Posts Tagged ‘federal reserve bank of new york’

Another sign that the SEC needs to ELIMINATED…

November 14, 2011

Here is another article concerning the SEC, from Zero Hedge.  I am sure that some people have heard about former Goldmanite Jon Corzine and the MF Global bankruptcy/Client fleecing.  Now we see AGAIN how incompetent the SEC is, and we will throw in the Federal Reserve Bank of New York as well.  The relevant quote:

“In order for MF Global to have attained this status it must have passed through a review by:

 1)   The New York Fed

2)   The SEC

 This is not a quick nor superficial process. According to the NY Fed’s own site:

 Upon submission of a formal application, a prospective primary dealer can expect at least six months of formal consideration by the New York Fed. That consideration may include, among other things, on-site reviews of front, middle, and back office operations, review of compliance programs and discussions with compliance and credit risk management staff, discussions with senior management about business plans, financial condition, and the ability to meet FRBNY’s business needs, review of financial information, and consultation with primary supervisors and regulators.

 MF Global passed through all of these reviews to became a primary dealer in February 2011. Today, a mere nine months later, the firm is in Chapter 11 and has admitted to stealing clients’ funds to maintain liquidity.

You read that correctly.  The SEC reviewed ALL of MF Global’s operations for 6 months.  With access to ANYTHING that is asked for.  Including the front office, the middle office and the back office!!!  Nine months later, the firm is BANKRUPT and is accused of STEALING clients money.  There was NOT new management.  There were NO major changes in ownership.  NO significant changes in anything.  And yet, 270 DAYS AFTER the firm PASSES the review by the SEC, the firm is dead!!  The review was also conducted by the Federal Reserve Bank of New York.  These are “supposed to be the smartest guys in the room”!!

Eliminate the SEC!!! 

Thanks Obama for your oversight.  I mean, YOU are the Chief Executive over the SEC.  Right??  Or were you out golfing that day??

P.S. – This is also why the Government should NOT be investing in ANY individual companies, like Solyndra!!!