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Mary Schapiro, Whose Pay Was Benchmarked To CEOs Of Investment Banks And The NYSE, Received A Farewell Payment From FINRA Of $8,985,334.02

Tyler Durden's picture





 

From the Amerivet Demand Committee report. Presented without much commentary (highlighting ours):

Upon her departure from FINRA, Ms. Schapiro did not receive a $25 million gift. She rather received $8,985,334.02, most of which consisted of the lump sum payment of the retirement benefits that had accrued in her favor during her thirteen year tenure with FINRA. Most of the remainder consisted of incentive compensation for 2008 to which she was contractually entitled. After taking into consideration all forms of compensation, including base salary, incentive compensation and retirement benefits, the total compensation paid to or accrued in favor of Ms. Schapiro during the relevant time period was not more than competitive with the comparable groups.

 

The Committee has determined that the compensation decisions made by the Compensation Committee and Board were made in good faith to ensure that FINRA paid its senior executives no more than reasonably required to enable FINRA to hire and retain the quality of executives needed to carry out effectively FINRA's regulatory mission. Based upon the facts summarized above, and the advice of counsel summarized herein, the Committee concludes that FINRA does not have viable claims to recover any compensation paid to FINRA's senior executives, including Ms. Schapiro, during the years 2007-2009. The Committee recommends that no such claims be asserted.

Here are the people who permitted and encouraged Schapiro's multi-million compensation over the 2006-2009 period:

And some more brilliance from the committee following the Finra fund's catastrophic performance after 2008:

After the market decline in 2008, the Compensation Committee discussed the degree to which the decline should be taken into account in determining senior management's compensation. The Compensation Committee concluded that senior management had not been rewarded as richly as their counterparts at comparable organizations during the preceding market increase, and should not therefore be penalized as severely during the downturn. Nevertheless, in light of poor economic conditions and the performance of FINRA's investments, Ms. Schapiro recommended, and the Compensation Committee agreed, that 2009 base salaries for senior management should be frozen at 2008 levels and that incentive compensation for 2008 should be 25% less than that paid for 2007.

Yet just before this we read this:

Total direct compensation for senior management fell between the 25th and 50th percentiles primarily because FINRA, unlike many of the comparable organizations for the comperisons, did not offer longer-term incentive compensation. Instead, FINRA placed increased emphasis on base salary.

In essence, Mary Schapiro made sure that the biggest component of her benefits package would be the same as during the market peak year, despite a 20%+ drop in Finra' assets.

And here is the stunner:

As comparables for the compensation of FINRA's chief executive officer and chief financial officer, Mercer used investment banking and brokerage firms with between $250 million and $5.6 billion of revenue because the pay level of CEOs and CFOs are generally related to firm size. Data for those comparable was collected from the proxy statements and other public filings of the comparison group companies and for the NYSE's chief executive officer.

In other words: Mary Schapiro, the head of the primary, and most worthless, SRO of the country, which allowed Madoff to operate for decades, was getting paid in the same comp bracket as THE NYSE CEO AND HEADS OF INVESTMENT BANKS!

And here are the details:

Mercer concluded that total direct compensation for FINRA's CEO was "very consistent among the two groups examined at both the median and 25th percentile levels." Ms. Schpairo's total cash compensation was $2.5 million, compared with the median of $2.1 million and 75th percentile of $3.3 million.

The remainder is just as nauseating. You can read the full Report of the Amerivet DEmand Committee of the Financial Industry Regulatory Authority at this link.

Artwork courtesy of William Banzai:

scha

h/t William Banzai

 


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Mon, 10/11/2010 - 14:45 | Link to Comment SheepDog-One
SheepDog-One's picture

BURN the witch!

Tue, 10/12/2010 - 09:34 | Link to Comment ED
ED's picture

What's the .02 for?

Mon, 10/11/2010 - 14:45 | Link to Comment No One
No One's picture

Payment for Services to be Rendered. Nice.

 

Mon, 10/11/2010 - 15:07 | Link to Comment bonddude
bonddude's picture

yes clearly HUSH $$$.

