The SIPA

Now that the figures are finally released I would like to take a moment and remind everyone that members of the original dissident group known as the Financial Industry Association (FIA) were called liars because they claimed that the merger could pay to members much more then the mere $35,000 that the NASD was offering in exchange for giving up their voting rights. In fact, the former head of NASD even said in a podcast to all members that “It just isn’t true what members of the FIA are saying”.

In Shakespeare’s Julius Caesar, Marc Antony gives the stirring eulogy that was supposed to pump up Brutus while stomping on the grave of the murdered Caesar. The opposite occurs as he delivers an impassioned speech that has the citizens mourning for the good old days of Julius Caesar’s rule. Over the years we have been a very vocal critic of FINRA policies and deservedly so in our opinion. We have even speculated that FINRA may be on the way out the door due to the failures of Wall Street’s largest firm and the Madoff debacle. Today however, we come to praise FINRA!

The SIPA has been receiving countless e-mails and phone calls from members and non members asking how they should vote. Based upon the NAC election many feel comfortable the SIPA will give them a blunt and honest assessment of the candidates. We would love to wave a magic wand and tell thousands across the country how we think they should vote but quite frankly, the SFAB is a quite confusing and mostly ineffective group

Small firm voice being heard…Board of Directors next? Stephen Kohn’s contested bid to win a seat on the FINRA National Adjudicatory Council was a smashing success for all small firms. Although FINRA does not release the actual figures, an independent poll conducted by SIPA indicated that the vote was overwhelming. The SIPA congratulates Mr. Kohn [...]

The SIPA has been granted unprecedented access to recently released and soon to be released Court documents that basically prove beyond a shadow of a doubt that members of then NASD were mislead and even deliberately lied to by the powers that be in order to obtain their vote.

Recently members of the SIPA have been sending us articles and links to various trade organizations that suddenly seem to be banging the small firm drum beat and are actually concerned for the first time ever about the Registered Rep. One in particular is aghast about the increase in assessments for firms and representatives. In an article in Investment News another trade organization is up in arms about the ridiculous increase in fees FINRA is seeking.

Kohn has to pay his own way while FINRA is using YOUR money to hire proxy services, Call Rooms, Marketing Firms and anything else they can think of in order to defeat Kohn. Why is that? What is FINRA afraid of? Perhaps it’s that Mr. Kohn will not be seduced by the powers that be? For instance, I’ll bet many of you did not know that a position on NAC pays approximately 40K per year?

A judge who finally gets it right NEW YORK – A federal judge on Monday rejected a $33 million settlement between the Securities and Exchange Commission and Bank of America Corp. over bonuses paid by Merrill Lynch. U.S. District Judge Jed Rakoff called the proposed consent judgment "inadequate." Rakoff wrote in an opinion that the $33 million settlement was a "trivial penalty for a false statement that materially infected a multi-billion-dollar merger."

Please contact us when your ready and we will point you to a PCAOB Accountant that is in your area and price range. Eventually we will be posting as a resource to all readers of BDexchange’s Newsletter and The SIPA will be posting the contact info on its site shortly. If you are one of the lucky firms that has a PCAOB Accountant that has not taken advantage of the new requirement then let us know and we would be happy to add him or her to our growing list.

The last few years we had decided to stay on the sideline and watched as the bias against small firms continued and the in fighting between small firm organizations grew. Today however, that has changed and for the first time the SIPA will be actively supporting a candidate in a FINRA election. The reason is quite simple: For the first time in almost three years we see CANDIDATES who actually get it.

On Monday August 3rd the SEC announced it was bringing charges against Bank America for fraudulently representing to shareholders that bonuses would NOT be paid to Executives of Merrill Lynch and then disbursing over 5 BILLION in bonuses simultaneously with the approval. Incredibly, BOA announced later that day that they had agreed to terms with the SEC and would pay a 33 million dollar fine to settle all charges.

SMALL FIRM SIPC TAX! How the Government is taxing small businesses Recently sticker shock had eyes popping out of their head all across America as Firm owners received their SIPC bill. For nearly 14 years the SIPC insurance cost of a brokerage firm was $150.00 flat fee paid annually. That changed dramatically for firms in [...]

A film by Francis Bush Obama STARRING! The SEC as “Luca Brasi”  * Kenneth Lewis as “Carlo Rizzi” * Hank Paulson as “Sonny Corleone” * Timothy Geitner as “Michael Corleone”   * Barney Frank as “Tom Hagen” And introducing in his first starring role! Ben Bernanke as “Don Corleone” The most awaited financial movie in [...]

Wasting Away Again In Regulatorville… Another day, another new Regulator or Czar appointed by the government.  The latest creation is the new and improved super regulator that will over see the SEC and FINRA as well as the institutions themselves.  Before we get into this latest and greatest Regulatory overhaul, I think is important to [...]

