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Home“The Lack of Transparency and Accountability at FINRA Is Absurd”
Posted by Larry Doyle on December 10th, 2010 6:46 AM |
I detest those people and organizations paying mere lip service to issues needing real transparency and accountability.
I love having the voice provided by Sense on Cents so I can highlight a wide array of these issues and so people can more effectively navigate the economic landscape. I also love being able to ask the hard questions and call out those whom I think are not serving the public interest.
What else do I love? I love when a voice far stronger than my own echoes my thoughts, shares my opinion, and blasts away in pursuit of real truth, transparency, and integrity along our economic landscape.
With only a few exceptions, the media as a whole has shown itself unwilling to truly take the gloves off and go after the aforementioned ‘lip serving’ individuals and institutions. Independent watchdogs in pursuit of good government are far more aggressive.
On this note and against this backdrop, I have to admit my adrenaline picked up yesterday. How so? Let’s navigate as I was informed of the following: (more…)
Fooling Some of the People All of the Time
Posted by Larry Doyle on December 7th, 2010 9:21 AM |
Who is willing to stand up and call out the companies, the financial regulators, and others who both enabled and embodied the practices which brought about our financial crisis?
There have been and will continue to be many well written books highlighting some of the finer points from this economic period. Will there be any books written which truly take off the gloves and call out the individuals and institutions deeply involved in the ‘Wall Street-Washington incest’ central to our economic demise? One book I plan to read seems to address this very theme. I thank a regular reader of Sense on Cents for bringing David Einhorn’s Fooling Some of the People All of the Time to my attention.
To those involved in the financial industry, Einhorn needs no introduction. To those in the general public, let me inform you that David Einhorn–more than any other individual– publicly called out Lehman Bros. as a disaster waiting to happen, and well in advance of anybody saying the same. What does Einhorn have to say now? What does he address in this book? Let’s navigate. (more…)
“A Blow to Mary Schapiro”
Posted by Larry Doyle on September 24th, 2010 8:20 AM |
The battle for truth, transparency, and integrity within the ring of our economic landscape is nothing short of a 15-round heavyweight brawl. With many rabbit punches thrown by those embedded in the Wall Street-Washington incestuous relationship parried and countered by those who want the aforementioned virtues, this encounter would be great entertainment if it were not so serious and impactful on our nation’s well being. Breaking news last night clearly had the judges giving the most recent round in this pugilistic engagement to those in the transparency corner. Let’s wind the tape and get after it.
With news that both Houses of Congress have now voted to repeal the SEC’s exemption from FOIA (Freedom of Information Act) requests, our ongoing pursuit of truth, transparency, and integrity won a round — but not yet the fight — yesterday. For those unaware of this story, I will offer some highlights, add some between round commentary, AND then ask the hard hitting questions you will most assuredly not see elsewhere.
Without Freedom of Information, Who Will Keep the Regulators Honest?
Posted by Larry Doyle on September 16th, 2010 7:36 AM |
Information is everything.
Without access to information, how can we ever learn the full and true stories currently buried beneath our financial and economic landscape? Unearthing information through every means possible is a tedious — but necessary — pursuit if we are ever to learn our mistakes and failings of the past so that we can improve our economic standing in the future.
While those in Washington would maintain that they are charged with unearthing this information, there is little doubt that the American populace at large has little confidence in the rigor of that pursuit. The greatest of Jesuit principles instilled in me from my days at Holy Cross is the ‘never ending pursuit of the truth.’ That pursuit brings us today to a story which has received significant coverage here at Sense on Cents, but not nearly enough coverage elsewhere. Let’s navigate as The Wall Street Journal writes, SEC Looks to Allay Fears on FOIA Limits: (more…)
SEC Probe of Money Managers Should Also Include FINRA
Posted by Larry Doyle on September 13th, 2010 10:11 AM |
In reading a Bloomberg commentary this morning, I could not help but think that policy implementations the SEC would like to impose upon money managers also need to be imposed in retrospect upon its regulatory kin at the Financial Industry Regulatory Authority (FINRA). Let’s navigate. Bloomberg writes, SEC Probes Money Managers for Conflicts in Choosing Hedge Funds:
The U.S. Securities and Exchange Commission, stepping up its oversight of investment advisers, is examining whether asset managers that channel money to hedge funds are acting in investors’ best interest.
The agency asked money managers for information about their “due diligence” in selecting alternative investments such as hedge funds, private equity and venture-capital funds, according to a letter from the SEC’s Office of Compliance Inspections and Examinations obtained by Bloomberg News.
Longtime readers of Sense on Cents are well aware that in my reading and review of FINRA’s 2007 Annual Report (embedded in this link), I asked for information and disclosures regarding FINRA’s own internal investment portfolio. (more…)
Is FINRA’s Board Tone Deaf?
Posted by Larry Doyle on August 20th, 2010 3:15 PM |
When might a voting process with overwhelming returns be negated by the wishes and desires of the powers that be? Am I speaking of those who may occupy bully pulpits in third world nations? No, that guess would not be close.
Am I referring to political leaders who are protected by military and business minions? Nope, still quite cold.
How about a board that is more affiliated with an organization’s executives than with its members? We are getting warmer.
What about financial regulators and a board who have the reputation of being much more closely aligned with major players within the financial industry than their rank and file members and American investors at large? Bingo!!
Let’s get more specific. A week ago, FINRA’s member firms voted overwhelmingly in favor of seven non-binding proxy proposals put forth by Amerivet Securities. In light of the vote and the overwhelming results, one would have thought that FINRA’s board would have absolutely no choice but to fully address these proposals. To do otherwise, one would think that the FINRA board might run the risk of further alienating its membership while sending a message to the American public at large that transparency and disclosures are virtues this financial regulator speaks of but does not truly practice. (more…)
What Will We Learn from FINRA’s Annual Meeting on 8-12-10?
Posted by Larry Doyle on August 11th, 2010 12:20 PM |
Wall Street’s self-regulatory organization, FINRA, holds its annual meeting tomorrow inWashington D.C.. What will we learn? Will FINRA’s member firms vote for a number of non-binding proposals which would shine real light on the inner workings of this organization? America deserves to learn so much more than has ever been revealed about FINRA.
I have shared with many people that I believe the underlying tone of our markets would improve if FINRA were compelled to open its books and records. Why do I so strongly believe that? True transparency inherently breeds investor confidence. I made this very point to Joe Giannone of Reuters just the other day. Regular readers of Sense on Cents are fully aware of my feelings. Joe highlights the topics surrounding FINRA for a wider audience as he writes, FINRA Faces Calls to Lift Veil on Finances, Pay:
Wall Street regulator FINRA, which demands disclosure and openness from brokers, is under pressure to lift the veil on its own affairs.
The Financial Industry Regulatory Authority, a private corporation that regulates the nation’s 4,700 brokerages, will learns at its annual meeting on Thursday how many support a dissident’s call for more transparency. (more…)
