The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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2/25/2009
New FINRA Chief Brings the Tough Talk
2/09/2009
Sometimes it Pays For Brokers to Litigate with the Feds
A Look at Obama's New SEC Chief
FINRA Slaps former SAMCO Brokers
Major Exchanges Agree to Tighten Regulations
SocGen Chief Probed on Rogue Trading
11/12/2007
Investors: FINRA Loves You!
New FINRA Chief Brings the Tough Talk
What is Richard Ketchum seeking? A broader mandate, a closer working relationship with the SEC and no more stovepipes... Keep reading.
-- MDT
-- MDT
Labels: FINRA, R. Allen Stanford, Richard Ketchum
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Sometimes it Pays For Brokers to Litigate with the Feds
According to this recently updated study from Sutherland Asbill & Brennan, if you're willing to put the time in to challenge an SEC / FINRA disciplinary action - 8 to 15 months potentially - your brokerage firm could stand a good chance of seeing substantially reduced penalties and even have a decent shot at a dismissal.
Sutherland partner and study co-author, Brian Rubin, characterized the findings thusly, "...these studies should make firms and individuals think long and hard before they settle. In today's environment, with Congress and the public looking for blood, I think the regulators are going to ratchet up penalties and fines. If they do, it will make more sense than ever to carefully evaluate whether to settle."
Provided you're not stone guilty, of course - and provided you've got the right counsel. Make that any counsel. Those that went into proceedings without were 0-for-16 from January 2006 through December 2007. And one has to imagine that the odds aren't going to be getting better with the regulatory sea change brought about by the change in administrations.
You can check out the full Sutherland study right here.
--MDT
1/21/2009
Sutherland partner and study co-author, Brian Rubin, characterized the findings thusly, "...these studies should make firms and individuals think long and hard before they settle. In today's environment, with Congress and the public looking for blood, I think the regulators are going to ratchet up penalties and fines. If they do, it will make more sense than ever to carefully evaluate whether to settle."
Provided you're not stone guilty, of course - and provided you've got the right counsel. Make that any counsel. Those that went into proceedings without were 0-for-16 from January 2006 through December 2007. And one has to imagine that the odds aren't going to be getting better with the regulatory sea change brought about by the change in administrations.
You can check out the full Sutherland study right here.
--MDT
A Look at Obama's New SEC Chief
Check out this profile of Mary Sharpiro from Steven Pearlstein at the Washington Post. He is not entirely optimistic. Then again, the folks at her last post are feeling a bit defensive at the moment.
-- MDT
9/04/2008
-- MDT
Labels: FINRA, Mary Shapiro, SEC
FINRA Slaps former SAMCO Brokers
A first strike on mortgage backed securities enforcement...
-- MDT
8/13/2008
-- MDT
Labels: FINRA, mortgage backed securities, SAMCO
Major Exchanges Agree to Tighten Regulations
In order "to strengthen investor protection by consolidating the surveillance, investigation and enforcement of insider trading in equity securities."
Get the details at MarketWatch.
-- MDT
4/15/2008
Get the details at MarketWatch.
-- MDT
SocGen Chief Probed on Rogue Trading
While former trader Jerome Kerviel is a free man, the trouble for his former employer may be just starting. Chief executive, Daniel Bouton is being probed by the French parliament (though Bouton himself has been touting a brighter side). If you feel like you need a re-cap on the whole SocGen affair, try this newly published Fortune article, which provides a fine summary.
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Meanwhile, stateside, FINRA issues new guidelines to prevent further Kerviel-style rogue trading. Good thing too, as a newly released report from the Association for Financial Professionals indicates that, while the scale may be somewhat smaller, fraud is hardly a problem unique to SocGen. Then again, maybe it's just hormones.
-- MDT
Labels: Daniel Bouton, FINRA, Jerome Kerviel, Societe Generale
2 Comments.
HI Michael,
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
I still have a problem with the use of the word fraud and "rogue trader" when neither Kerviel at Soc Gen nor Dudley at MF Global were ever going to be able to keep any money for themselves. They were just trying to repair or enhance their reputation with their firms within a very lax control environment. They were taught by their mentors that this is how you can do it.
Hi Francine,
Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
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Good to hear from you and thank you for your thoughts. I take your point, but wouldn't Kerviel have been bonused relative to his successful trading?
Even if Kerviel stood to gan nothing, I think "rogue" applies well enough to someone who thwarted internal controls, lax though the may have been, to enact trades, irrespective of the motive behind the act.
That asidee, your comment definitely speaks to why some have related to Kerviel as more Robin Hood than robber and to why he's not currently cooling his heels in a French jail under more serious charges.
Take care,
-- MDT
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Investors: FINRA Loves You!
And the folks formerly known as the NASD are launching a multi-million dollar ad campaign to prove it!
-- MDT
-- MDT
