Big Brother is Coming To Your Brokerage Account

Tyler Durden's picture

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

In the midst of the financial crisis, our “leaders” had a choice. They could’ve done what most Americans wanted, which was allow failing firms to fail and permit the chips to fall where they may. In contrast, our “leaders” settled on trillion dollar bailouts with zero strings attached for the criminals who destroyed the nation’s economy. At that point, the American people would’ve been at least somewhat satisfied if the rule of law was applied to the banksters, and those who deserved to go to jail were locked up. As we all know by now, the Justice Department decided to create a special “Too Big To Jail” untouchable class, and nobody was held accountable for anything. Once again, our “leadership” could’ve look at the situation honestly and responded appropriately. Rather, they doubled down on corruption and criminality and now nobody trusts anything. We don’t trust the Presidency, the Congress, the intelligence agencies, the banks, the financial system, the courts, the Federal Reserve, or any institutions at all. We certainly don’t trust Democrats and Republicans. In fact, millennials in particular have given up all trust in everything. They don’t even trust Jay-z anymore, which I suppose is what happens when you prance around with Warren Buffett and flash illuminati signs 24/7. This is how society breaks down.

Moving along, with confidence in “the system” already in the gutter by summer 2013, Edward Snowden released a bombshell of information on illegal government spying. It confirmed what so many of us had been saying for years, but had been dismissed pejoratively by the mainstream as “conspiracy theorists.” Once again, our “leaders” had a choice. Take the difficult steps and offer real reform, or merely pretend nothing really happened and defend the practices at all costs. Once again, they chose the latter. Just as no bankers were jailed for the financial crisis, no intelligence operatives were jailed for illegal spying. In fact, nothing at all has happened to James Clapper for perjuring himself in front of Congress.

 Once again, rather than reforming the system, the status quo is doubling down. I have recently highlighted several such efforts with regard to the internet, which can be read below:

Say Goodbye to “Net Neutrality” – New FCC Proposal Will Permit Discrimination of Web Content

Obama Administration Launches Plan to Make an “Internet ID” a Reality

It now appears the status quo is moving to destroy any last semblance of privacy with regard to your personal brokerage accounts. Yep, in the name of “stopping fraud” and the practices of unscrupulous brokers, the Financial Industry Regulatory Authority (FINRA) wants to launch a program called Cards, or the Comprehensive Automated Risk Data System. This electronic system sounds a lot like the so-called metadata the NSA is collecting on everyone’s internet usage. This “robocop” would collect a weekly “record of activity at all of the more than 4,100 brokerage firms nationwide.”

For your own good of course. Oh, and yeah, to stop terrorists or something…

From the Wall Street Journal:

In December, the Financial Industry Regulatory Authority, which oversees how investments are sold, proposed what it calls Cards, an electronic system that would regularly collect data on balances and transactions in brokerage accounts.


If adopted, Cards would revolutionize how regulators do their jobs and could make it harder for unscrupulous brokers to bilk customers.

Give me a fucking break. The last thing the establishment cares about is stopping fraud. Fraud is the number one driver of American GDP at the moment. It is institutionalized, protected and endorsed. This is about nothing more than destroying your financial privacy.

Under Cards (which stands for Comprehensive Automated Risk Data System), Finra would collect—probably weekly—a record of activity at all of the more than 4,100 brokerage firms nationwide.


Finra would scour the data continuously, looking for any hints that a firm or a broker might be taking advantage of a client: excessive trading or commissions, switching from one mutual fund to another, overcharging for bond trades, overconcentrating in risky or illiquid securities, and so on.

The nanny brokerage state. Was this Michael Bloomberg’s idea or what? Better make sure there isn’t too much salt or sugary drinks in your portfolio.

Social Security numbers and other personal details won’t be included in Cards, so Finra won’t be able to identify which investor an account belongs to or to match any investor’s holdings across firms. Nor will the data give anyone access to cash or securities.

It’s just metadata, nothing to see here serfs!

That, Mr. Ketchum argues, would enable the regulator to stop at least some misdeeds before too much damage is done. And the sense that a regulatory RoboCop is watching their every move could deter some brokers from doing anything wrong in the first place.


“The good that will come from the dramatically increased ability to reduce fraud will way overwhelm that extraordinarily remote risk,” Mr. Joachim adds.


Mr. Ketchum says he hopes that Cards will go to the Securities and Exchange Commission for final approval by next year, after further refinements and input from brokerage firms and the public.

The battle is on and the system is doubling down. What are you going to do about it?

