The Derivative Project

Academic Study Reveals Billions of Dollars Wasted on Worthless Investment Advice

The Financial Times reported in a September 21 article that a recent Oxford study revealed billions of dollars were wasted on investment advice that did not increase performance.  The article stated: “The Oxford team found these flows, and the fact that consultants tended to recommend larger funds in the first…

Rewriting History: The Side Deal and the Congressional Testimony that Gave AIG a Free Pass and Goldman $13 Billion in Cash Flow

Did A Side Deal Save All the AIG Counter Parties, Including Goldman Sachs? With all the five-year reminiscing going on about the causes of the financial crisis—there is silence on one critical topic that needs real debate by Congress and the Department of Justice, before the history book is closed. As…

Rewarding Fraudulent Contracts With Bonuses and Rationale for New Financial Crisis Inquiry

Is it Time to Reopen an Inquiry Into the Causes of the 2008 Financial Crisis? Compliments of The New York Times, we share their opinion on the statements of AIG’s CEO Benmosche yesterday: Why It is Necessary to Reopen An Inquiry into the Causes of the 2008 Financial Crisis The…

With Budget Crisis Looming, Here is an Easy $6.5 Billion to Tap to Help Those that Need Food Stamps

The Financial Times reports today (subscription required) “CFTC chair Gary Gensler warns on fund cuts to police derivatives”: “Mr Gensler’s plea for more money is a standard regulator’s lament and one that he personally has made many times over the past two years. But it comes as Congress must approve…

Washington Post Op-Ed – Are Democrats Moving Away From Wall Street?

Here is a most interesting Op-Ed from the Washington Post today, Fed Up With Wall Street, the Democrats Look to the Left.  As writer, Harold Meyerson states:   “The revolt against Summers was less about his positions on today’s economic issues than his adamant opposition to regulating derivatives during his tenure…

FINRA Survey Identifies Rampant Fraud by “Advisors”: SEC, FINRA – Look In the Mirror

The FINRA Investor Education Foundation released a September 2013 study, Financial Fraud and Susceptibility in the United States, on rampant fraud in the retail investment arena, where 1 in 4 retail investors have been subject to fraud.  The executive summary of this survey states: 1. The ubiquity of fraud solicitations, coupled…