The epitome of a hypocrite... to say the least.

Mon, 10/11/2010 - 14:46 | Link to Comment CashCowEquity
CashCowEquity's picture

what a cunt

Mon, 10/11/2010 - 14:48 | Link to Comment Voodoo Economics
Voodoo Economics's picture

Don't jus go after her.  MERCER is the paid whore who is one of only a few "consultants" that know how to play the game and CYA all these non-profit and government officials.

Mon, 10/11/2010 - 15:06 | Link to Comment SteveNYC
SteveNYC's picture

+ Mary's salary

Mon, 10/11/2010 - 14:48 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

How dare you presume to pass judgement on one of the aristocracy.

You get above yourself, sir.

Mon, 10/11/2010 - 18:34 | Link to Comment masterinchancery
masterinchancery's picture

The whole piece is an outrage--members of the ruling class, however idiotic, should never have to accept such chump change.

Mon, 10/11/2010 - 19:58 | Link to Comment BrosMacManus
BrosMacManus's picture

Frankly, I'm surprised this even saw the light of day, even under discovery. At least FINRA was/is a private corporation, so she was only enriching herself from member dues. The SEC is stocked with lifers these days, and to bring in new blood they have to compete with the private sector, where until recently a rising tide lifted all boats. Now that the tide's gone out, I'm sure the Chairwoman's union contract keeps her moored at the high water mark. FWIW, social security COLAs frozen for 2011, second year in a row; the only two times since automatic inflation adjustments were enacted in 1975.

Austerity is just for the little people. Let them eat cake, indeed.

 

Mon, 10/11/2010 - 14:52 | Link to Comment williambanzai7
williambanzai7's picture

Mon, 10/11/2010 - 15:09 | Link to Comment MsCreant
MsCreant's picture

That's really forked up William.

Fork off dude.

Fork her to hell.

Forkn' A.

Hail Mary, Motherforker, full of mace.

Mon, 10/11/2010 - 15:13 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Fork over the dough or I'll stay even longer.

Mon, 10/11/2010 - 15:22 | Link to Comment FEDbuster
FEDbuster's picture

Gives new meaning to "stick a fork in it, it's done!".

Mon, 10/11/2010 - 18:35 | Link to Comment masterinchancery
masterinchancery's picture

Let them eat cake, she'll keep the dough.

Mon, 10/11/2010 - 15:21 | Link to Comment aheady
aheady's picture

Forked up beyond all recognition.

Mon, 10/11/2010 - 15:49 | Link to Comment Miles Kendig
Miles Kendig's picture

Save the freakin' forkin' for Chez Shalom .. And remember, why bitch about how much the bartender is gettin' tipped when it is all about pay for performance

- Love Forking Rahm

Mon, 10/11/2010 - 15:43 | Link to Comment williambanzai7
williambanzai7's picture

Don't forget forked tongue (Heck Kowie Tribe)

Mon, 10/11/2010 - 16:03 | Link to Comment MsCreant
MsCreant's picture

How the Heck Kowie?

Forked!!

Mon, 10/11/2010 - 16:17 | Link to Comment williambanzai7
williambanzai7's picture

I have this whole SEC F Troop routine somewhere. Will have to did it out. They are located on F Street, and the guy they fired to be the COO of enforcement has the samename as the actor who played O'Rourke. Hence F Troop

Mon, 10/11/2010 - 16:35 | Link to Comment Miles Kendig
Miles Kendig's picture

classic

Tue, 10/12/2010 - 13:38 | Link to Comment tamboo
tamboo's picture

the pitchfork and 60's tv stuff bought to mind 'green acres'

but the mind really boggles with the possibilities;

lost in space? outer limits? gomer pyle? land of the giants?

banzai's place in the sun arriveth, woohoo!

Mon, 10/11/2010 - 21:42 | Link to Comment TomJoad
TomJoad's picture

Jump! You Forkers!

 

 

(Nice to see you MsC!)

