A Very Bad Joke or...

3 posts / 0 new
Last post
pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
A Very Bad Joke or...

Ok, so I'm doing my morning check on "what's new", and hit this article on Bloomberg @ http://www.bloomberg.com/news/2011-06-28/investors-may-lose-as-congress-saves-money-on-adviser-oversight.html

"Investors May Lose as Congress Saves Money on Adviser Oversight"

Congress may hand oversight of almost 12,000 investment advisers to Wall Street’s self-funded regulator as a cost-saving measure. The price could be paid by investors.

The Financial Industry Regulatory Authority, deputized by the government to oversee brokers, is lobbying to replace the U.S. Securities and Exchange Commission as a regulator of registered investment advisers who manage about $40 trillion. Congress is considering the move as a cheaper alternative to increasing resources for the SEC, since Finra’s $877 million budget is paid by the brokers it regulates.

So what I'm trying to decide is: is this a really bad joke?  

Or is actually it a brilliant cost-saving measure as pitched, since that's basically what's happening now anyway?  -It both gets rid of the middle-man/SEC and "adds transparency" since it more closely mirrors what is already happening anyway? (sarcasm intended)

I kind of like the next quote:

“It’s a very bad idea to expand the notion of self- regulation,” said Denise Voigt Crawford, former commissioner of the Texas State Securities Board. “They’re supposed to oversee the activity of the industry, but they are industry.”

Geez, what a way to start the day!!

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2259
In the same vein...

Ok, so I couldn't resist. I was just looking at the USA Today (hardcopy) at breakfast, and saw the following headline on page 5B:

"Stocks rise as fears about new bank regulations are eased"

Too bad there's so much material out there for this thread topic...

jumblies's picture
jumblies
Status: Silver Member (Offline)
Joined: Jun 13 2010
Posts: 244
In summary: Investors want

In summary:

  1. Investors want the ponzi scheme because it makes them money
  2. The government wants the ponzi scheme because it saves them money

Would that be fair?

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments