Archive for the ‘End Of FINRA?’
SIPA Files Supreme Court Brief of Amicus on Flawed NASD Merger
The SIPA has been fighting for year to try and get owners of Broker Dealers what was rightfully theirs from the merger of NASD and NYSE regulation into the newly formed FINRA. Despite many obstacles and setbacks the case has now been sent to the Supreme Court of the United States to basically decide once [...]
UNIONS AND OIL
Some where along the way the unions went from protecting workers to intimidating them as well as our Government. I never really understood this phenomenon. GM, Ford and Chrysler have had strong unions for years and years and it afforded workers solidarity and negotiating power. That was until a guy with a high school education started making $80,000 per year to run a bolt through some sheet metal.
MEET THE METS
The decision by the Trustee is puzzling on so many levels I almost do not know where to begin so In keeping with my theme from my speech last week to Broker Dealers at the Financial Services Exchange meeting in Atlanta: Follow the money!
SIPA SUPPORTS FIDUCIARY STANDARD
AS WELL AS AN INCREASE IN COMMISSIONS Houston we have a problem. Perhaps no phrase has ever spoken more about a problem than these famous words from Apollo 13 years ago. One little problem turned into thousands of people working day and night to try and solve a ‘problem’ that eventually led to the safe [...]
Sweeping Change in Washington
The Republicans swooped into office and now everyone is expecting huge change in Washington yet your first evidence of more of the same was the speech by minority leader John Boehner on election night. Lets be realistic, this race was fueled by the phenomenal success of the Tea Party and they are the ones who energized the campaign, yet once victory was secured in comes a 21 year congressmen with a nice suit, overly tanned and full or pats on his back when in fact he offered little or no support to tea party candidates who were running under the Republican ticket.
IBDA open Letter to FINRA Board and Congress
How did we, the small business Members of FINRA with 92.7% of the Membership acquire such a contaminated Member? The answer goes back to the original formation of the NASD created as a small business buffer between the SEC, Congress and the Members.
Goldman takes one for the Team
As I read the SEC press release on Friday charging Goldman with fraud I couldn’t help but laugh and wonder if they contacted Mario Puzo and asked for advice on how to get the swirling controversy around them to subside. The fraud charges are comical at best due to the fact that one person from Goldman was named in the SEC indictment.
Coaliton of IBDA and SIPA Members Meet with Frank
Recently The SIPA has been working with Independent Broker-Dealer Association (IBDA) on regulatory reform and has supported their efforts to speak on behalf of the small firms and registered representatives face to face in front of Congress. We encourage all members to continue to support their efforts and to get active in the fight for regulatory reform that makes sense. IBDA and SIPA member Tomi Olsen has recently met with Rep. Barney Frank and enclosed is a brief recap of her work .
Time To Act Is Now!
The SIPA has been waging battles for your rights for a few years now but long before we picked up the sword and decided to run with it, others were fighting the fight. Allan Davidson is one of the original if not THE founder of the dissident movement against unfair regulation.
Things That Make You Go Hmmmmmm??
Rants and raves from the SIPA C & C music factory had a whole generation of people uttering these now famous words back in the 1990’s. As we review some of the changes that are occurring right before our eyes with the financial system, its apparent that there is more confusion then ever before instead [...]
Is FINRA’s Future in Doubt?
Larry Doyle Sense on Cents Are the days of Wall Street’s self-regulatory organization known as FINRA numbered? In the opinion of the very credible Project on Government Oversight, they should be. Why? Significant failures, massive conflicts of interest, and more. POGO’s comprehensive and scathing letter to four separate House and Senate committees touches upon every [...]
FINRA Board to Address Allegations of Schapiro Misconduct
Perhaps America will learn more about these issues soon. Why? Next week, FINRA’s Board of Directors will address alleged wrongdoings by Ms. Schapiro et al. What are the issues? Please review this release put out this morning highlighting a number of questions I have been asking for the last year.
The Truth Is In The Pudding
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”.
Protected: IBDA / SIPA Members Meet With Rep. Barney Frank
There is no excerpt because this is a protected post.
I Come to Bury FINRA, Not to Praise her
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!
We Hate To Say We Told You So..
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.
NYSE Candidate Draws Opponents Fire
My opponent, the FINRA Nominating Committee choice sent you a letter
urging your support on firm letterhead declaring his NYSE Membership to the
World. No comment of any FINRA Membership was made. Is this who he intends
to represent? NYSE firms? The FINRA selection fails to understand this is
a small firm NAC election. Perhaps he should be seeking a position with the
NYSE where his interest obviously rests.
