By: Jack WaymirecloseAuthor: Jack Waymire Name: Jack Waymire
Email: jack@paladinregistry.com
Site: http://paladinregistry.com
About: Jack writes for the InvestorWatchdog website and Worth magazine. He worked in the financial services industry from 1976 to 2004. For twenty of those years he was the president of a Registered Investment Advisory firm and a Broker/Dealer. Jack is the author of Who's Watching Your Money? The 17 Paladin Principles for Selecting a Financial Advisor and is a co-founder of PaladinRegistry.com.See Authors Posts (87) | July 17, 2009 | Investor Information, Wall Street Ethics

What we know about the financial meltdown, which started in late 2007, is that Wall Street executives took insane levels of risk to maximize their companies’ short-term profitability. A series of really stupid decisions caused the demise of big names like Bear Stearns and Lehman Brothers and the sale of Merrill Lynch to Bank of America.

Part Two of this debacle occurred when Wall Street survivors were bailed out by a new president that couldn’t afford to let them fail. Now the government wants to implement new reforms so the problems don’t repeat themselves. Based on the trillions of dollars of damage that was done to the economy and investors, is it any wonder Democrats want substantial changes in the way Wall Street does business? 

Its ironic, but Wall Street doesn’t want reforms that protect investors. It stands to reason it makes more money when there are fewer regulations. Consequently, Wall Street plans to fight  reforms that benefit investors every step of the way. The very same investors by the way who, as taxpayers, picked up the tab for bailouts that allowed many of the most mis-managed financial services companies to survive.

Don’t under-estimate Wall Street’s commitment to self-preservation and seven, eight, and nine figure incomes. Financial services companies have spent hundreds of millions of dollars on lobbyists for decades to make sure current and future regulations benefit companies and not investors.

What hypocrisy!   These are the same companies that produce warm, fuzzy advertisements that stress their trustworthiness when they ask you to buy their  products and services. They employ personable advisors who tell you what you want to hear. Then they have you sign 30 page agreements that limit their responsibility and liability for what they sold you.

Wall Street gets away with its self-serving business practices because they have bought the votes of key politicians and millions of investors feel powerless in a system that is dominated by special interests.

The last thing Wall Street wants is educated investors and a level playing field.