The Derivative Project

Bona Fide Financial Education

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…

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…

New Retirement Service Eliminates Conflicted Financial Advice and Poorly Performing 401(k)/403(b) Investment Options

Announcing Not On My Nickel New Retirement Service Eliminates Conflicted Financial Advice and Poorly Performing 401(k)/403(B) Plan and IRA Investment Options Not On My Nickel, a research and education service for retirement savers refuses to wait for Washington to fix the retirement system and financial advice industry’s misconduct.  Not On My…

The Fiduciary Debate is But A Sideshow: The Underlying Question is Capitalism or Dependency?

The continuing debate in Congress, the SEC and the Department of Labor on who is and who is not a fiduciary to American’s retirement savers is but a sideshow.  The retirement crisis, can be traced in part to the conflicted role of the middleman advisor, which can be summarized by…

Why Financial Literacy Efforts Failed: Wall Street Wrote the Curriculum and Spread the Message with the help of Public Radio

Experts are baffled by why all the tax dollars and private money flowing into K-12 Curriculum and private foundation support has failed to make a dent in American’s financial literacy score. Here is brief synopsis at CNBC, June 4, 2013, Financial Literacy Efforts Get Failing Grade. With a focus on…

Attention Retirement Savers: Time for Immediate Demand for Alternative to Money Market Funds and Your “Voluntary Recapture” from Wall Street

Today is Labor Day or a time to celebrate the economic and social contributions of our nation’s workers.  Take a look at this as we celebrate. Schwab’s Retirement Advantage Money Market Fund Fine Print or Why Retirement Savers will Never Get Ahead   Here is an excerpt from Schwab’s SWIXX…

Material Conflicts, Lack of Training, Lack of Transparency Are at Heart of Financial Crisis

Floyd Norris of the New York Times has a piece today on the Barclay’s “Libor scandal”, Banks Ability to Rig Libor Shows a Change is Needed.  The premise of the piece is excellent, however, Mr. Norris and The New York Times, continue to rely on a circle of sources for…

Raise Your Hand if You Think Your Retirement Adviser is Giving Advice to Help You Retire

Yes, every hand went up in the U.S.  Every retirement saver thinks that someone who is “registered” by FINRA or the SEC has been trained and vetted and is acting in their best interest when one provides them advice for their retirement savings. Attention retirement savers! There is a quiet…

Introducing the Goldman Syndrome – Review of B. U. Professor Bodie’s Book: Why Academics and Industry Blame Investors for 2008 Retirement Losses

The Derivative Project is introducing a new term, in honor of ex-Goldman Director Greg Smith, “the Goldman Syndrome.” The Goldman Syndrome:  It is a situation when Wall Street does not act in the best interests of its clients, despite being “fiduciaries”.  It is defined as a circumstance when Wall Street…

Why Goldman’s Equity Derivative Director’s Departure Statements Can No Longer Be Ignored by SEC and Congress

Goldman Sach’s Executive Director of Equity Derivatives and head of the Firm’s equity derivative business reported in an Op-Ed piece today, March 9 Letter to Chairwoman Shapiro by The Derivative Project. Mandated training on equity derivatives for every SEC registered investment advisor is woefully long-overdue, but it must also accompany a strict…