Mon, 10/11/2010 - 23:50 | Link to Comment MsCreant
MsCreant's picture

VERY nice to see you TomJoad.

Are you on a research vessel still? I don't mean to get you in trouble here, but I do hope you are working at something interesting and doing well!

Mon, 10/11/2010 - 23:20 | Link to Comment Gary Busey
Gary Busey's picture

Oh for fork's sake!

Mon, 10/11/2010 - 14:52 | Link to Comment the not so migh...
the not so mighty maximiza's picture

That will buy you allot of girdles.

Mon, 10/11/2010 - 15:23 | Link to Comment FEDbuster
FEDbuster's picture

Bulletproof vests are more appropriate.

Mon, 10/11/2010 - 15:46 | Link to Comment Miles Kendig
Miles Kendig's picture

same same  since it is getting near time for lace up corsets to make a come back as a stealthy Dragon Skin product.

Mon, 10/11/2010 - 15:55 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

$849 on Ebay.

Just saying.

Mon, 10/11/2010 - 23:45 | Link to Comment Minion
Minion's picture

I saw some forum posts by a man who survived the Argentina hyperinflation.  One of his most spirited recommendations was to get a bullet proof vest while you still can.  Also he said a pistol is far more useful than a rifle in the real world when you have to go to work, go to the store, etc.  Funny how liberal states seem to attract the criminals........ opportunists always search for the best odds.....

Mon, 10/11/2010 - 16:01 | Link to Comment FEDbuster
FEDbuster's picture

Kevlar "Spanx"?

Mon, 10/11/2010 - 16:03 | Link to Comment MsCreant
MsCreant's picture

Think Trannie and we will get to the bottom of this...

Mon, 10/11/2010 - 16:21 | Link to Comment tip e. canoe
tip e. canoe's picture

"My, what a big fork you have, Miss."

Mon, 10/11/2010 - 16:38 | Link to Comment Miles Kendig
Miles Kendig's picture

I had thought that you were pointing that gun at a male.  Now I am not so sure...  I wonder if Mary wears a Fedora

Mon, 10/11/2010 - 16:42 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

Oops, seems they sold the Dragon Skin armor.

Someone is well prepared now.

Mon, 10/11/2010 - 16:48 | Link to Comment Miles Kendig
Miles Kendig's picture

There is Something About Mary.  Perhaps the fedora & dragon skin corset go together.

Mon, 10/11/2010 - 17:09 | Link to Comment MsCreant
MsCreant's picture

I do believe we are all on the same page now. 

Not that I wish to oppress trannies in any way by comparing them to Mary (werd out to all self respecting drag kings and drag queens, no dis meant by this). She is less convincing as a woman than most, ya gotta admit it. Drag-on skin corset might help, but that face, man...

Mon, 10/11/2010 - 18:44 | Link to Comment Miles Kendig
Miles Kendig's picture

Under pressure.  Damn.  This is the best I could do on a Mary short

http://www.youtube.com/watch?v=M2nuOneeQ5M

Tue, 10/12/2010 - 14:41 | Link to Comment Miles Kendig
Miles Kendig's picture

Hmm.  Gotta ponder that one.  Perhaps it's because I always pictured Lloyd more as Gigi's grandma .. in modern 5"ers

Reminds me of that classic Howard Beale pic of Timmay (as Dorothy Provine - kickin with the chiffon scarf and the blonde hair) and Larry (as Ethel Merman) with Ben (as Milton Berle) driving.... 

At least Lloyd could compete with Larry while I wonder about Mary.

http://www.youtube.com/watch?v=MMz-wi50ACU

Mon, 10/11/2010 - 14:54 | Link to Comment Sokhmate
Sokhmate's picture

Are Turing bombs related to the Halting Problem?

Mon, 10/11/2010 - 14:58 | Link to Comment His Dudeness
His Dudeness's picture

Violent bowel movements of Lance Armstrong, et al.

