The SEC's enforcement of the fiduciary duty under the Investment Advisers Act has been long on disclosure and short on real avoidance of conflicts.
Carly Fiorina has a big problem with the truth. More specifically, she has a problem with embellishing the truth, in a manner very reminiscent of disgraced NBC anchor Brian Williams. In what is becoming a pattern, Fiorina takes what is true, and adds made-up embellishments (lies) to it, for dramatic effect.
Over the last few years, a number of exchanges and dark pools emerged claiming that their businesses will exclude high-frequency traders (HFTs) detrimental to institutional investors. Almost invariably, the HFTs in question happened to be the so-called Aggressive HFTs.
Those who wonder what the hell is going on with the accelerating number of startups getting billion-dollar valuations and above, please raise MY hand.
The first thing we must note in fairness to Citigroup is that although it agreed to pay $180 million, it didn't admit it had done anything wrong. All it admitted was that the SEC had jurisdiction over the bank and "the subject matter of these proceedings."
The financial services industry is choosing up sides in an epic battle over what new regulations should be created to protect individual investors. The SEC, which has the overall responsibility of protecting investors, has been dithering about offering new rules.
I cannot stand by when a company like Herbalife has the audacity to publicly proclaim they provide opportunities for Latinas -- neglecting to mention that it is under investigation by the SEC, the FTC and multiple state Attorneys General for intentionally targeting and scamming Hispanic customers.
Let's not pop the Prosecco just yet. Another SEC rule being debated now would effectively endorse the root cause of excessive CEO pay -- the practice of paying CEOs based on the company's stock price.
U.S. regulators have recently questioned the role that high-frequency trading (HFT) plays in the bond market. The latest research from AbleMarkets studies a subclass of HFTs known as aggressive HFT. The research shows that:
Public Citizen and allies will focus on the needed rules. We shall reload from the thesaurus with sharp words, biting sarcasm, and crushing calumny to continue our bullying ways. That is, unless Wall Street wants to give up and accept reform meant to stop its bullying of the American people.
The SEC has a straightforward mission to protect investors: It must make sure that companies selling securities to investors tell the truth about their businesses, the securities they sell, and the risks involved.
On this fifth anniversary of the Dodd-Frank Act, I wish I was writing a congratulatory letter to all the regulatory agencies in Washington, D.C. for its successful implementation. Instead, I'm expressing the frustration of millions of working families who believe there is a lot of work still to be to done to rein in Wall Street excess.
Five years ago, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) was signed into law. Nevertheless, sections of the law still remain to be implemented because of delays in enacting regulations.
Many people who want to invest in startups, real estate crowdfunding projects, and other privately placed investment vehicles are surprised to learn that these opportunities are typically only open to accredited investors.
From the libertarian praise heaped upon these regulators, and from their own statements, it appears that they are big fans of deregulation. These men are charged with creating and enforcing the financial rules of the road, but they are anti-rule.
SEC Commissioner Michael Piwowar, said in a speech to Cato recently that the goal of the SEC should not be to "promote investor confidence," but instead to "promote investor skepticism." This is a scary example of a radically libertarian philosophy that could cause our financial system to melt down in a big way.