Full article here.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Racer's picture

"stopping fraud"??????????


So why aren't they doing anything about the major fraud that is ongoing?

LawsofPhysics's picture

Do you really expect them to indict themselves? 

"The few who understand the system, will either be so interested from it's profits or so dependant on it's favors, that there will be no opposition from that class." — Rothschild Brothers of London, 1863


"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild


NoDebt's picture

Death rattle.  That's what doctors and nurses call it.

Ignatius's picture

New rules and regs for the plebes while ignoring laws already on the books for the TBTFs.

NotApplicable's picture

So, now that Goldman is part owner of the next "fair" market monopoly dba "IEX," is CARDS going to be the next dataset used to front-run the OPM managers?

Theosebes Goodfellow's picture

This is not about front-running OPM managers. This is about getting a hard numbers reading of everything in ALL accounts before pulling the biggest 'Cyprus Haircut' the world has ever seen. It is the only way they know how to try to 'right the ship' without having to do the truly necessary but highly unpalatable return to a gold/silver/bi-metal standard. That it won't work matters not one iota. To paraphrase the Clinton cunt, "what difference does it make" when they steal your 'zeros and ones'? What are you going to be able to do about it?

If it is not in your possession, you won't own it. Anything over $100k or $250k, poof! Not yours anymore. Right out of your money-market account. Now, are you ready for the kicker? You're going to make it easy for them. When the shit starts getting freaky, you'll run to your brokerage account and sell everything in the hopes of getting it to your personal checking account. But on its way there, that money will go into..., (wait for it...), your money-market account. It'll make the harvest so much easier for them.

Let's call it the 'Mash-da-muppets' Moment. And remember, it's 'for the children', or the 'common good', or 'saving the Earth'. Wrap it up in an American flag and put a Norman Rockwell portrait of grandma on it. Call it treason to fight it. And we'll all kick ourselves for not having gone boating more often, (AHEM!).

Squid-puppets a-go-go's picture

does this database enable the gov to un-co-mingle accounts? Could be useful....

what's that smell's picture

trial balloon.

what makes y'all think CARDS isn't already up and running?

and they got a better system (CARDSHARK?) they want to replace it with... they wave the obsolete system round to fascinate the sheep...

"who wants big brother watching your broker?"   "baaaaaaaaaaaaaaaaaaaaaaaaaa."

Common_Cents22's picture

congress can't even bring themselves to outlaw insider trading for themselves for cripes sake.   Bold, putting the chip on their shoulders just daring for the rest of us schlubs.

auntiesocial's picture

egg xactly. READ MY MIND. 

why isn't there a camera and NSA tap in Jamie Dimon's office? 

answers own question...

y3maxx's picture

...Get the f*ck outa Dodge folks. the USSA is experiencing in its "final breaths"

TeamDepends's picture

Wow, we were going to use that exact phrase in response to LawsOfPhysics below and add you also need a sword to protect the phyzz, along with food, water, etc. etc.

TeamDepends's picture

Evicting the grifters in the White House, for instance?

Stoploss's picture

Burying the libs neck deep in sand before high tide, tends to correct issues like these in record time..

LawsofPhysics's picture

Just another reason why everyone needs to get physical.

Grande Tetons's picture

Olivia Newton John was way ahead of her time. 

LawsofPhysics's picture

and she still looks damn good too.

Grande Tetons's picture

Remember that black leather outfit at the end of Grease? Man, she could melt ice. 

pods's picture

Thanks for puttting that FUCKING SONG IN MY HEAD!

Sorry, one road trip to Rhode Island that fateful summer unleashed LGP about oh, a dozen times in 6 hours.

I haven't been the same since.


NotApplicable's picture

Could be worse.

Forty years going, and I still get this fucking song stuck in my head regularly.

CheapBastard's picture

Olivia Newton John....ahhhh, the 70's and 80's were pure music magic for me with wonderful songs, etc:

LawsofPhysics's picture

So, what was gold in 1996?


Buy low and sell high.  Not the other way around.

Kirk2NCC1701's picture

Gold is gold.  It's the cost of currency that varies relative to gold. 

It matters what you think which is the Numerator, and clearly TPTB are winning even that battle via that Fed's Jedi mind trick.

Agent700's picture

Disengage, misinform, elude, stack where safe......


LetThemEatRand's picture

Good old FINRA.  Always trying to help the little guy, like with their mandatory arbitration provisions that require consumers to sue brokers before an arbitration panel that always includes at least one industry guy.

fonzannoon's picture

This is the best thing to happen to the financial advisory business in a while. Now anytime a customer has a complaint the broker can point their finger right at FINRA and blame them. Compliance departments can do the same. Idiots.

