The Politicians Category
Wall Street takes a lot of the blame for the meltdown that started in October, 2007 and rightly so. But, don’t forget the politicians. They control the agencies that control the Wall Street marketing machine. It is no accident that Wall Street companies spend more than $300 million per year on lobbyists who make sure regulations favor the industry and not investors. This incestuous behavior has been going on for decades. Don’t expect it to go away.
By: DFree | June 28, 2010 | The Politicians, The Regulators
Before last week’s financial reform bill passed, fee-only Registered Investment Advisors (RIAs) acted as acknowledged fiduciaries. RIAs provide full disclosure to investors about how they are compensated and should have no conflicts of interest when working with investors. In other words, they look out for the investor’s needs first and foremost.
Under the new financial reform [...]
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By: DFree | June 11, 2010 | The Politicians
Wow, it never ceases to amaze me how corrupt politicians can be. The Senate is moving to keep 401k expense fees hidden from participants. Poor investors continue to get the short end of the stick.
While the government tells us that much of the new legislation on the table for financial services reform is aimed [...]
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By: Matthew Arndt, CFA, CPA, CFP | February 1, 2010 | The Politicians, The Regulators
It’s conceptually simple: take away any government protection for stockholders, management and creditors of large financial institutions to help shrink their appetite for risk-taking. For instance, in the case of the Bear Stearns debacle stockholders should have been wiped out; management should have been fired; and the bondholders should have suffered significant losses. Instead, stockholders [...]
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By: Jack Waymire | January 29, 2010 | Deceptive Sales Practices, The Politicians
I was reminded the other night, watching President Obama’s State of the Union message, that politicians and low quality financial advisors use the same deceptive sales tactics.
First, Obama told people what they wanted to hear. They wanted to lower unemployment; he will lower unemployment. They wanted economic growth; he will create growth. Financial advisors use [...]
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By: Jack Waymire | January 27, 2010 | Investor Information, The Politicians, Wall Street Ethics
There are aristocrats in the U.S., but membership in this exclusive club is not based on bloodlines, it is based on money and political power. The new aristocrats are key executives of major companies who control the money and Washington politicians who control the power. Politicians need money to gain and retain power. Executives need favorable regulations to maximize profits and bonuses. They work [...]
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By: Jack Waymire | January 27, 2010 | The Politicians, Wall Street Ethics
The politicians are incensed about the economic damage that was caused by Wall Street greed and stupidity. As ususal politicians are telling an outraged public what it wants to hear: “We will enact new regulations that will prevent this type of economic meltdown in the future.” The finance, insurance, and real estate industries contributed $85 million to federal lawmakers in the [...]
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