With each passing day we read and hear about the vital signs of the economy like it was a patient at a hospital on life support. Every little sign of improvement seems to be accompanied by pundit’s proclamations that the worst is behind us. Even bearish commentators like me have admitted to seeing signs of life that the economy is improving and that capital formation appears to be gaining some legs. Are we to believe that this 2000 point rally in the market as well as surging oil prices is a sign the recession is over? Well, take a deep breath and brace yourself for what I’m about to say:

How to tell when the real Bottom has occurred Lehman Brothers, Bear Stearns, AIG, Washington Mutual and Wachovia Failing, TARP programs, 4500 point Dow Drop, Housing Crash, Credit Crunch, Layoffs, Foreclosures, more Layoffs, Credit Crunch, More TARP money, Bankrupt Automakers, Government Takeovers, Pick a Ponzi, Bernie Madoff, Sanford, Harbor private funds, Wall Street Bonuses, 3 [...]

Today the Treasury Secretary began outlining his vision of a new Regulatory structure to replace the old one. This new system will save us all from another catastrophic meltdown in our financial system and make sure corruption and greed is caught early on. The SIPA response? Yadee Yadee Yadee… With all due respect, why create [...]

CYA In These Crazy Times As one of the leading voices of Registered Reps and their rights to Life, Liberty and the pursuit of higher returns, The SIPA has had an out pouring of e-mails and phone calls from Individual registered Representatives who are now being made the brunt of this cruel Bail-out Blarney.  As [...]

Sweeping The Scene Clean of Madoff’s Victim’s Blood Bernie Madoff plead guilty to 11 counts of fraud yesterday in Manhattan. While acknowledging that we are not Crime Scene investigators in New York, Vegas or Miami, the SIPA is shocked at the apparent cover up in the whole Madoff mess.  Although I’m no genius, I do consider myself [...]

How To Insult The American Public With A Smile On Your Face Today the SEC Chairman Christopher proclaimed that “ The SEC Failed to Investigate and Probe Madoff”.  (Click here to read story). While this might sound to some of you as a small act of contrition and public acknowledgement of his agency’s failings, this [...]

Why Madoff will not be an isolated case Over a year ago we questioned whether there was sufficient regulation of the Hedge Fund industry (click here to read).  In light of the Madoff Meltdown the important question brokers must be asking themselves now is not IF more regulation is necessary, but should one remove one’s clients’ [...]

The Fall of Madoff should come as no surprise. For many years now we have always thought of Ponzi schemes as something that was run out of boiler rooms in Long Island and Boca Raton that would prey on the elderly and unknowledgeable.  Today the FBI has announced that one of the most respected names [...]

The cost of corruption by our Government and the prospects for the future. On September 29th 2008 Citibank announced they were buying Wachovia Bank for a whopping $1.00 and that the Federal Government (FDIC) would provide them with up to 300 BILLION in bad debt protection. (cnn article here) The announcement caught this writer by [...]

Over a year ago many of you who receive the BDExchange newsletter may recall I speculated that 3 of the 5 top firms on the street were underwater and even went so far as to say that I truly Believe Bear Stearns and Citibank may in fact be under water.  In November of 2007 I [...]

Breaking News: For Immediate Release  GOVERNMENT CONSIDERING LEGISLATION TO BAN ALL SELLING OF STOCKS UNTIL FURTHER NOTICE:  The Federal government has announced plans to prohibit individuals and institutions from selling their stock until further notice.  “This ban on selling stocks and only allowing buy orders should result in a higher stock market by years end” [...]

In the midst of perhaps the greatest collapse in Wall Street history, FINRA is hard at work not protecting American Investors across the country, but instead is working behind the scenes to once again consolidate even more power away from small firms and place it in the hands of a few.  The SEC is currently [...]

Wall Street’s Fed Addiction The recent events on Wall Street prove once again that the Fed is nothing more then an enabler to Wall Streets addiction for constant intervention.  This ‘business as usual’ attitude is a risky and reckless bet that has not worked and in my humble opinion will not work anytime soon.  Lets [...]

Today is a very sad day on Wall Street. Lehman Brothers (LEH) has declared Bankruptcy and Merrill Lynch ( MER) has been bailed out in a fire sale to Bank of America. Two of the most well known names in Wall Street history have flamed out within a matter of moments and American investors have been shaken to their core. How could this all happen so quickly and how in the world did these two titans of Wall Street get into this mess to begin with

The Demise of Wall Street's elite firms could reshape Regulation. The sudden and shocking demise of the Wall Street elite has left an industry in shambles and the American investor in jitters. The collapse of the largest names on Wall Street is being felt all across the world and has caused the Political landscape to suddenly pay more attention to the Economy and less attention to Governor Palin's "my space page". President Bush cancelled his fund raising campaign drive and Barrack Obama is already running commercials blaming the Republicans, while lost in all this is John McCain's suggestion that "Chairman Cox should be fired for betraying the public trust and falling asleep at the wheel"