The SIPA

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FINRA SUED FOR LOSING HALF BILLION,CONFLICT OF INTEREST, MADOFF AND MORE

Previously, we here at The SIPA have questioned the investment losses of FINRA and wondered out loud if they may have invested in Madoff….well we could be about to find out.  A lawsuit has been filed against FINRA by a member firm that alleges conflict of interest as well as demands the books of FINRA be opened to its member firms.  The allegations contained in this suit are nothing less then jaw dropping, but at the same time, we have been asking these same questions for nearly two years. Some incredible disclosures contained in the suit are:

  • FINRA may very well have invested in Madoff
  • FINRA misrepresented its own investments in Auction Rate Securities
  • FINRA Lost over 550 Million in one year investing in risky strategies even though the intended uses of member funds were for safety and income.
  • FINRA Blatantly failed to regulate the largest firms on Wall Street
  • FINRA paid its out going Chairwoman up to 25 million in compensation.

Instead of telling you what the lawsuit states, i thought it might be better to allow you to read the complaint in its entirety. Could this be the final nail in the coffin of FINRA as we suggested last fall?  You decide but ask yourself as you read this WHY there is no transparency in your regulator?  Do you really feel like you are being told the whole truth by your Regulator or are smoke and mirrors being used in every direction?

-click here for full complaint-

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Date
August 18th, 2009

Author
jbusacca




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