Mon, 10/11/2010 - 15:54 | Link to Comment Conrad Murray
Mon, 10/11/2010 - 14:56 | Link to Comment LeftCoastRefugee
LeftCoastRefugee's picture

Expect to see this on the front page of all the MSM any second now.....any second now........any second now

Mon, 10/11/2010 - 14:56 | Link to Comment liberal sodomy
liberal sodomy's picture

Itz a living!!!!!

Mon, 10/11/2010 - 14:59 | Link to Comment AccreditedEYE
AccreditedEYE's picture

Plenty of time to plan out multi-million pay packages and read porn all day. Our tax dollars at work....

Mon, 10/11/2010 - 15:03 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

The remainder is just as nauseating. You can read the full Report of the Amerivet DEmand Committee of the Financial Industry Regulatory Authority at this link.

Thank you Tyler. Just in time since my Parakeet's cage needs the paper changed. He likes to read while he's taking a crap. Don't we all?

Mon, 10/11/2010 - 15:28 | Link to Comment His Dudeness
His Dudeness's picture

I liked to take a crap with the window open, but one day my parakeet seized the opportunity and flew away...

How did you come to own this bird again CD? Does it also suffer from tourettes?

 

Mon, 10/11/2010 - 15:43 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Sorry. That bird you just flashed me flew over my head.

Mon, 10/11/2010 - 15:04 | Link to Comment kaiserhoff
kaiserhoff's picture

Thank god for comparable worth.  I'm less ugly than Bill Gates or Oprah, so I guess my billion dollar check is in the mail.

Mon, 10/11/2010 - 15:04 | Link to Comment SteveNYC
SteveNYC's picture

F   ucking

I   mbeciles

N  etting

R  idiculous

A  mounts of cash

Mon, 10/11/2010 - 15:52 | Link to Comment Miles Kendig
Miles Kendig's picture

Of course the

F  ucking

B  allbusting

I  mbicles

Can never figure out how all of this might be fucked up.

Mon, 10/11/2010 - 15:05 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

And I am sure because she is a dutiful civil servant she invested the monie back into Treasurie bonds.

Mon, 10/11/2010 - 15:05 | Link to Comment Genzero
Genzero's picture

And it only took 4 yrs for the suckers to catch on!

Mon, 10/11/2010 - 15:06 | Link to Comment What_Me_Worry
What_Me_Worry's picture

So does she still get to file for unemployment benefits?

Mon, 10/11/2010 - 15:26 | Link to Comment FEDbuster
FEDbuster's picture

No, but it may be a tax free payment, since she went into government service.  See Stammering Hank Paulson for details.

Mon, 10/11/2010 - 15:08 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Stories like this remind you America is a banana republic.

Mon, 10/11/2010 - 15:09 | Link to Comment Traianus Augustus
Traianus Augustus's picture

Where are the guillotines??

Mon, 10/11/2010 - 15:11 | Link to Comment chet
chet's picture

I feel like we should send her a going away present as well.  Maybe a steaming brown one in her mailbox.

Mon, 10/11/2010 - 15:13 | Link to Comment alexwest
alexwest's picture

CAGE THE BITCH... 10 YEARS MIN

ALX

Mon, 10/11/2010 - 15:13 | Link to Comment Bam_Man
Bam_Man's picture

Such is life at the apex of the RICO pyramid.

Mon, 10/11/2010 - 15:14 | Link to Comment Phat Stax
Phat Stax's picture

I want to puke.

Mon, 10/11/2010 - 15:22 | Link to Comment Gordon Freeman
Gordon Freeman's picture

It gets worse--she pulled the same scam in her previous job, and walked away with another bundle o' millions...I'll say this: the bitch knows how to negotiate (!)

Mon, 10/11/2010 - 15:29 | Link to Comment williambanzai7
williambanzai7's picture

She's the Black Widow of capital markets

Mon, 10/11/2010 - 15:24 | Link to Comment macholatte
macholatte's picture

Lot's of NOISE.

Business as usual, as usual.

Just one question: what's the incentive in the incentive compensation? Is that for doing a good job or for being better at getting paid a lot of money than someone else?

