SEC: Where are YOUR Dead Bodies Buried?

There’s an expression in finance, “the axe on the street.” It means the firm, or the person, with the best information about a company or the way a security trades. When it comes to FINRA, the axe on the street is Larry Doyle over at Sense on Cents.

FINRA, among other activities, maintains a website that provides background information on stockbrokers. Check back on Friday, when I post more information about the site’s pros and cons. So what’s all this jazz about dead bodies? And what’s the SEC have to do with FINRA?

Hint: Mary Schapiro chairs the SEC. FINRA, where she was the boss before taking her current job, reports to her. Now there are allegations of bad behavior during her reign at FINRA. The SEC is the right organization to investigate, but Schapiro would be investigating herself. Here’s a taste of what Larry has to say:

How big was Ms. Schapiro’s lie? Upon request of Judge Rakoff during a December hearing on the actual case (Standard Investment Chartered v. FINRA), plaintiffs’ attorneys stated the lie totaled a misappropriation of funds ranging between $175 -$340 million (approximate). FINRA’s attorneys contested that statement but rather than agreeing to the document being unsealed so the truth could be exposed, the defense attorneys have waged a fierce battle to keep the document sealed.

This story has my attention. It has the attention of Bloomberg and The New York Times. In recent weeks, I’ve been fairly positive about the changes at the SEC. Their new recruits. Their success investigating Galleon. But yikes. Check out Larry’s thoughts at Sense on Cents.

Can we trust our wealth to the SEC?

Norb Vonnegut

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