, Support, and Free Speech for Financial Advisors: >>>>>>>>>>>> (more…)
Will It Take Another Crisis for Real Reform?
Posted by Larry Doyle on July 9th, 2014 9:59 AM |
“Our current cronyism is not the property of one political party or the other. As with any cancer, it does not care who it attacks or where it spreads. In the process of unearthing and exposing these crony Wall Street- Washington paths, we have come to learn that large numbers from both political parties, their well-heeled financial benefactors, and many of our financial regulators, all sit on one side of the table while the general investing, consuming, and taxpaying public — along with a large percentage of Wall Street’s own employees — sit on the other.”
page 187, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy
A full 6 years from the onset of our ongoing economic crisis, I remain convinced that our nation’s markets and economy remain burdened by the cancer that metatstatized from the corrupt Wall Street-Washington dynamic.
I stated as much in my book as quoted above.
Many have asked me if the current crisis was not enough to excise this cancer what might it take. Another crisis? (more…)
Bill Isaac Embraces The Rule of Law
Posted by Larry Doyle on July 7th, 2014 10:12 AM |
The overarching theme both at this blog and in my book is the need for our nation to embrace the rule of law as the prerequisite to healing our economy and leading to better days ahead.
Flouting the rule of law is regrettably an all too common pursuit by those engaged in crony and corrupt practices. Our nation suffers badly as a result.
While all too many politicians from both sides of the aisle spout forth messages that do little more than distract, the future of our country depends on finding new leaders who care nothing for cronyism and embrace the rule of law. I personally believe that in the recent Republican House race in Virginia Dave Brat slaughtered former House Speaker Eric Cantor with this very approach.
I will keep the commentary brief today but a smile crossed my lips this morning as I read an editorial in today’s Wall Street Journal by a Sense on Cents favorite Bill Isaac. This former chair of the FDIC wrote about the manner in which Uncle Sam has abused the rule of law in the process of managing our nation’s housing finance behemoths that go by the name of Fannie and Freddie. (more…)
Journalist Sues SEC To Get Naked Short Selling Files
Posted by Larry Doyle on July 3rd, 2014 7:26 AM |
Selling counterfeit stock would seem to be a nefarious undertaking worthy of meaningful exposure.
It is.
A recent suit against the SEC under the Freedom of Information Act looks to do just that. Let’s navigate as the law offices of highly acclaimed and widely respected SEC whistleblower Gary Aguirre recently released the following statement:
Lawsuit seeks to tear down SEC’s veil of secrecy
Journalist Mark Mitchell has filed a lawsuit under the Freedom of Information Act against the Securities and Exchange Commission (SEC) to obtain the agency’s investigative files relating to more than a dozen aborted investigations and cases involving naked short selling. (more…)
Barclays Dark Pool Lawsuit and the ‘In Bed with Wall Street Conspiracy’
Posted by Larry Doyle on June 27th, 2014 9:49 AM |
The lawsuit filed by New York Attorney General Eric Schneiderman against Barclays for ‘pernicious fraud’ in the operation of its dark pool sent shock waves through Wall Street yesterday.
The equity valuations for a number of large Wall Street banks declined significantly under the premise that this lawsuit will impact their own business operations in a negative fashion.
Beyond that, though, many might think serious allegations of lying, blatant misrepresentations, fraud, self-dealing, predatory practices aka high frequency trading, investor abuse, and the like mean one thing: just another day on Wall Street.
Let’s play hardball today and navigate a little deeper. (more…)
