The Derivative Project

SEC

Flash Crash Update and Background Information for Senator Levin’s Hearing

Flash Crash Update and Background Information for Senator Levin’s Hearing

Senator Carl Levin will hold a hearing on June 17th to examine the impact of conflicts on consumer confidence. “The panel will focus on how brokers balance the obligation to give customers best execution against services they provide for other brokers and trading venues”, according to the statement. We reported…

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…

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…

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…

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…