Archive for the ‘Regulatory Opinion’
Welcome to a broker’s world
Mortgage crisis hits home As the country’s mortgage crisis spirals out of control and thousands upon thousands of homeowners walk away from their under water home, I can’t help but wonder if secretly the 600,000 stockbrokers are quietly smiling inside as the rest of America gets a taste of what its like to be a [...]
A Secret NAC Agenda in Black and White
Recently members of the board of the IBDA questioned whether certain individuals had a secret agenda in supporting a candidate that was not one of their own handpicked nominees. Karen Fisher now lists hereself along with Dumb and Dumber (Davidson and Kohn) as on the Board of IBDA and questioned other peoples agenda all the [...]
Alan Davidson for FINRA Board
Erroneous policies of the Regulators, whose one size fits all approach, are eroding the business and causing our small firm saviors to shut their doors. It is the equivalent of dropping an Atom bomb on an ant. They just do not get it!
Ken Norensberg’s Petition
I wanted to thank you for the support that you have shown the team of Ken, Joel and Jed. What the Members did was unprecedented! Please sign the attached petition so that the team can continue to be informed voices on the Board of Governors. Ken’s Petition for the Board of Governors United we stand! All the best, [...]
SMALL FIRM AGENDA FALLING ON DEAF EARS
Given the fact that our highly regulated brokerage industry caused the collapse of the free markets and our economy, I don’t think we are in a position to ask that others fall under our regulation. I’m not sure we should be worrying about more Madoff scams when in fact FINRA dropped the ball on both Madoff and Sanford as well as a dozen others.
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.
One Firm One Vote
We can only do so much here and we think its important to let the candidates know how you feel instead of just beating us up. We are here to help the small firms and brokers out there and unlike other group sout there we believe in accountability and if our guys aren't living up to their word then we will find others that will.
FINRA Board Elects to Operate in Shadows
On the surface this seems reasonable to an untrained ear, however when the top ten employees are making over a million a year in base salary without any limits on their capacity to earn more, doesn’t this affect their ability to regulate as well?
“SNOOKIE” Proves our Financial Regulatory System is Broke
The message sent to Wall Streets elite firms is that if you commit securities fraud you may have to use your debit card to pay the fine and do not worry about jail time as long as you sing like a canary after your caught. Poor ‘Snooki” apparently takes her Italian heritage seriously and decided not to betray her family on Jersey Shore. Too bad she didn’t have info on Joey taking steroids to get better abs. The best part is the judge in the case lambasting Snookie.
SIPA Members Sweep FINRA Elections!
The recent FINRA Board election was nothing less then astounding considering the fact that the SIPA members faced not only strong challenges by well known FINRA nominees but by habitual board candidates that appeared to try and dilute the dissident vote as a favor for FINRA. Much to our surprise though, the members and supporters came out in droves and quite frankly the margin of victory was nothing short of astonishing.
FINRA ELECTION: A Matter of Trust
Do you trust FINRA? It’s a simple yes or no answer that is at the heart of this election. Do you believe FINRA has YOUR best interests in mind or do they cater to a certain segment of Firms? If you believe that FINRA has shown itself to be completely trust worthy, then by all means vote for their handpicked candidates.
Lacking Trust in FINRA?
Over 100 Million dollars of YOUR money was paid out to the top executives of FINRA over the last four years, yet this organization told you that the IRS would only allow a payment of $35,000 to you. While you are fighting for survival, the compensation paid to these people at FINRA has swelled to proportions that would make John Thain of Merrill Lynch fame blush.
A Tale of Two Trades
Let’s take a look at 2 brokers in 2 different offices both looking at British Petroleum for their customers for two different reasons. The first broker believes the spill is overblown and that with 64 billion in net profits the previous year and a dividend yield now approaching 9% it’s certainly worth a 10,000 share investment. The second broker believes the worst is yet to come and thinks BP could go bankrupt from this massive oil spill so he decides to take advantage for his customer who favors aggressive investing and he wants to go short 10,000 shares of BP.
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.
Gunn Allen And Investor Protections
This is either the biggest farce or the most ingenious way to bilk and abuse investors and then obtain help from FINRA in making it impossible to get redemption. It is our humble opinion that investors who were out 50 million would give anything to get a $25 million settlement right now, yet that chance has come and gone.
Current Failure To Supervise Case
“The Financial Industry Regulatory Authority (FINRA) announced today that it has fined Citigroup Global Markets, UBS Securities and Deutsche Bank Securities a total of $425,000 — and ordered the firms to make payments to customers that could total $420,000 — in connection with the firms' failure to adequately supervise communications with their customers in the initial public offering (IPO) of Vonage, LLC in May 2006.
Important Election Notice
Good Day Fellow Small Firm Members of FINRA, September 18, 2009
I am a candidate for the Small Firm seat on the National Adjudicatory Council. This is a very
Important election to you, a Small Firm Member. Why? Keep reading to find out
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."
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 [...]
And Now, For Your Consideration, The GODFATHER
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 [...]
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 [...]
Salary Caps Coming Your Way Courtesy US Treasury – WTF?
Do nothing, get what you deserve. Timothy Geithner, in his infinite wisdom, has said that he will regulate salaries at US financial institutions by placing caps on the amount that can be earned. He also says that he has the legal authority to do so. I’m calling BS. While I may rant and rave that there [...]
The Swine Flu And The Economy
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 [...]
The SEC’s Bright New Idea: Contacting Your Clients
In the wake of Madoff and other frauds, the SEC warned on March 9 that “the staff has determined that, in order to perform a valid verification of Assets, the staff must request independent confirmation of investor assets from various third parties” including your clients themselves. We can only imagine just how reassuring a call [...]
How They Got Away With It: A Must See Interview!!!
The video linked below is from Bill Moyer’s excellent reporting for the Public Broadcasting System. It is also carried on Bill Moyer’s site “Bill Moyers Journal” ( http://www.pbs.org/moyers/journal/index-flash.html ). This is investigatory journalism at it’s best – seldom seen anymore in a world of shills and corporate captured media -an interview with a star in the field, [...]
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 [...]
Dumb n Dumber
Rantings From A Confused American Is President Obama this Dumb? Or is he Dumber? The President is “outraged and shocked by the obscene bonuses AIG officials gave as bonuses to top employees” Shocked? Really? President Obama, with all due respect, you are in for a very long four years if you are this naïve. Obama, along [...]
Brokers Beware!
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 [...]
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 [...]
“Rolling Stone” Gets It Right: The Big Takeover
In what is a sign of the times, Rolling Stone Magazine has published an article by Matt Taibbi chronicling the regulatory failures and misteps that allowed for the largest financial crisis in history develop. What is sad is that this article is great, gut punching investigative reporting – the kind of reporting that the Bob [...]
“Nothing To See Here, Folks”
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 [...]
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, [...]
Will We Ever Have Transparency?
HOW FINRA PROVES ONCE AGAIN TRANSPARENCY IS A FARSE! The Sipa and its Board have been approached by various prospective candidates for the National Adjudicatory Council ( NAC) position that is available for a small firm member. In December, FINRA decided to ‘nominate’ a qualified small firm candidate named James S. Jones of Crews & [...]
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 [...]
Hedge Fund Mess Just Beginning To Come Home To Roost
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’ [...]
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 [...]