Mon, 10/11/2010 - 15:25 | Link to Comment OutLookingIn
OutLookingIn's picture

 

 Finra investigates Finra - finds no wrong doing! Yah right! Duh!

Mon, 10/11/2010 - 15:28 | Link to Comment Nihilarian
Nihilarian's picture

Opulence: Mary Shapiro has it.

Mon, 10/11/2010 - 15:34 | Link to Comment Sqworl
Sqworl's picture

Salary was approved by Bernard Madoff..nuff said.

Mon, 10/11/2010 - 16:52 | Link to Comment Miles Kendig
Miles Kendig's picture

heh Sqworl  I am sure you had a marvelous summer.  Best -

Mon, 10/11/2010 - 15:39 | Link to Comment buzzsaw99
buzzsaw99's picture

being a maggot is not gender specific.

Mon, 10/11/2010 - 15:39 | Link to Comment Vacca
Vacca's picture

The dollar will soon be worthless, and then so will her bonus.

Mon, 10/11/2010 - 15:40 | Link to Comment williambanzai7
williambanzai7's picture

Strangely it could be worse:

Mon, 10/11/2010 - 16:00 | Link to Comment Oligarchs Gone Wild
Oligarchs Gone Wild's picture

Best of the day.  Genius. 

Did you see Mary on the 60 minutes piece on HFT?  She had that look about her like she was Sarah Palin in the headlights.   All she was repeating in her head was "please don't fucking go off script, please don't fucking go off script, I have no f'ing clue what HFT is, I have no f'ing clue what HFT is".

See beyond 11:10 in http://www.cbsnews.com/video/watch/?id=6945451n

I think she was coached "use the word algorithm, it sounds important".

Mon, 10/11/2010 - 16:35 | Link to Comment williambanzai7
williambanzai7's picture

Tnx, I have to watch this later

Mon, 10/11/2010 - 23:16 | Link to Comment palmereldritch
palmereldritch's picture

High Frequency Blinking

Mon, 10/11/2010 - 17:02 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

chris, ah em ah oh yeah- cox what a sucker..

the man who fell into a dark hole one night never to be seen again.

so many minions of the prince of darkness

Mon, 10/11/2010 - 22:12 | Link to Comment williambanzai7
williambanzai7's picture

That fucker deserves to be hung by his toe nails! But then again, he is such a totally clueless airhead maybe we should just give him a free pass and hang the rodeo clown who appointed him.

Mon, 10/11/2010 - 15:47 | Link to Comment JR
JR's picture

Interesting, isn’t it, that SIRA (Securities Industry Regulatory Authority) was the original acronym for the Financial Industry Regulatory Authority (FINRA)-- the largest self-regulatory organization (SRO) in the United States created in 2007 by the merger of the National Association of Securities Dealers and the regulatory and enforcement divisions of the NYSE—but was changed to FINRA because some found “SIRA” offensive.

It seems the name was changed (check it out in the Wall Street Journal) to appease complaints that it sounded too similar to the Arabic term “Sirah,” the traditional term for biographical texts about the Prophet Muhammad. Could it be because Richard Ketchum as its then new chief executive, succeeding Mary Schapiro who had just became chairman of the Securities and Exchange Commission, is Jewish?

And contrary to belief, FINRA is not a government agency. It was created to “eliminate regulatory overlap and cost inefficiencies” in writing and enforcing rules governing the securities industry as well as enforcing federal securities laws.  It has “jurisdiction over all broker-dealers and registered representatives, and authority to discipline firms and individuals who violate the rules.

“It regulates trading in stocks, mutual funds, variable annuities, corporate bonds, and futures and options contracts on securities. It also acts as the SRO for a number of securities exchanges.”

Ketchum, who had spent 14 years at the SEC and was also a top lawyer for Citigroup before joining FINRA, has worked closely with Schapiro for many years.

When the clan protects and rewards its own with money taken from the people, we enter the final chapter in our loss of representative government. When their arrogant power is used to help each other become rich and tighten their grip on a public policy ripe with corruption, prison may not be the addendum to this chapter, but revolution.

