Andy Kessler recently published a terrific opinion piece, entitled "Galleon and the Trouble With Insider Trading". He suggested that it's impossible for investors to get a short-term trading edge. It's better to make long-term investments based on big-picture trends:

Information now travels at the speed of light. The edge...

The government is exploring expansive controls over "too big to fail" financial institutions. According to The New York Times, the House Financial Services Committee may introduce legislation this week.

The measure would make it easier for the government to seize control of troubled financial institutions, throw out management, wipe...

It's that time of year.

Costume shops are jamming as folks hunt for outfits. Twitter is buzzing with "trick or tweets" about Halloween. On Saturday little goblins will sweep through neighborhoods and fill their bags with time bombs for the waist line. The season makes me wonder:

What does it...

The bad news keeps coming at Galleon. The AMD executive who tipped inside information, according to The Wall Street Journal, was none other than the former CEO.

A criminal case filed by the Manhattan U.S. Attorney's office earlier this month alleged that an unnamed Advanced Micro Devices Inc. executive...

What can investors do when their hedge funds implode?

The Galleon scandal puts a fine point on this question. In the wake of an alleged insider trading scandal, Galleon is closing the doors of its operation which managed $3.7 billion in assets as of Friday last week.

That's one...

No doubt you've read about that sinking ship, the hedge fund formerly sailing under the banner Galleon and now taking on water. The New York Times reported that Galleon lost $30 million on one trade using insider information. Here's the quote from today's article, "In a Fraud Case, a...

Grove O'Rourke here. I've been on book tour since September 1 with Norb Vonnegut, the author of Top Producer and the guy who created me. Last Tuesday, the Financial Times printed the following commentary from Oswald Grubel, the CEO of UBS.

Separately, Mr Grubel confirmed its US wealth...

I'm Grove O'Rourke, big-swinging stockbroker and the hero of Top Producer. This post continues my series on conversations between financial advisers and their clients.

In two more weeks, I'll appear in Australia when Murdoch Books publishes Norb Vonnegut's debut novel. There's a special treat for Acrimoney's readers, who...

Grove O'Rourke here. I'm taking a break before Top Producer, the novel where I'm a good guy and a stockbroker with a boatload of troubles, ships in September. In the meantime, here's one question I'd like to discuss:

How do clients and their financial advisers build successful long-term relationships?

My name is Grove O'Rourke, and I'm a stockbroker with Sachs, Kidder, and Carnegie. You can learn more about me in Norb Vonnegut's novel, Top Producer, which is available September 2009. Today, I'm blogging for Acrimoney and standing in for Norb. He just finished the first draft of...

Judge Denny Chin sentenced Bernie Madoff to 150 years today. But the BM story is far from over. The next chapter will examine the Securities Investor Protection Corporation (SIPC). And there's one question for every American:

How can we tolerate the conflicts of interest between SIPC and court-appointed trustees?

The...

Ira Sorkin, defense attorney for Bernard Madoff, requested his client's sentence be limited to twelve years. He cited Madoff's age and thirteen-year life expectancy. He noted the crime was non-violent. And he added that Madoff surrendered voluntarily.

Sorkin asked the judge to avoid "mob vengeance." In an online report,...

What do Bernie Madoff, Ahmed Ghailani, and a captured Somali pirate have in common? They're all locked in the same New York prison. It's too bad Ghailani, Guantanamo detainee and terror suspect with alleged links to Al Qaeda, is being held in isolation. I can't help but wonder about...

There's been an important development in the fight against financial fraud. Today, The Wall Street Journal broke a story with broad implications. The Securities and Exchange Commission barred Bernard Madoff from the securities business.

We all feel safer, right?

Yeah, right.

Haven't the horses already broken from the gate?...

Today, Acrimoney is pleased to introduce Grove O'Rourke from Sachs, Kidder, and Carnegie.

Grove manages about $2 billion in total assets for wealthy families. He's seen it all inside his investment bank. He'll be joining Acrimoney for a new guest series: What Would Grove Do? As a regular on our...

Something in the refrigerator went bad. Way bad. It smells awful. I thought it was the milk. When rancid, milk is quite possibly the most foul and vile substance on the planet.

Not the problem.

I checked the broccoli. That vegetable emits ripe and fearsome odors when it spoils.

Not...

No-Money-Down Ponzi

Now, there's a new way to lose money through real estate seminars: Ponzi schemes. We've seen the late-night infomercials. We've heard the fast-talking, hyper-kinetic sales pitches.

Pitch # 1: "Buy real estate with no money down."

Pitch # 2: "Make bazillions through foreclosure investing."

Pitch # 3: "Are...

After 2008 -- the year Hurricane Excess pummeled the markets -- we're all struggling with our investments. Is anything safe? What can we trust? Who can we trust?

Today, The New York Times described the search for answers in "Time for a New Strategy". I keep hearing two words:...

If this were Hollywood, the courtroom would be jammed. Reporters everywhere. Rowdy audience. Distinguished lawyers snarling and prepping to rip each other a new one. Here's how the scene would start.

Defendant/Investor: "Your Honor, I can't pay my lawyers."

Judge: "And why is that?"

Defendant/Investor: "Clawbacks, the search for Ponzi...

• 1 part promise and 12 percent earnings, year in, year out

• 3 vats of baloney

• plenty of pork

• a yacht named "Bull," and other accouterments of great wealth a la marinara (Italian phrase meaning "sailor-style")

• 4 or 5 cups of feeder funds

• oodles of...