The return on sanity?
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."
Madoff Victims Call Out FINRA
Larry Doyle Sense on Cents Is Uncle Sam, in the form of the SEC, attempting to issue a mea culpa, mea culpa, mea maxima culpa in the bungling of the Madoff investigation and trying to conveniently turn the page? The American public learned very little with the release of the SEC Inspector General David Kotz’s [...]
BROKERAGE FEES SET TO SKY ROCKET!
Effective January 1, 2010, FINRA is increasing the regulatory fees that are paid by all broker dealers. The Personnel Assessment (“PA”) is doubling. In their August 20th rule filing, FINRA explains that due to increased enforcement, rulemaking and examinations costs, they must “stabilize its revenues and provide protection against future industry downturns.” I guess losing all that money in the market took its toll on their budget, but that’s a different article.
Please do not split the Dissident vote
The marketing of the new FINRA was also very strategic for all firms. What used to be an ‘Association’ of brokers is now a ‘Regulatory Authority’. What used to be a ‘Notice to Members’ is now a ‘Regulatory Alert’. All mention of membership or ‘Self” regulation has disappeared. The only way we as small firms can make our problems heard and our needs known is through those we choose to elect as our representatives to the many FINRA arms: the District Committees, the SFAB, the NAC, and the Board of Governors, as well as the trade organizations that we choose to align with.
FINRA ELECTIONS HEAT UP
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.
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 [...]
Regulatory Overhaul?
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 [...]
NASD Knew Auction Rate Securities Weren’t Cash
By Larry Doyle Everybody knows Auction Rate Securities (ARS) were cash or cash-like, correct? FINRA certainly did NOTHING to protect investors from the ARS sales and marketing scam perpetrated on investors. FINRA spokesman Herb Perone would like to wash his hands and those of FINRA of any negligence or incompetence in regard to FINRA’s investments [...]
FINRA’s Great Gamble, With Your Money
Let’s assume you own a broker dealer. And lets also say that you have an Advisor who helps you manage your money, as most in your position would. Now - What would you say if your Investment Advisor told you that his well considered opinion is that you should take your entire portfolio and allocate [...]
FINRA Miraculously Dodges Bullet As Investors Get Hit
Linked Articles: “Was FINRA A Madoff Investor” (the SIPA) “FINRA Oversees Auction Rate Arbitrations After Exiting Market” (Bloomberg) FINRA is currently processing 344 investor arbitration cases over losses generated by the complete collapse of the Auction Rate Bond market. But FINRA itself actually had owned some $862 Million of the toxic assets prior to the [...]
Regulatory Overhaul??
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 [...]
Was FINRA A Madoff Investor?
I’m gonna start by saying that I am totally outraged the Bernie Madoff gets to go straight to jail without a long tedious exposure at trial, and I think it stinks to high heaven. And I’ve had a real difficulty understanding why auditor after auditor found nothing awry at Madoff, when a 7th grader would [...]
FOR IMMEDIATE RELEASE: COURT OF APPEALS REVIVES CLASS ACTION COMPLAINT AGAINST FINRA, MARY SCHAPIRO AND OTHERS
Release in PDF <here> Court Order in PDF <here> New York, March 18, 2009. Today, the Second Circuit Court of Appeals revived a previously dismissed class action complaint in Standard Investment Chartered Inc v. NASD, et al, Appeal # 07-3372-cv. The defendants in the suit are the NASD now known as FINRA, former FINRA CEO (and now Chair of [...]
Assertions and Facts??
Truth Is In The Eye Of The Beholder Last week the SIPA released documents that clearly contradict what NASD told member firms regarding the buy your vote sham merger of 2007. Today we release even more shocking documents that once again hit at the nerve of regulation and forces all of us in the industry [...]
What Should Be Done
The 64 Thousand Dollar Question (isn’t that quaint? $64K? Try $1.25 Quadrillion on for size… No, $64K just sounds better. Sounds manageable) nowadays is what should be done. The SIPA has polled members and has had conversations with many small firm owners compliance professionals regarding this issue. We are still a ways from a formal [...]