Mon, 10/11/2010 - 16:01 | Link to Comment SteveNYC
SteveNYC's picture

Note how they regulate "education" too, make members/licensees take ridiculous exams like the Series 7 etc.

Brainwashing 101.

Mon, 10/11/2010 - 17:11 | Link to Comment Bob
Bob's picture

http://vimeo.com/6475921

No, it's NOT recycled, my fellow ZHatz!

Mon, 10/11/2010 - 19:01 | Link to Comment JR
JR's picture

As we American begin to walk into the darkness of tyranny, we can feel again a little of what those other darknesses wrought in other parts of the world, some that have occurred even during our lifetimes. Only “today,” as Zbigniew Brezinski says in this video, “it is infinitely easier to kill a million people than to control a million people,” whereas in the past “it was easier to control a million people than to kill a million people.”

This video, The Uprising, brings to mind the Ghosts of the White Night, an article by Peter Savodnik in Traveler magazine of the haunted ground of the soviet gulag, the Solovetski Islands in the frigid waters of the White Sea-- where hundreds of thousands of innocent “enemies of the revolution” were shot, starved and tortured in the 1920s and 1930s. It was the most awful killing field in the Soviet empire.

One wonders, are Americans, too, to suffer a Solovki, "the mother of the gulag," as Aleksandr Solzhenitsyn put it—singled out for their ghastly mission because of their isolation?

"A place with no connection to the world," Solzhenitsyn wrote. "A scream from here would never be heard,"

Traveler ran a double truck photo of where someone had pinned a single red rose amongst a wall of black and white commemorative photos of these virulent brave men who were tortured, starved, shot, frozen, packed into tuberculosis wards in prison barracks… because they thought the wrong thoughts and were deemed hostile to the revolution and Joseph Stalin..

A silent scream! heard nowhere.

Thanks for the website, Bob; it is powerful.

Mon, 10/11/2010 - 15:47 | Link to Comment Sqworl
Sqworl's picture

+1000

Mon, 10/11/2010 - 15:47 | Link to Comment Ricky Bobby
Ricky Bobby's picture

Chump Change - Franklin D. Raines took home 52 million from Fannie Mae 1999-2004

Mon, 10/11/2010 - 17:46 | Link to Comment drwells
drwells's picture

Don't forget the $100K per month for life that he's still stealing from us.

Mon, 10/11/2010 - 20:00 | Link to Comment tip e. canoe
tip e. canoe's picture

no shit?   wow

Mon, 10/11/2010 - 15:57 | Link to Comment fiftybagger
fiftybagger's picture

26 For what is a man profited, if he shall gain the whole world, and lose his own soul? or what shall a man give in exchange for his soul?

 

Jesus Christ

Matthew 16
King James Version

Mon, 10/11/2010 - 16:02 | Link to Comment Rodent Freikorps
Rodent Freikorps's picture

This calls for an old school quote:

Hosea 8:7

"They sow the wind and reap the whirlwind. The stalk has no head; it will produce no flour. Were it to yield grain, foreigners would swallow it up.

Mon, 10/11/2010 - 16:05 | Link to Comment Thunder Dome
Thunder Dome's picture

What a country!

Mon, 10/11/2010 - 16:54 | Link to Comment belogical
belogical's picture

Contact the white house and tell them to send her packing

http://www.whitehouse.gov/contact

 


Phone Numbers

Comments: 202-456-1111
Switchboard: 202-456-1414
FAX: 202-456-2461

Mon, 10/11/2010 - 17:25 | Link to Comment Josephine29
Josephine29's picture

This is shameful

Mon, 10/11/2010 - 17:47 | Link to Comment drwells
drwells's picture

If I believed in God, I'd ask him for nothing more than to let me live to see the day when it all burns and people like this finally run out of places to hide.

Mon, 10/11/2010 - 19:08 | Link to Comment bugs_
bugs_'s picture

The 9 million dollar Bitch, OK?

