PSSSSSSSSSSSSTTTTT. Quiet. “You know that insider trading case against Galleon Group and Raj Rajaratnam?” (say that ten times fast) Drum roll please: a whistleblower is behind it. Yep. Shocked I bet. Rajaratnam who had a bevy of connections, likely thought he had everyone fooled. Nope, he missed someone – someone he underestimated. Someone now who,… Continue Reading
Monthly Archives: February 2011
Jules Kroll and Son Bring Corporate Sleuthing To Rating Agencies
Posted in Banks and Financial ServicesMr. Kroll, as always part showman, part genius, says he “will be looking under the covers” in addition to the numbers. That should be interesting (think Mark Hurd of HP and other corporate titans brought down by sex scandals). But the key will not be what happens under the covers. No, the key is independence.
Tea Party Budget Cuts Hinder Enforcement at the CFTC in Favor of Wall Street Shenanigans
Posted in Consumer ProtectionThe CFTC needs more money, a lot more money to fulfill its responsibilities. A little bit of regulation can go a long way toward safer markets and stability for main street.
Charles Ferguson, Producer of Oscar-Nominated Documentary “Inside Job”, Predicts A Second Economic Crisis Is Only A Decade Away
Posted in Consumer ProtectionThe confluence of budget cuts to regulators like the SEC and CFTC, which were no Batman and Robin even at full strength, coupled with a likely skeleton staff at the new consumer finance protection agency spells disaster sooner rather than later.
David Becker of the SEC: Irving Picard’s Most Recent Attempt to Claw Back Funds From Innocent Investors
Posted in In the CourtsDavid Becker is a longstanding public servant who has served his country with great distinction and honesty. And if you think that the SEC can be influenced by a $1.5 million dollar investment, you might want to check your backyard for Martian tracks.
Whistleblower Michael G. Winston Defeats Countrywide and Bank of America
Posted in WhistleblowersBut the story has a happy ending. In a jury trial against Countrywide and Bank of America, Michael Winston prevails and the jury awards him $3.8 million.
Madoff Finally Speaks: JPMorgan Chase “Must Have Known of My Fraud”
Posted in Banks and Financial ServicesNevertheless, despite my utter disdain for Mr. Madoff, and obvious mistrust for this miscreant, his words on this issue – fraud – must be given some weight. He is by any estimation an expert on the subject. Wouldn’t it be wonderful to see Mr. Madoff put on the stand by Mr. Picard at a trial of JPMorgan Chase?
Congratulations and Farewell to Neil Barofsky; Special Inspector General of the TARP
Posted in Banks and Financial ServicesBarofsky serves as a model for the kind of person needed when the government gets in the business of giving away taxpayer money and lots of it: someone who has the character and credibility to be taken seriously and who will work doggedly to protect our money.
Frank Rich of the New York Times Is Right on Point (JP Morgan Chase Rides Safely into the Sunset)
Posted in Banks and Financial ServicesThis past Sunday Frank Rich highlighted that Chase bankers way back in 2007, eighteen months before Madoff’s arrest, were discussing “a well-known cloud” over Madoff, including speculation that he was “part of a Ponzi scheme.” Despite these concerns, Madoff continued to funnel billions of dollars of his clients’ money through Chase accounts while the bank carefully divested itself of $241 million of its $276 million in Madoff investments. Nice guys.
Wall Street Ignores the Spirit of the Law – Investor Interests Take a Back Seat to Personal Profits
Posted in Consumer ProtectionHedging is a common and financially wise move when betting on the fluctuation of the markets. However, Goldman executives, as reported in the Times, have been hedging against their own company, placing bets on the stock’s stagnation, limiting risk associated with plunges in stock value, and even betting against quick growth.
Guest Blogger Jeff Goldberg Breaks Down Vermont’s Single Payer Plan
Posted in Weekend EditionVote against it and they put the lie to their states rights, small fed principles. Vote yea and approve a state plan that will drain insurance company profits, offer true universal coverage, control costs (at least according to Hsiao who claims single-payer will reduce Vermont’s health care tab by ten percent or more per year) and serve as a test case for single-payer at the national level.
Person of the Week: Harry Markopolos and His Whistleblowers
Posted in WhistleblowersWhistleblower provisions offer incentives for informed citizens to come forward. Without these provisions it is likely that the states of California and Virginia would still find themselves in the dark concerning this fraud while Wall Street bankers quietly sweep millions from public pension funds into their own back pockets.
JPMorgan Chase: A Madoff Timeline Provides Compelling Evidence of the Bank’s Culpability
Posted in Banks and Financial ServicesClaims against banks like JP Morgan Chase for aiding and abetting are difficult to be sure. Irving Picard, the Madoff trustee, is pursuing such a claim against JPMorgan Chase. My firm is involved in several similar cases. We seek only to hold banks accountable for their willful ignorance.
Here We Go Again: Wall Street Pay Tops New Record: $135 Billion
Posted in Consumer ProtectionJust when we thought maybe, just maybe, greed would take a back seat to long term value and prudent compensation that incentivizes sound risk taking, the WSJ reports that pay at public companies on Wall Street will reach a new record: $135 billion. Wow.