Posts Tagged ‘sec’

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!!!

A Sign that things will get WORSE before they get better….

November 14, 2011

I am an optimist at heart.  But, I also look around and see reality.  Here is an article about the Bernie Madoff fiasco, from the Washingtomn Post, that gets my blood boiling.  And the specific quote:

“But the chairman decided not to fire the employee, because doing so “would harm the agency’s work,” SEC spokesman John Nester said.”

Would harm the agency’s work??  Are you kidding me???

How many OUTSIDE warnings did the SEC receive about Madoff??  MULTIPLE!!!

“The commission said Tuesday night that it received credible allegations about the scheme at least nine years ago and would immediately open an internal investigation to examine why it had failed to pursue them aggressively.”  (From the NYTimes)

“The doomed prophet has taken modern shape in Harry Markopolos, the Boston accountant who blew the whistle on Bernie Madoff. The SEC ignored him.”  (From Gawker)

How much does this “agency” have for a budget??  $1.19 BILLION!!!

“The $1.19 billion the committee approved fell short of the Obama administration’s request by $222.5 million.”

OK, to summarize.  Madoff STOLE from/COST investors that were supposed to be PROTECTED FROM FRAUDSTERS, like Bernie Madoff, by the SEC, BILLIONS of dollars.  And yes that was BILLIONS of dollars.  Over DECADES!!!  The SEC received CREDIBLE ALLEGATIONS about the fraud from outside observers.  The SEC did NOTHING!!  The SEC has a budget of $1.19 BILLION that comes from the fees and transaction costs associated with investing in securities.  In other words, WE (stock market investors, or ANYONE that has a 401-k retirement account, invests in mutual funds, buys stocks, etc.) are paying the budget of the SEC, so that THEY CAN PROTECT US FROM CON ARTISTS, like Bernie Madoff or Allen Stanford, etc.

AND NO ONE GETS FIRED FOR FAILING TO DO THEIR JOB, which cost some investors BILLIONS of dollars??  WHY do we need the SEC??  Eliminate the budget of the SEC.  Hey look, I just eliminated $11 BILLION from the deficit over the next ten years!!

Until people are held RESPONSIBLE for THEIR inactions or incompetence, things will continue to get WORSE.