Mon, 10/11/2010 - 20:02 | Link to Comment tip e. canoe
tip e. canoe's picture

wonder if she's paying for those antidepressants she's obviously on in the 60 minutes interview or if they're covered under the gubmint health plan?

Mon, 10/11/2010 - 20:08 | Link to Comment doolittlegeorge
doolittlegeorge's picture

not ANOTHER one comitting treason.  Team McChrystal Stan's work is now going get a little OT?  Well, "a patriot's duty is never done."

Mon, 10/11/2010 - 21:43 | Link to Comment TomJoad
TomJoad's picture

never mind.

Mon, 10/11/2010 - 22:02 | Link to Comment liberal sodomy
liberal sodomy's picture

A shyster named schapiro?  What's next, a pornographer named goldstein?

Mon, 10/11/2010 - 22:30 | Link to Comment williambanzai7
williambanzai7's picture

I posted this on my Blog last October, it still holds true. Go after the deep pocketed moron.

BANZAI7 NEWS--The trustee pursuing Bernard Madoff's assets sued four more relatives of the Ponzi scheme architect Friday in a legal battle to recover at least $199 million on behalf of thousands of burned investors.

While not accusing them of knowing participation in the scam, the lawsuit charged that they "were completely derelict" in carrying out the compliance and supervisory responsibilities required by their jobs at the Madoff firm.

WB7: This sounds like a good theory for suing the morons at FINRA and the SEC. Mary Shapiro, the Chairwoman of the SEC, who was in charge of FINRA at the time, would be a good candidate. While not accusing Shapiro of knowing participation in the scam, the lawsuit could charge that she "was completely derelict" in executing the compliance and supervisory responsibilities of FINRA as they pertained to the Madoff firm.

Tue, 10/12/2010 - 00:29 | Link to Comment JR
JR's picture

It's old hat but worth repeating the Washington Post's October 31, 2009, report that “Bernard L. Madoff, the confessed swindler who pulled off the largest Ponzi scheme in history...expressed shock to the watchdog of the Securities and Exchange Commission that the agency's staff didn't discover his fraud on multiple occasions.

“'It was amazing to me’ that the SEC's enforcement investigators didn't detect the Ponzi scheme after he told them plainly suspect information, Madoff told SEC Inspector General H. David Kotz in an interview earlier this year [2009].”

On June 17, 2009, Madoff, in an interview by Kotz, said that Mary Schapiro was a "dear friend," although she "probably thinks, 'I wish I never knew this guy.'  "This was later reported to be false by Kotz, who said "there was no evidence that Mr. Madoff had a close friendship with Ms. Schapiro." (from Wapedia)

According to msnbc many of Madoff’s victims were Jewish, as are Madoff, Schapiro and SEC Inspector General David Kotz whose boss is SEC Chairman Schapiro.

Said Investment News on October 10, 2010, “Critics have hammered Finra for paying Ms. Schapiro and other managers a total of $35 million in salaries and bonuses in 2008 despite a stream of regulatory failures and $567 million in investment losses."... 

“'Nine million dollars? For a non-profit? That defies logic,' said John Busacca, owner of the Broker Dealer Exchange LLC and one of the founders of the Securities Industry Professional Association."

According to IN, “A Finra tax filing from last November showed that Schapiro received $3.26 million in 2008 — a $937,961 salary, bonus and incentive pay worth $1.75 million, and additional compensation totaling $565,995."

com/id/29651773/

http://www.whorunsgov.com/Profiles/H._David_Kotz

http://www.investmentnews.com/article/20101010/REG/310109949

Tue, 10/12/2010 - 00:32 | Link to Comment Grand Supercycle
Grand Supercycle's picture

S&P500 Financials index has not been bullish for some time. This is a warning.

http://stockmarket618.wordpress.com/2010/09/27/mon-sept-27

Fri, 02/25/2011 - 07:47 | Link to Comment george22
george22's picture

Lot's of NOISE.

Business as usual, as usual.

Just one question: what's the incentive in the incentive compensation? Is that for doing a good job or for being better at getting paid a lot of money than someone else?

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