LetThemEatRand's picture

It will be the first defense to every claim against a broker/advisor.  

NYPoke's picture

The mistake with SkyNet is assuming that it would be the machines taking over themselves.


The machines are taking over.  However, they are being controlled by The Illuminati, The Templars & probably more than a few Martians.


SkyNet is here & douchebags are running it.

Kirk2NCC1701's picture

It's not Martians, but Clingons who are 'helping' and directing things.

Spungo's picture

In theory it sounds good. More record keeping is generally a good thing when it comes to finance. In reality, I'm sure the government will find a way to completely fuck it up. The cost of compliance will be ridiculous, and trades will suddenly cost $20 instead of $10 or $7

Beam Me Up Scotty's picture

"More record keeping is generally a good thing when it comes to finance"

Why, so you can prove your innocence?  Thats the WHOLE problem.  It's not "innocent until proven guilty" anymore.  Everyone is now "guilty until proven innocent".  Except of course, the TBTJ types.  They are ALWAYS innocent and you can NEVER prove them guilty.

Laws and taxes are for the little people.

Dr. Engali's picture

The brokerages can save costs by eliminating their compliance depts since FINRA will in essence be taking over their duties.

fonzannoon's picture

The best part is they can finally eliminate E&O insurance because they will be making sure there are no errors.

Dr. Engali's picture

That would be nice, but they would keep that as a revenue source to continue to fleece us.

Billy Sol Estes's picture

Should be as effective as the SEC*, no?

*(for Congressional inside trading, that is)

BlindMonkey's picture

Congresses legalized insider trading for themselves. So there is that.

wagthetails's picture

never waste a good crisis

if you aren't doing anything wrong it shouldn't bother you

But what i really love is that, they can't do anythign about HFT, Hedge funds, insider trading that is right in their face.  in fact, they are probably allowing that stuff to contiue create the crisis that the gov will use to convince us we need less privacy. 

Dr. Engali's picture

Lol... another regulation and system in place to "protect" the little guy. They are making the Myra sound better and better every day.

War_is_Peace's picture

"They are making the Myra sound better and better every day."


My thoughts exactly.  Getting everyone to open a MyRA willingly would be like trying to herd alley cats.  Create enough fear and the lazy, hoodwinked sheep will flock to the safety of Big Brother.

intric8's picture

Its 'protect' the big guy, and 'arrest' the little guy

Since when do they arrest the big guys in finance related fraud?

Sick irony time- the little guy cant handle the faith destroying process of seeing the most powerful bankers getting taken down, but we can handle getting arrested ourselves for tiny infractions like not claiming 100 lousy dollars sitting in a foreign bank account

El Vaquero's picture

IMO, if this isn't about MyRA today, it will be in the future when the government resorts to outright theft, decreeing that people must hold a minimum percentage in government bonds.  They'll say it is for our own good, but it will really for their own good.  Our government has gone insane, and is only looking out for itself and a few fat cats.

GrinandBearit's picture

No surprise here. 

I cashed out my brokerage account, 401k and IRA many years ago.  I do not keep large amounts of cash in a the bank either.

The only way to beat them is to not participate.

saltedGold's picture

Same thing here.  I started to notice a few very odd things about some of my investments and price moves.  That was before HFT was talked about, but I had a feeling something was rigged.  Closed it all down.  I beg everyone I know to ditch the 410k and IRA.  Most resist because they don't want to pay the penalty!  I say it's better than paying the real penalty in 30 years.

slightlyskeptical's picture

I am ok for them going after brokers flipping loaded funds. I know a guy who makes more than a million per year, who flips B shares into new b shares right before they are about to convert to A shares and makes a brand new 4% commission each time.

fonzannoon's picture

Brokers have complaince departments for that. By the way there are no B shares anymore. They have been gone for a while now. He probably flips them into non traded reits now and makes twice that.

philosophers bone's picture

They can nail the little guy making $5K off of a rumour.  They won't nail the HFT whose very purpose is to manipulate / front run / wash / spoof on every single trade.

Way to "self-regulate" FINRA!

madcows's picture

what's the point, I don't have any money to spy on.

G-R-U-N-T's picture

Admire your passion Mr. Krieger!!! :-)

That feeling deep down inside our gut will eventually burp up on Washington at some point, but only when the people are in enough economic pain!