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FINRA Drowning In Complaints About Market Manipulation

Tyler Durden's picture




 

Whether it is due to the general investing public finally realizing that the market is neither fair nor efficient, that the scales are tipped against the common man from the moment the 'Buy' (or, more rarely, 'Short') button is pressed, or that as the past two years have shown the market is dominated by insider trading, "expert networks" and big legacy investors surviving only due to the government's intervention on their behalf at critical times, is unknown, but Finra is now officially and finally drowning in a barrage of complaints about market manipulation. And to be sure such glaring reminders as 30 year-old UBS traders being singlehandedly responsible (of course, nobody noticed anything over the months and months of creeping illegal trades) for massive cumulative losses that amount to more than the entire net income for the bank (an odd and convenient scapegoat that), will surely not make Finra's life any easier. As Reuters reports: "A Wall Street regulator said industry complaints about market manipulation and trade reporting have spiked this year, raising questions about the adequacy of banks' internal controls over their traders. FINRA has received complaints this year about banks' audit systems, canceled orders, and brokers misrepresenting whether orders were on behalf of customers. "These are areas that for a long time we were not receiving complaints in, and all of a sudden this past year it's really spiked up," DeMaio, senior vice president in FINRA's market regulation unit, told a FIA options industry conference." That's great: so US investors can sleep soundly knowing full well fiascoes such as UBS' Delta One implosion will be confined to the UK (where, incidentally, the director of market at the local regulator, FSA, just resigned - it is unclear if he will follow a recent previous FSA departure straight into the willing clutches of such a non-market manipulative entity as JP Morgan), and that manipulation is being rooted out in the US at its core at a brisk pace.

Right? Maybe not:

The UBS rogue trading case could intensify pressure on regulators to ferret out wrongdoing. In the United States, it will also put more pressure on rulemakers to craft tough regulations as they implement the Volcker rule, a part of the 2010 Dodd Frank financial oversight law that limits banks from betting their own money in financial markets.

 

FINRA has made stopping manipulation a priority the last couple of years. The regulator, funded by the financial services industry, monitors trading and reports to the U.S. Securities and Exchange Commission.

 

"We're seeing a large number of order misrepresentations, we're seeing problems with our audit trail," DeMaio said, adding some brokerages have identified orders as customer orders when in fact they originated from the firm itself.

 

FINRA has asked firms if they have seen some of the problems internally, and whether they've taken steps to address them, DeMaio added.

And while, rhetoric aside, everyone knows that Finra is completely incapable and actively dissuaded from handling anything that could potentially harm any of the real market "manipulators", because after all Finra is a self-regulating organization which in a market that depends on manipulation means it can't really do much if anything, concerns about record plunge in market confidence are pushing regulators to extend the Volcker Rule to overseas banks with US operations to make sure the Kweku Adoboli incident does not spread to the US courtesy of lax internal risk controls such as that exhibited by UBS, and present the optics they are doing at least something:

Regulators writing a rule limiting proprietary trading by U.S. banks are considering extending the restrictions to overseas firms with operations in the country, according to four people familiar with the proposal.

 

“There is no question that we would lose jobs,” said Wayne Abernathy, vice president of the American Bankers Association in Washington. “A lot of what the banks have been doing in recent years to diversify their services are activities that can easily be done by foreign competitors.”

 

The rule, named for the former Federal Reserve Chairman Paul Volcker, includes exemptions for government-guaranteed investments, hedging, market-making and insurance-company transactions. It also exempts proprietary trading conducted “solely” outside of the U.S.

 

The language of the bill is subject to interpretation by regulators at agencies including the Federal Reserve and the Federal Deposit Insurance Corp. Dodd-Frank, signed into law by President Barack Obama last year, requires regulators to adopt rules to carry out the provision by Oct. 18.

 

Regulators are considering how to define operations conducted “solely” outside of the country. Trading managed in the U.S. or involving U.S.-based advisers may be subject to the rule even if it takes place overseas and has no U.S. investors, the people said.

Well, courtesy of the staged UBS scandal, that will not be the case any longer.

What also won't be the case, is the plan to promote Delta One in replacing and recycling the correlation-cum-prop trading revenue generator that was implicitly eliminated with the Volcker Rule, but was merely morphed over to a new form of correlation desk trade only this time with a fancier name.

The WSJ reports on the imminent demise of yet another form of pseudo-hedged prop trading:

Delta trading has gained momentum in a markets environment in which the mortgage-bond trading business is on the skids and global regulations require banks to set aside expensive capital for loans.

 

Wall Street is counting on trading large volumes of stocks and derivatives to bolster revenue.

