The Derivative Project

Regulatory Reform

Why Didn’t the SEC and Congress Investigate the Goldman/Libya Trades?

Why Didn’t the SEC and Congress Investigate the Goldman/Libya Trades?

  Reuters reported today “Libya Sues Goldman Over Losing Trades“.   No surprises here, just regrets the SEC and Congress did not do more sooner.  A billion dollar investment, that loses almost 100%, and generates more income to the “investment advisor”, than the client, is worth investigating as a fundamental…

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…

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…

SEC Chairman White Thinks a Law Degree is What is Needed to Protect Retirement Savers

In just one month since taking office,  new SEC Chairman Mary Jo White has shown her true colors: an overriding allegiance to the demands of Wall Street over the life savings of retail retirement investors. Let’s remind Chairman White over $2 trillion dollars of American’s retirement savings were needlessly lost…

Why the Debate on Fiduciary Duty is Meaningless without End to Mandatory Arbitration

Congress, the Department of Labor and the SEC are all fiercely debating if a stockbroker should act in the best interest of a retirement saver.  Based on current contract agreements an individual retirement investor signs when he opens up an IRA, any claims for losses in their IRA are subject…

Why the DOJ Must Counter Sue AIG Now

Reuters reported this week that AIG’s suit against the Federal government will receive class action status. Department of Justice, you now have no choice but to protect the U.S. taxpayer.  AIG’s credit default swaps were entered into fraudulently, since they knowingly entered into them without the financial capacity to make…

Regulatory Capture and the Critical Role of “Poverty Stricken” Consumer Advocates

The Project on Government Oversight (POGO) held a debate on their excellent recent report on the revolving door, “Dangerous Liaisons” at the SEC last week, in New York City.  At this Debate, Susan Antilla, journalist and columnist for Bloomberg, Highlighted Plight of “poverty stricken consumer advocates.” “If you look at the rulemaking information that the…