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U.S. May Lose Its Place as World's Finance Leader
- Thread starter ktmexc20
- Start date
Somewhat ironic seeing this thread whining about too much regulation right next to the "NYSE Fines Seven Specialists" threadQuote from eusdaiki:
Well on that subject... I believe that by deregulating the entry to the market [aka opening the market to anyone, not just those with a license], and making it a fully electronic venue corruption would actually go down...
I agree with both posts. It's not our fault, though. You give these crums a break on the regulatory front, and they just steal more. Insider trading, small fines for huge crimes... The only end to it is to lose the gravy, and maybe then it'll swing the other way.
The way they rationalize for any transgression is " they're all shit companies." Well, why take those big underwriting fees? New York is in deep, deep trouble, because like 1987, they are addicted to this "income" from taxes and bubbles, and when it breaks, and it will, they get creamed. Anybody remember 1975? In 1987, the most correct bear was a guy by the name of Stanley Salvigsen (sp). He came from Mother Merrill, and ran Dreyfus' Bear fund. IN 1986, he predicted the coming NYC real estate crash. Nobody believed him. He was right on. That is why in this reg debate, you'll see NYC fight like demons. Also, check and see who supports Schumer and Clinton with campaign contributions.
There is a scene in "Boiler Room" where they all pile in a bus, and I think they are on their way to some party, and the main character is wondering how, when they really don't produce anything, they all can get rich. If Wall St. started to deliver value, none of this would be a problem. But this is the kind of shit they dole out to the public on a daily basis:
2nd UPDATE: Brokerage Firm Settles 'Double-Charging' Case
DOW JONES NEWSWIRES
January 23, 2007 4:18 p.m.
or:
E*Trade Capital Markets, LLC (CRD #111528,
Chicago, Illinois) submitted a Letter of Acceptance,
Waiver and Consent in which the firm was censured
and fined $65,000. Without admitting or denying the
findings, the firm consented to the described sanctions
and to the entry of findings that it transmitted reports
to OATS that contained inaccurate, incomplete or
improperly formatted data, in that the reports contained
inaccurate Routed Order IDs that failed to link with
reportable order events an affiliate submitted. The
findings stated that the firm failed to immediately
display customer limit orders in NASDAQ securities in its
public quotation, when each such order was at a price
that would have improved the firm's bid or offer in each
such security; or when the order was priced equal to
the firm's bid or offer and the national best bid or offer
for each security and the size of the order represented
more than a de minimis change in relation to the size
associated with the firm's bid or offer in each security.
The findings also stated that the firm failed to provide
written notification disclosing to its customer that the
transaction was executed at an average price. The
findings also included that the firm contemporaneously
or partially executed customer limit orders in OTC
Bulletin Board securities after it traded each security for
its own market-making account at a price that would
have satisfied each customer's limit order
How much did they make?
Nope. They won't stop stealing. And it's a done deal the business leaves here. Maybe then they wise up. but it won't be for a while. I mean, look at the bonus pool last year. How much is enough?
Quote from Daal:
They are already committing a crime there is not need for more regulation but for better enforcement
It is actually quite amazing, but on December 5, the Chairman of the Senate Judiciary Committee accused five Branch Chiefs and the Director of Enforcement of the SEC with perjury, and the media downplayed it. What he said was " your testimony doesn 't match your written statements, and you have not heard the end of this." Arlen Spector
It is amazing to me; Levitt said it was a witchhunt. But factually, an agent went after John Mack and Art Samberg, and was fired on the heels of a two merit pay raise. He complained, was branded everything but a pervert, and dismissed. It didnt' quite work out the SEC;'s way.+
The facts are fascinating. Samberg loses half his assets, gets sloppy, hits 18 takeovers in a row, 1mm minimum, but nails the Heller deal (a double) while shorting the acquirer GE. Mack is perceived a possible tipster since they meet at opportune times, and then, Mack invests 5mm in a deal with the exact same terms as the 7bill Pequot Fund, and pulls 16.3 out in five months. The agent says, I want to talk to him, gets the oks to proceed on the Heller deal,. and is fired WHILE ON VACATION, AND AFTER A GREAT JOB PERFORMANCE REVIEW.
As it stands, it's not about Mack/Samberg anymore; it's about the Agency cover up when someone with clout is suspected.
This country's financial markets have huge problems. And you haven't heard the end of it. And everybody here who makes their living from them better take an interest. I mean, you can't settle trades in securities for two and one half years? Really.