 

There is nothing inherently improper about such Delta trading. And many large financial institutions employ this strategy, including Société Générale SA, BNP Paribas SA and Goldman Sachs Group Inc. in Europe and Goldman and Morgan Stanley in the U.S., according to a J.P. Morgan Chase & Co. report.

 

The trading requires state-of-the-art technology systems and can produce as much as $1 billion in annual revenue at top banks, J.P. Morgan said, which noted, "Delta One products in one area of growth in our view, with strong growth in client volumes, resilient margins and untapped potential in emerging markets."

 

But it earlier gained notoriety in 2008, when French bank Société Générale said that Jérôme Kerviel had worked on a Delta One desk while trying to hide $7.2 billion in losses in another rogue trading scandal. Last year, Mr. Kerviel was sentenced to three years in prison.

It is safe to say that in an attempt to scapegoat their stupidity and to cover up for internal bank risk control lapses, regulators will once again lash out at banks (which they themselves saved and in doing so encouraged them to take any and all risk knowing too well they can never fail again), making "Delta One" a thing of the past. In the meantime, we are confident that Wall Street is already hatching plans of "financial innovation" for the next big "revenue" thing: probably called Vega 100 or Gamma 69. In the same time, we also expect the following chart showing the relentless outflows from US domestic equity mutual funds - the truest indication of what the US investor thinks about the stock market - to continue bleeding mutual funds dry until there is nothing left.

 

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Fri, 09/16/2011 - 22:11 | 1679176 SeventhCereal
SeventhCereal's picture

Duh most people lose.  Where is the money going to come from to make everyone a winner?  I guess they are too lazy to pull up a picture of the parabolic DJI and realize that they are about 30 years late in the game.  Long term short, but the market is rigged right now to keep the equities up.

Bottom line, markets exist so companies can raise cash without having to pay them back like a bond.  But the markets can only mortgage its future so far and so long with P/E's in the +50's before the redemptions start kicking in.  Can't buy a burger with a share of AAPL sorry.

Sat, 09/17/2011 - 05:13 | 1679459 Popo
Popo's picture

Hey FINRA,

 

You need to send some fucking people to jail.   This isn't rocket science.

 

...corrupt fuckers...

 

 

Sat, 09/17/2011 - 07:54 | 1679526 Snidley Whipsnae
Snidley Whipsnae's picture

"and that manipulation is being rooted out in the US at its core at a brisk pace."

LOLOLOLOLOL... Thanks, I needed a good belly laugh.

Wake me when JPM/HSBC are forced out of their manipulative shorts.

Sat, 09/17/2011 - 09:24 | 1679587 Kat
Kat's picture

Exactly.

The SEC's own rules (enforced by FINRA) are the entire reason markets can now be easily manipulated and asset prices can deviate so much from fair value and for so long.

Reg Sho rule 204 is a huge culprit.

Of course, the public is too stupid to realize that the rules it wants passed hoping they will help them are the ones that screwing them.

FINRA is already driving broker dealers out. If it increases fines and harassment of regulated firms, it'll just drive out everyone except the too big to fails, making the market thinner and more easily manipulated.

Sat, 09/17/2011 - 11:51 | 1679728 jackinrichmond
jackinrichmond's picture

someone should post the finra website address so that we can all place a complaint.   it sounds like now is the time.

Sat, 09/17/2011 - 12:19 | 1679779 Cdad
Cdad's picture

You typed my exact thoughts this morning.  I have seen plenty of "in house trading."  You know, as in when markets RISE on huge SELLING because market makers BID LIFT into options expiry...aka this whole last week.

I've seen tons of matched lot trading on the burrito supreme stock, supposedly wildly bullish "buying" while at the same time said firm wildly also sells through an alternative exhange.

I've seen lots of magic short selling on stocks for which there is no borrow available.  Has everyone forgotten how many folks became filthy rich selling Lehman shares that did not exist?  I'm sure FINRA will, any day now, put together its report on that fiasco.

We've all seen the crocodile algo at work thanks to the folks over at Nanex, and I'm sure those guys could provide quite a lot of data for FINRA to look at.

 

It is quite interesting how the "regulators" have, in recent weeks, begun to express their concern about various problems within the market.  It's pretty clear that we are approaching the point when market credibility absolutely collapses....causing a complete lack of capital formation...for a generation or two...prompting Dark Pool managers to demand that people be "forced to invest." ['Larry Fink]  Hey...where have you been reading for months that forced capital allocation was coming?

Sat, 09/17/2011 - 12:32 | 1679828 Cdad
Cdad's picture

Oh, and as an aside, and if FINRA wants to get a jump on things, maybe just a quick check into the options action in AMZN yesterday would be a solid place to start.  

A special hat tip to the firm that took yesterday's expiring Amazon 235's from $.03 to $5.15 in one session, magically finding a buyer for that mark up within 2 hours of the close.  You guys are the best, the tip top of the criminal syndicate Wall Street double dealing firms.  Very impressive.

Sat, 09/17/2011 - 13:03 | 1679932 DUNTHAT
DUNTHAT's picture

WOW

Sat, 09/17/2011 - 19:04 | 1680729 fiddy pence haf...
fiddy pence haff pound's picture

out of manipulative shorts?

you mean, the emperor is naked?

say it ain't so.

Sat, 09/17/2011 - 12:52 | 1679833 WSP
WSP's picture

"Bottom line, markets exist so companies can raise cash without having to pay them back like a bond"

That is true, but let me add that public corporations also exist so that individuals can "Cash out" of the equity in their money losing businesses at market inflated prices and then get paid ongoing above market rates for compensation (e.g. perpetual printing of stock options).  Never ceases to amaze me that all of the stock propaganda pumpers never consider that what little "Growth" exists AFTER inflation and accounting fraud are taken out is usually looted by the executives via stock option grants.  One does not need a sophisticated trading platform to see this----most mainstream financial news sites list "insider trading" under each ticker and even slow growth stodgy corporations that pay outrageous salaries to their corrupt leaders display continuous monthly stock debasement via stock options----that, in ADDITION to outrageous salaries.   It truly is unbelievable that the criminals that run public corporations are able to get away with what is basically a smaller version of the Federal Reserves "money printing" every day.  

One thing I can tell you for SURE.  Every morning excecutives of most corporations wake up and say "God, what a great country".  You would too if you could play golf, then meet with your friends to decide on how many stock options to print this month to reward yourself and friends.   Unbelievable but this has been going on for many, many years and nobody seems to care!   Wall Street promotes this behavior and writes stellar analyst reports on the corrupt corporations provided Wall Street gets ther "cut"; most workers are too stupid too even recognize it, and even worse, the average investor is ----well, retarded!

Unbelievable how screwed up our fascist system has become!

Fri, 09/16/2011 - 22:14 | 1679179 Bansters-in-my-...
Bansters-in-my- feces's picture

Sounds Bullish.

Fri, 09/16/2011 - 22:18 | 1679183 Rastamann
Rastamann's picture

#13. Rampant cronyism and corruption

Those in business circles and close to the power elite often used their position to enrich themselves. This corruption worked both ways; the power elite would receive financial gifts and property from the economic elite, who in turn would gain the benefit of government favoritism. Members of the power elite were in a position to obtain vast wealth from other sources as well: for example, by stealing national resources. With the national security apparatus under control and the media muzzled, this corruption was largely unconstrained and not well understood by the general population.

Fourteen Defining Characteristics Of Fascism

Sat, 09/17/2011 - 09:59 | 1679620 Kat
Kat's picture

Yes, sir!

Small firms are regulated out of existence by FINRA and the SEC so that there is no choice but to deal with the government cronies who can rape and pillage at will.

And "national resources" are, of course, the productive population of the country. There is no greater national resource.

Fri, 09/16/2011 - 22:27 | 1679192 Nolsgrad
Nolsgrad's picture

that tiny little up in flows late August... yeah me, fat fingered it.

Fri, 09/16/2011 - 22:46 | 1679193 Absalon
Absalon's picture

These complaints are being made by traders against traders.  When they run out of retail investors to cheat,  Wall Street starts cheating each other. When that game ends, Wall Street will implode.

Sat, 09/17/2011 - 00:19 | 1679344 AmCockerSpaniel
AmCockerSpaniel's picture

FINRA, is a private corporation. It replaced National Association of Securities Dealers, Inc. (NASD). Just what do you expect?

Sat, 09/17/2011 - 08:01 | 1679529 cowdiddly
cowdiddly's picture

Ever notice how to set up a criminal enterprise? You have brokers are regulated by the SEC but they  supposedly settle each and every trade through a private organization, the DTTC, then the SEC says they do not have any authority over.

Or maybe the taxpayers and the treasury and then Fed a private organization not auditable.

I love our own shining corrupt money scam right here in Oklahoma. Taxpayers pay highway taxes. These funds are added with road tolls and given to you guessed it The Turnpike authority, a private organization that does not have to report how the money is spent or where it went.

Fri, 09/16/2011 - 22:41 | 1679202 X.inf.capt
X.inf.capt's picture

second try....

rogue trader, what about prosecuting these ROGUE BANKER CEO's.

yeah, i know.....fat chance.

p.s. we had a major crash here at the air races.

some of the boys and i just got done donating blood

watched a HUEY that was on display get fired up and start evac'in people to renown hospital. maybe people will pull together when SHTF.

the world wonders

Fri, 09/16/2011 - 23:49 | 1679300 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

    Thanks for your help. Got in late and just watched a video of the crash. Unbelievable, the plane ,WWII mustang, nosed dived into a portion of the box seating and disintegrated.

Sat, 09/17/2011 - 00:59 | 1679366 X.inf.capt
X.inf.capt's picture

About 4:30 local, caught a phone call about 10 min later. We headed to the 'bank'. Girlfriend got called in to work early, yeah, she's wears white.
One hell of a mess, if you see a close up of that plane hitting, that's what artillery looks like, up close.
53 wounded, 3 aren't getting back up, so far.
Poor people, didn't know what hit them.
That's why I avoid events and large groups of people...

Fri, 09/16/2011 - 22:42 | 1679210 Bobbyrib
Bobbyrib's picture

Big surprise..

Fri, 09/16/2011 - 22:43 | 1679212 navy62802
navy62802's picture

If there were some hypothetical agency within the US government that was designed specifically to identify and eradicate all of the fraud and corruption from the stock markets, our economy would collapse overnight. Because the only thing keeping it afloat right now ... the only thing driving "growth" is fraud and corruption. Eliminate those two things from the overall picture and it all goes poof into the wind.

Fri, 09/16/2011 - 22:55 | 1679226 Xibalba
Xibalba's picture

finra ain't gonna do shit....and we know it.

Sat, 09/17/2011 - 10:05 | 1679626 Kat
Kat's picture

Yes it will. It'll collar some firm on procedural issues (that is, a t wasn't crossed or an I wasn't dotted on some paperwork - they didn't actually do anything wrong) for headlines and fine it out of existence.

Firms actually fucking over their customers are the too big to fails. They are politically connected, backstopped with your taxes and untouchable.

The big banks love these complaints because it gives a pretext for FINRA to drive their competitors out of business.

Fri, 09/16/2011 - 23:19 | 1679258 digalert
digalert's picture

Gee Wally, nobody complained before. Complaints spiked? Perhaps the shit-can where all complaints go has overflowed from staggering to overwhelming. fuckin crooks

Fri, 09/16/2011 - 23:20 | 1679262 Let them eat iPads
Let them eat iPads's picture

That UBS trader needs to be severely punished.

Anything less than a 2 week suspension with pay would be a farce.

Fri, 09/16/2011 - 23:46 | 1679292 Cdad
Cdad's picture

Stop Dave.  Will you stop, Dave?  I'm afraid.  I'm afraid, Dave.

http://www.youtube.com/watch?v=euVYMYocX74

I can feel it.

 

Sat, 09/17/2011 - 00:58 | 1679374 SheepDog-One
SheepDog-One's picture

The market is just a joke at this point, even daily carrot and stick has lost its mojo, theyre at the end of the line here very soon as theres no point to it anymore.

Sat, 09/17/2011 - 10:13 | 1679633 espirit
espirit's picture

All casinos are rigged, and when the last of the sheeple forfeit their last dime it will be time for daBoyz to turn against one another for the pennies in front of the steamroller.

About time for a few to be run over.

Fri, 09/16/2011 - 23:48 | 1679294 Dingleberry
Dingleberry's picture

will that rogue keep his bonus???  BTW, fuck FINRA. They have known forever about quote stuffing, front running, naked shorting, daisy chains, insider trading, reverse trades, etc.  But the thieving is just too damn easy and good. That's why there is no volume. Everyone knows the game is RIGGED.

Fri, 09/16/2011 - 23:48 | 1679295 xtop23
xtop23's picture

 UBS needs to be punished ..... this "rogue" trader thing is bullshit.

 He's the guy with the landing party in the red shirt along with Kirk, Spock, and McCoy.

Sat, 09/17/2011 - 21:45 | 1681013 StychoKiller
Sat, 09/17/2011 - 00:07 | 1679331 XRAYD
XRAYD's picture

With Congress and staffers allowed to trade based on inside information, and profit from manipulated markets, and with a toothless speechifier in the White House and his worthless justice department, Who is going to do anything about this?

Sat, 09/17/2011 - 00:33 | 1679355 xtop23
xtop23's picture

 No one.

 Instruct friends and family on how to preserve their purchasing power for the upcoming pyrotechnics and ride it out.

 FIN~

 

Sat, 09/17/2011 - 00:55 | 1679372 SheepDog-One
SheepDog-One's picture

The market is just reduced to a manipulated crowd control tool, until they pull the rug out soon.

Sat, 09/17/2011 - 11:11 | 1679682 centerline
centerline's picture

It is the final battlefield.  Just thinking out loud, I see at least 3 dominant games being played:

The first is the government in cooperation with the Fed.  It is to keep reality from asserting itself.  For example, absent the manipulation we would see those municipal failures right and left as pension funds go bust overnight.  This might just be the distraction that allows the greater crime to be committed, because fighting reality is really just futile.  And of course, the rug could be pulled out at any time quite easily (flash crash demonstrated this).

The second is the banking institutions turned rogue casino players.  This is about pure profit.  About getting away with financial murder.  Making a killing and living like a rock star.  This could either be part of the game, or just noise.  I suspect it is alot of both.  That is, some is noise.  But not enough of it to hurt the game being played or we would see some sort of real takedown.  The component of this that is part of the game I would imagine is a "dumb" component because it is predictable (greed is easy to predict).  This component is probably just a tool for the greater game being played.  Just like the polticians... tools.

The third is the international stage.  This is the real deal in my opinion.  Who is in the driver's seat here is not clear.  I wager the central banks are in control - at least in Western countries.

Sat, 09/17/2011 - 13:09 | 1679953 DUNTHAT
DUNTHAT's picture

OUTSTANDING ANALYSIS.

Sat, 09/17/2011 - 03:22 | 1679437 slewie the pi-rat
slewie the pi-rat's picture

i think finra handles the NASCAR investigations, too, don't they? 

always tearing stuff down to check the restrictor plates and administer fines to those who win while pretending not to cheat?

new drafting rules?  just a little nudge and that rear end gets loose and instead of a slo-speed train wreck we get a hi-speed car wreck? 

and people on fire?

after they get slammed into the fuking wall?

sheeeee-it, man!  that's racing!

Sat, 09/17/2011 - 08:43 | 1679556 SheepDog-One
SheepDog-One's picture

Im on FIRE! A'm on FAAAR!! HELP!!

Ricky Bobby, youre not on fire, youre going 5 MPH....and why the hell did you take off your racing suit youre in your damn underwear man!

Sat, 09/17/2011 - 07:17 | 1679501 Smiddywesson
Smiddywesson's picture

Mom and Pop are not coming back.

Sat, 09/17/2011 - 07:17 | 1679502 nah
nah's picture

gamma sixtey nine is over the top

.

maybe it would work

Sat, 09/17/2011 - 07:33 | 1679510 Zola
Zola's picture

Tyler, i could not agree more about legacy investors being bailed out by the government. This is a disgrace and is very detrimental to capital formation and growth. We have totally clueless investors still managing large amounts of money and directing this capital in totally the wrong direction. While a good cleansing would redirect this remaining capital towards new and more efficient people , this constant bailout of people like biggs , biryini, buffet is absolutely SCANDALOUS. Again recently, had the Fed not come out guns blazing SPX would sure be <1000 and the momo chasers would be shown to be totally clueless.

Sat, 09/17/2011 - 13:46 | 1680032 Cdad
Cdad's picture

This is a disgrace and is very detrimental to capital formation and growth.

This is the key point to understand.  In the event that Ben Bernanke pulls out yet another bazooka [something more than buying the 30 year note], it will be central banks' continued declaration AGAINST capital formation and free markets.  It is the promissory note that the dollar will continue to be devalued for the sake of supporting bank assets AT ALL COSTS.  

Now, I don't think Ben Bernanke has another bazooka, myself...which I believe will cause the dollar to rise very quickly.  I think he will announce the Twist and nothing much more.  However, and if I am wrong, folks need to understand one simple thing.  A revolution in this country is urgently needed...and I am not talking about guns and guillotines.  I am simply talking about a movement in this nation to simply end spending and investing [the second part already well underway].   It really can be that simple.

The key to dealing with an unrepentant Federal Reserve Bank, as well as striking a blow against crony capitalism in this nation, is simply the refusal to participate in the false economy.  Yes, you may get a negative real return on cash in the short term.  You'll probably do better holding metals in the intermediate term.  However, the global Ponzi scheme now at its logical tipping point, cash will be king, to be sure. 

Capital Formation is the only true solution to our current problems, but capital will not form in a financial system as corrupt as the current regime is...and capital will not form until free markets are finally allowed to clear.  

Period.

Sat, 09/17/2011 - 07:44 | 1679513 cowdiddly
cowdiddly's picture

BULLSHIT. They have been seeing tons of complaints since they implemented REGSHO years ago. Finra and the SEC have turned a blind eye to the corruption for at least 7-8 years that I am factually aware of and have direct evidence; probably much longer that I do not have direct evidence. This can only mean that the Agencys are in collusion with the crimes. Now it is getting so bad the markets do not even make any sense with reality, so now the only players are the HTFs vs the FED. You  two can have it, fight it out. BURN IT DOWN. 

Sat, 09/17/2011 - 08:46 | 1679559 SheepDog-One
SheepDog-One's picture

Theyll burn down soon! Theyre at the end of their game, there isnt any point in it anymore. Mom and pops gone, 401K's being cashed out....no one left to rob, so no point in elaborate market manipulation now OTHER than crowd control and everyones calling BS on that too!

Sat, 09/17/2011 - 10:11 | 1679632 Kat
Kat's picture

Moms and pops were never a large enough portion of the market to matter.

HFT is here to stay. Trading costs have been increased so much by the regulator (for both customer traders and market makers) that algos are the only way to make money.

They're cheaper and more efficient than hiring traders. Plus, the bands you guys are such big fans of for market makers require algos. A market maker can't maintain a band around the NBBO manually. You guys are just going to have to make peace with algos - especially since you were asking for them. Or did you all not know that this is what you were demanding when you demanded it?

Sat, 09/17/2011 - 10:55 | 1679673 T-Bond
T-Bond's picture

Electronic market making is one thing. Quote stuffing, painting the tape and all the other structured theft that goes along in the current HFT brush stroke is not here to stay. Got it?

Sat, 09/17/2011 - 13:50 | 1680043 Cdad
Cdad's picture

HFT is here to stay.

That is assured....NOT at all.  When the government finally decides that a collapse in market credibility must be addressed, the HFT is probably the first and easiest issue to deal with.  Slap  ten cent tax on each transaction, and these guys immediately have a huge problem.

And if you don't think that will happen, then I dare say you do not know how desperate Uncle Sam is about to be in search of revenue...as the real economy continues to contract.

Sat, 09/17/2011 - 15:17 | 1680201 GoinFawr
GoinFawr's picture

wouldn't a bid/ask latency rule be sufficient?

Sat, 09/17/2011 - 09:56 | 1679614 T-Bond
T-Bond's picture

Exactly Cow, 2003 is when things really went bad. The PTB will allow corruption to remain at a very high level in one form or another until it finally does burn down. This business had deteriorated exponentially in the last 10 years.

Sat, 09/17/2011 - 09:33 | 1679592 goldfreak
goldfreak's picture

am still puzzled why there's no mention of occupy wall street on ZH. Can anybody fill me in? Am thinking of going, but i would appreciate ZH take on it

Sat, 09/17/2011 - 10:11 | 1679631 MaximumPig
MaximumPig's picture

Because most if not all of the commenters here actually work on Wall St.  They're self-loathing, but not self-loathing enough to throw a brick into their own office lobby.  Plus the security guard might recognize them.  The rest of folks here live in mountain bunkers sitting on stacks of bullion and their biodiesel wagons would overheat before they made it downtown.

Sat, 09/17/2011 - 10:20 | 1679638 espirit
espirit's picture

I junked you because you are off topic and deserve to be treated like the idiot MaxPig that you are.

Sat, 09/17/2011 - 10:52 | 1679671 goldfreak
goldfreak's picture

Max, you can't possibly think the people who comment here are from WS

Sat, 09/17/2011 - 09:40 | 1679596 Ungaro
Ungaro's picture

FINRA is paid for by the industry it is supposed to regulate. What, are they going to bite the hand that feeds them???

FINRA is self-regulating like an alcoholic is. He only drinks until he passes out, then he stops.

Talk about the fox guarding the hen house!

Sat, 09/17/2011 - 09:56 | 1679616 Kat
Kat's picture

Yes That's exactly what they do.

FINRA is well known for thinking of the firms forced under its thumb as little gold mines.

FINRA examiners' bonuses are determined by the fines they are able to rake in from its DEA firms. It's a classic mafia shakedown.

The large banks - the TBTF - are untouchable. They pay fines, but they collect so much economic rent from government that it's a small price to pay.

I find that very few people who are not regulated by these assholes know how FINRA and the SEC actually work.

Sat, 09/17/2011 - 09:48 | 1679600 adr
adr's picture

You forgot the hidden stuff in the jobs bill that will be passed at some point. One major thing wil be making it very easy for small corporations to go public. The new patent law changes also stink.

Every law we pass is to benefit lawyers and bankers, they all screw honest people.

First rle of a Ponzi: Keep finding new suckers to fund your criminal enterprise. 

They are going to try the small business stock scam all the while saying it is great that small business will open up a great avenue to funding. Then all small business will be bought for pennies on the dollar to destroy the only small bit of competition left.

I wonder when Americans will figure out that nobody in Washington has their interests in mind and that Washington is not the solution. I fear they will only figure that out once it is to late.

Sat, 09/17/2011 - 09:54 | 1679611 MFL8240
MFL8240's picture

The Clown and  the gang of Jewish bankers must go, that is the first step in returning America to the people.  This is exactly what happened in Germany in the 30's. Hope it lasts that long! The law schools are turning out more and more of these magots daily subisdized by tax dollars, so stop paying your taxes and tell them FU, games over. I think a finacial revolution where we all stop paying taxes is far more affective that riots.

Sat, 09/17/2011 - 09:47 | 1679603 Kat
Kat's picture

The SEC's rules (enforced by FINRA, which is a "self-regulating" body the way the Gestapo was a "self-regulating" body) create such enormous distortions in the market that it no longer works.

Manipulation of shorts is sanctioned by the SEC, for instance.

What you are witnessing is the result of top down control of a market. The market no longer works because participants are no longer free to compete with each other for trades.

The SEC has a vice like grip on public markets, controlling who can sell what, when and at what price.

Of course the market doesn't work. The SEC broke it.

The calls to investigate "manipulation" and all that are just going to increase the top-down control and destroy the market further.

All these "manipulators" are doing is figuring out how to profit from the distortions created by SEC top-down control since they are no longer able to participate in the market normally because of these rules.

This is what happens when markets become over-regulated.

Unfortunately, the ignorant public is begging for more top down control, ensuring the the market will become even more distorted and will reflect underlying economic reality even less.

These days, the most profitable trading is not in understanding the effect of underlying economic reality on the price of the security, but understanding the impact of the SEC's rules on the price of the security.

Since the public hasn't the first clue about these rules, they get screwed. But, then, they go ask for more top-down control.

If they want to fuck themselves, let them. I no longer have sympathy for these idiots.

Sat, 09/17/2011 - 10:35 | 1679654 Quinvarius
Quinvarius's picture

That really is not the problem.

Sat, 09/17/2011 - 10:39 | 1679659 centerline
centerline's picture

Sympathy for what idiots? You mean the regular people who trust the system is fair - and that prices reflect performance - not miles of regulations?

I hope that is not what you intended. Because it would make you sound like an idiot yourself. Just a different kind of idiot.

Sat, 09/17/2011 - 09:48 | 1679605 MFL8240
MFL8240's picture

Check the shreader machine, you should be able to find small pieces of each complaint.

Sat, 09/17/2011 - 10:05 | 1679625 sbenard
sbenard's picture

The greatest market manipulations of all are those executed by the Fed. They are the worst criminals of all!

Sat, 09/17/2011 - 10:27 | 1679646 Everybodys All ...
Everybodys All American's picture

Gee do ya think. Look how many rumors ran the market this week alone. The SEC and or FINRA still can't even prosecute the L Blankfeins of this world who blatently lie  to Congress.  The Fed has made the stock market a barometer of whether they need more policy action. How in the hell can anyone see this as nothing other than manipulation. The economy, unemployment, and poverty reaching new highs and the market holds it's same elevated levels. Europe looks like they are ready to bust apart along with the Euro. Greece continues to slide further behind and the market holds it's current levels. The media portrays all negative news with the slight of hand of "better than expected".

Manipulation at all levels.

Sat, 09/17/2011 - 10:33 | 1679651 virgoorange
virgoorange's picture

BULLISH BOB BAGLEY SECURITIES, INC.

2535 A CEDAR SPRINGS

DALLAS, TX  75201

www.bullish.org

  BULLISH BOB                                                                                                800-369-0651 PROFITABULL                                                                                                                 OFF:214-954-4445

972-BUL-LISH                                                                                                                  FAX-214-954-1967

972-285-5474                                                                                                       RES-972-681-2392 

 

2nd Editorial 09.02.2011

 

$6.00 Dollars of $eparation between you and your PORTFOLIO

 

Dallas is blessed with having 3 of the top 15 clearing firms in the world located here in Dallas. Penson, PNSN, is the world’s 2nd largest with 437 Broker-Dealer, clients according to Investment News, July 18, 2001.  The 8th largest is Southwest Securities, Inc. with 165 Broker-Dealer clients.

 

With PNSN closing as of 09.02.2011 at $2.09 and SWS closing at $3.75, you have less than $6.00 dollars of separation between 600 Broker-Dealers and nothing.  There is no telling how many stockbrokers, financial advisors, financial planners, or certified whatevers are executing their millions of customer’s orders thru these two clearing firms.

 

My firm clears thru Sterne Agee, the 10th largest clearing firm according to Investment News, July 18, 2011.  We also have a vested interest in SWS, as my oldest son has worked for them for over ten years now, and beginning in May 2010, SWS was sheltering and feeding my grandson, so we have no ax to grind with SWS. 

 

In September 2001, we cleared thru MJKI in Minneapolis, MN.  In the month of 9/11, MJKI failed as a clearing firm.  It was the largest bankruptcy in SIPC history until Bernie Madoff.  SIPC came to my customer’s rescue, and my rescue, but it wasn’t an overnight thing!  And I still lost some money!  My firm has nothing but applause for SIPC, but MJKI cleared for about 65 Broker-Dealers and it was not just an overnight switch.

 

In my $6.00 dollars or less of separation above, PNSN & SWS account for approximately 15% of the membership of FINRA.  You can ascertain the membership of FINRA by looking at the Annual Report of SIPC every year on p.8, Table 2 and see that as of the close of 2010, there were 4412 FINRA members.  Now a lot of members get upset with FINRA, but just imagine that FINRA has to regulate the likes of the largest clearing firm in the world, Pershing, and a one man Broker-Dealer like mine.  They have a daunting task to accomplish as witnessed by the failure of Madoff.  Still you do not see articles written about FINRA like you do the SEC, such as the following: 

http://www.rollingstone.com/politics/news/is-the-sec-covering-up-wall-street-crimes-20110817

 

It might behoove you to make sure just who your financial whatever is executing your orders thru.

 

For those of you who do not understand the pecking order, it is as follows: Depository Trust Company, Clearing Firms, of which Investment News only ranked the top 15, and the 15th one only had 38 Broker-Dealer clients, 4412 Broker-Dealers, and then the duck soup of everyone else and whatever they are calling themselves this decade.  Basically it breaks down from One to 15, to 4412, and then in the 100’s of thousands of brokers, planners, agents, and advisors or what ever.

 

Texas falls in District 6 of the 12 FINRA Districts.  They are located at 12801 N Central Expressway #1050, Dallas, TX 75243, phone 972-701-8554.  The District Manager is Ms Erin Vocke and you can rest assured that she and her staff are well aware of this impending problem, www.finra.org/.  

 

Mr. Steve Harbeck is the President of Securities Investor Protection Corporation, SIPC, <http://www.sipc.org/.  Mr. Harbeck is my HERO!

 

Copies of the Investment News chart and or the p.8 from SIPC’s annual report can be obtained by calling me.

 

This is my editorial and I believe in what I wrote…..Bullish Bob Bagley aka Bearzilla

 

 mbrs: FINRA, SIPC

 

 

 

 

 

 

 

 

 

 

 

Sat, 09/17/2011 - 10:59 | 1679675 rambler6421
rambler6421's picture

I e-mailed the stock exchanges for market manipulation.  I received an e-mail from Pat Clem (from Finra).  E-mail them for market manipulation. 

 

The e-mail address is pat.clem@finra.org.

 

 

Sat, 09/17/2011 - 11:13 | 1679685 buzzsaw99
buzzsaw99's picture

finra is too busy helping big dealers run the old bait and switch market order scam, maybe next year.

Sat, 09/17/2011 - 11:19 | 1679690 fraud-fed
fraud-fed's picture

Nothing a few new rules can't fix. Of course, we'll make sure our friends won't be bothered by them.

Sat, 09/17/2011 - 12:40 | 1679853 WSP
WSP's picture

Nothing will be done about market corruption---the regulators are revolving door criminals who are just doing their "duty time" in the regulation deparment to earn their spots in the top offices of private companies that do the looting.  

Some people get excited when they hear about complaints being filed, but nothing is ever done.  Our financial system is institionalized fraud and corruption and the only criminals that ever go to jail are blue collar criminals that steal a pack of gum from the store.  If you steal others life savings that is fine, no problem---you just have to be part of the "club".

Sat, 09/17/2011 - 12:47 | 1679882 bid the soldier...
bid the soldiers shoot's picture

It seems to me the players/investors complain about manipulation when they are on the wrong side of the manipulations and are losing money.

When they're making money on the 'right side' of the manipulation, you don't hear a peep.

Sat, 09/17/2011 - 13:17 | 1679971 Ident 7777 economy
Ident 7777 economy's picture

 

 

Gee, shouldn't http://www.attackwatch.com be used for something like this?

 

 

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