FINRA’s “Friendlies” Who Sold The “Sell Job” And You Down The River
One of the smaller but nevertheless interesting informational items contained in the internal FINRA documents provided to the SIPA is that the FINRA, in planning it’s “Sell Job” for the amendments which would allow the merger is that the FINRA made use of so-called “Friendlies”. These were individuals at organizations who promised support to the [...]
Wall Street: Excess, Lies And Secret Agendas
A SIPA Special Report Uncovers Deception At Every Level – And Has The Documents Which Prove It John Thain, the former head of NYSE and most recently Merrill Lynch, has resigned his position after the takeover by Bank of America was announced. Thain was is the classic face of Wall Street greed. He was hand [...]
How Madoff Got Away With It
I say “got away with it” because – were he not to have turned himself in, and were he to not have been totally broke and inches from the fire – he would probably have never turned himself in and kept going as long as he could have. Such is the nature of that particular kind [...]
FINRA’s Surveillance, Tracking And Subvervsion System For “Dissident Members”
Believe it or Not, FINRA Wants To Be Big Brother – But Not To Protect And Serve The Public Last week, we reported some very disturbing facts. And people are just starting to understand the ramifications of what was uncovered. A pattern of potential fraudulent misrepresentations, used to buy votes, to disenfranchise Membership, and to [...]
Transparency Part II
The following is shocking in any context. We do not wish to spoil, we only want the truth. With that in mind, we ask humbly that you not punish the messenger. We didn’t start the fire, as it were. But as bizaar as you may find the following, keep in mind the implications. Furthermore, prepare yourself, [...]
NY Times Reports: S.E.C. Choice Is Sued Over a Merger of Regulators
From the New York Times by STEPHEN LABATON Published in the New York Times January 11, 2009 Link to the NY Times Article WASHINGTON — Mary L. Schapiro, who appears this week at a confirmation hearing on her selection to head the Securities and Exchange Commission, has been accused in two lawsuits of making [...]
The SIPA Year in Review and Beyond
One of my favorite quotes of all time is Sherriff Brodie in Jaws backing up slowly from the eyes of a monster with a cigarette butt dangling loosely from his mouth and whispering “ WE’RE GONNA NEED A BIGGER BOAT” Can any one line better sum up 2008 on Wall Street? Wall Street and our [...]
The Unbearable Lightness Of Failure
Is It Really Possible To Fail Your Way To The Top? Something stinks. Pretty soon the new regulators (and yes, they will probably be Federal) will have to don gas masks just to go to work. Between the Bulge Bracket failures, Madoff and whatever comes next, It’s becoming embarrassing to be in the Securities Industry. [...]
The Arrogance Of Regulation
What’s that smell in this room? Didn’t you notice it, Brick? Didn’t you notice the powerful and obnoxious odor of mendacity in this room? - Big Daddy, in Cat On A Hot Tin Roof by Tennessee Williams In the rush to judgement and assign culpability (which is good and necessary) a new poster boy for [...]
Foundations Close Due To Madoff
It is truly sad that one organization was allowed to do so much damage.
POLL: Will Regulation Benefit From Mary Shapiro At Helm Of SEC?
Many members have remarked upon Ms. Shapiro’s tremendous capabilities as an administrator and leader, as well as her overall likeability factor. Others, however, have been critical of the tone and focus of her administration, as well as her handling of the events which arguably lead to the Financial Crisis. But whether because of or in spite [...]
Does A Promotion Indicate Success?
This morning we sent out an update regarding developments with Madoff and also with regard to the SEC’s admissions of failure. We intended it to go out last night, but were given pause when we saw the leak of Obama’s pending appointment of Mary Shapiro to head the SEC. We thought about adding that to [...]
“Failed” Regulation??
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 [...]
End Of Finra: Dec 12 Madoff Nails In The Coffin
Bernard Madoff. The ultimate zinger. Just say the words: Bernard Madoff -the whole room goes deathly silent. What can one say? What the hell was he thinking? At a moment when the entire world is looking for a reason to trust the US financial system, in rides Bernie Madoff. Former Chairman of the Nasdaq. Treasurer [...]
Is It Really A PONZI SCHEME If Nobody Cares?
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 End Of FINRA: Dec 5, 2008
In several articles earlier this year, we broached the unthinkable: that the End Of FINRA was potentially at hand. Since then, we have seen much in the way of de-facto re-organization, with the Bulge Bracket firms – such as they still exist – coming under direct control of the Treasury. Ironically, what this means is [...]
Walking The Greenback Mile
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 [...]
