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Is Mary Schapiro's Reign Of Negligent Incompetence About To End?
The Syndicate Encouraging Corruption lately has been far more busy begging for money from the Tim Geithner's gargantuan budget than performing any enforcement, analysis, or regulation, case in point today's second attempt to kill any investigation into the ML/BAC merger. We hope some Congressional or Senate committee will finally find the guts to subpoena any and all communication between BACML, or any other banks, and the SEC related to this proposed settlement, to uncover just what the SEC's motives are to fast-lane yet another case involving the endless corruption on Wall Street. Luckily Cuomo is still there to pursue the punishment of real wrongdoing, since America is now completely unable to rely on the $1 billion publicly funded organization, which, at least on paper, "works in American investors' interest"... and by American investors we assume the agency does not refer to Goldman Sachs or Bank Of America. Yet judgment day for Mary Schapiro may soon be coming. Larry Doyle at Sense on Cents notes that next week FINRA's board of directors will finally address alleged wrongdoings by Schapiro. We join Larry in asking: "Will the Board realize it ultimately needs to be accountable to ALL its
member firms and, by extension, to the American public at large? Will
the Obama administration compel the Board to provide the transparency
America so badly wants?"
A summary of the case against Schapiro is presented below. Should justice be served, the Board will find that Mary Schapiro, even more so than her clueless predecessor Chris Cox, is the most incapable person to head the investor-protection agency in the history of the SEC, and should not only be immediately fired, but should see her excessive compensation and pension benefits from her ineffectual years at FINRA be clawed back with extreme prejudice.
FINRA BOARD TO CONSIDER ALLEGED WRONGDOING BY FORMER CHAIR MARY SCHAPIRO AND HER COLLEAGUES
Feb. 10 Closed Door Board Meeting to Consider Broker-Dealer’s Allegations
WASHINGTON, DC, February 4 — On February 10, 2010, the Board of
Governors of the Financial Industry Regulatory Authority, Inc.
(“FINRA”) will consider allegations of gross mismanagement set forth in
a December 4, 2009 letter to the Board on behalf of Amerivet
Securities, Inc. (“Amerivet”), a member of FINRA.The letter demands that FINRA take action against Mary Schapiro and
other senior FINRA executives to recover excessive compensation and
unprecedented portfolio losses stemming from FINRA’s dismal 2008
regulatory and investment performance. In 2008, Ms. Schapiro’s last
year as FINRA chair, that organization:Failed to act against Bernard Madoff and Robert Allen Stanford, who perpetrated two of the largest Ponzi schemes in history;
Failed to act against large FINRA members Lehman Brothers, Bear
Stearns and Merrill Lynch in connection with their roles in the
subprime mortgage securities scandals;Failed to warn investors about Auction Rate Securities (ARS)
problems, after FINRA had liquidated its own ARS holdings in mid-2007,
but before the ARS market “froze” and there were any public disclosures
about the risks inherent in such “investments”;Suffered nearly $700 million in loses;
PAID ITS SENIOR EXECUTIVES NEARLY $30 MILLION.
Broker-Dealer: “Schapiro and Colleagues Bilked FINRA of Millions”
Amerivet principal, Lt. Col. Elton Johnson (U.S. Army Reserve), an Iraq War combat veteran, stated:
“Despite President Obama’s call for accountability for wrongdoing,
past and present, Mary Schapiro and her colleagues have thus far gotten
away with bilking FINRA of tens of millions of dollars in 2008, even as
that self-regulatory organization failed in its fundamental
responsibility to protect investors, and FINRA sustained nearly $700
million in financial loses. It is ironic that Mary Schapiro received a
salary more than 15 times that of a four star general, while FINRA was,
by any measure, failing miserably.”Whistleblower: FINRA “Definitely In Bed With Industry”
During his 2009 testimony, Madoff whistleblower Harry Markopolos
told Congress that FINRA is “definitely in bed with the industry” and
“[gets] an A+ for corruption.” Separately, a report from SEC Inspector
General David Kotz quotes Bernard Madoff as referring to Ms. Schapiro
as a “dear friend.”Attorney Richard Greenfield added:
“The excessive compensation packages for the FINRA self-regulatory
executives who failed to regulate represent cynical and hypocritical
examples of the incestuous Wall Street-Washington relationships that
have incensed voters across the United States.”Amerivet is a small broker-dealer located in Moreno Valley,
California and a member in good standing of FINRA. Lt. Col. Johnson has
been an officer in the United States Army Reserve for 24 years. He has
completed two tours of duty in Iraq, he is currently on active military
duty at Fort Irwin, CA, and he will soon begin preparations for
deployment to Afghanistan later this year.
Regular readers are well aware of our extreme appreciation for the immense amount of wonderful work Mary Schapiro has done not only while at Finra but at the SEC as well. For newbies, we recommend perusing some of the articles in the following link.
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Mary and cronies will only go down when the Zeroman is impeached.
Maybe May next year?
Nuke them till they glow.
...from space. It's the only way to be sure.
I hate that faker !!!
Oh but Mary is a General ...bitch !
wasn't this post supposed to be about Mary Shapiero?
fuck transparency.....i want good old fashioned justice and until that stupidass whore is hanging from a tree there ain't goona be no justice....
there is a vast left wing conspiracy to conspire against the american people in the perpetuation of the crimes of the obama crime syndicate which reports to the bush crime syndicate....
SEC 2010 Budget = $1.3 Bil
US population = 300 mil
My share $4.33. Here's $10. Get lost.
I got five on it... =)
i'd give a 1/10th troy ounce Gold American Eagle for her to get lost and get someone with a set of balls...
(Willing to use them in there to fight like a man for the taxpayer.)
Yeah, you read that right :)
The hits just keep on coming....
When the phuck is the President of the United States going to get his head out of Larry Summer's ass and start growing some stones?
Barack: I already know that Geithner does the Diet Coke fetching, but I'm starting to wonder if your job is to get the straws? Howzabout you put Eliot in at the SEC?
Speaking of bank failures, Mises event is posted today ("The Failure of the Keynesian State" at the Mises Circle in Houston - Saturday, 23 January 2010):
Bank Failures in a Keynesian World (Douglas E. French) - http://www.youtube.com/watch?v=eLe51SiA7I4
Keynesian Predictions vs. American History (Thomas E. Woods, Jr) - http://www.youtube.com/watch?v=6XbG6aIUlog
Prepare for the Worst (Ron Paul) - http://www.youtube.com/watch?v=9W6KJRIums4Why does anyone think that FINRA is any better than the SEC? If anything, I would assume them to be worse, given that they are the self-regulator (what a joke that is) of the financial industry.
And who is Amerivet, and how *dare* they go after FINRA :)
I do believe that there are more than a few federal judges that would like to preside over this case.
The SEC and FINRA are two peas in a pod. They are both corrupt. The revolving door is a serious problem as key SEC attorneys move in and out of the Comm. to senior positions at key Street firms and to partnerships at the top securities law firms. FINRA is similar with key players there going to compliance departments.
The incestuous nature of this ongoing problem is fueled by regulation that is completely ridiculous. Consider SARBOX. We are about to make the problem worse with another round of foolish regulation put together by people who have NEVER WORKED A DAY IN THE BUSINESS. For those of us who have actually tried to impart key issues to Hill staffers, I can tell you it becomes obvious within a few minutes that they don't know what the $%*& we're talking about. But as we watched Barney in Davos, that doesn't mean they can't still write a bill and pass it.
I can't believe I'm saying this but Thank God we've got cloture in the Senate as both the House and WH are clueless on financial services reform. Their basic plan is to give a dysfunctional agency more money, more staff and more regulation. Unbelievable...
When the system starts to crumble the skapegoats are always dragged out paraded about.
Hire 3 or 4 private firms to police the markets. Just give them the law books that apply and 1% of everything they find. Just hope I'm short gs when it happens!
Private firms would eventually be bribed by GS and the others then it would become part of the revolving door of employment/ government-company-lobbyist in any order. We need patriotic people that actually care about the country with integrity. Like William Black , Brooksley Born.