Courtesy of Larry Doyle of Sense on Cents
Is Wall Street the center of all the problems in America?
Many of those involved in the “Occupy Wall Street’ demonstrations may think so. I strongly believe that they are wrong.
Those with a keen ‘sense on cents‘ understand that Wall Street does embody part of our national problems.
They also appreciate that the stench that overhangs Wall Street is far stronger and consistent with the incestuous odor emanating from Washington.
As the slow motion train wreck which is our nation’s economy continues to play out, I exhort those currently railing on Wall Street to spend a greater amount of time focused on Washington.
Those feeling disenfranchised may find it convenient to cast aspersions at the big bad banks. There is no doubt that the financial industry deserves much of the derision directed its way. The fraudulent nature of selected business practices on Wall Street deserve to be fully exposed and prosecuted. Firms and individuals should be held accountable.
All this said, the MUCH BIGGER story is exposing the incestuous nature of the relationship between Wall Street and Washington from BOTH sides of the political aisle.
The shoddy if not illicit business practices on Wall Street were facilitated by regulators and legislators whom had been ‘captured‘ by the industry. This ‘capturing’, or as Sense on Cents entitles it, this Wall Street-Washington Incest, has gone on for a long time. That fact leads me to ask the following question:
1. Who is backing the ‘Occupy Wall Street’ movement?
2. Who is looking to profit politically from the civil unrest centered in this movement?
3. Is there any doubt that this movement is promoting class warfare?
Wake Up, America!! The fact is politicians from both sides of the aisle have largely sold us down the river while they themselves have willingly and lavishly fed at the trough provided by Wall Street. You don’t think so. Then I ask you the following questions and am happy to provide links to stories and materials supporting this premise.
1. What is the nature of President Barack Obama’s relationship with Franklin Raines and James Johnson, the executives who effectively plundered Fannie Mae? Read on…..Sense on Cents/Franklin Raines,Sense on Cents/James Johnson
2. Who encouraged Washington to ‘roll the dice’ on sub-prime mortgage originations and was engaged in a deep relationship—literally and figuratively—with those at Freddie and Fannie? None other than Barney Frank. Read on….Sense on Cents/Barney Frank
3. Who really regulates Wall Street? Merely the SEC? Do not be so naive. Wall Street to a very large extent is a self-regulated industry. The SRO is an entity known as the Financial Industry Regulatory Authority (FINRA). How is it that President Obama appointed Mary Schapiro, the former head of FINRA, to resurrect the SEC? Does it look like a revolving door to you? It does to me. Especially when you learn that the new head of FINRA, Richard Ketchum, came from….you guessed it…the SEC. You do not have insiders clean up a mess unless you prefer to keep things quiet. Read on…..Sense on Cents/FINRA………Sense on Cents/Mary Schapiro….
4. Might you be interested in learning about what I have defined as the greatest scandal on Wall Street? Madoff, right? Nope. Allen Stanford, of course, right? Also wrong. Wall Street CDOs? Three strikes.
In my humble opinion, Wall Street’s greatest scandal perpetrated on tens of thousands of ordinary, average, everyday Americans is encompassed in a market segment known as auction-rate securities. These supposed ‘cash equivalent’ securities were blatantly misrepresented by Wall Street. Going on more than three full years tens of thousands of our fellow citizens are still unable to access their cash. How much cash? Try somewhere to the tune of $100 BILLION. Those in Washington have done little to help our fellow citizens retrieve their cash compared to state regulators. Read on…..Sense on Cents/Auction-Rate Securities
5. Last but not least, while many a politician on the left side of the aisle will clearly look to profit politically from the discontent centered in the ‘Occupy Wall Street” movement, I exhort people to review the campaign contributions of none other than Senator Chuck Schumer (D-NY), Senator John Kerry (D-MA), former Senator Chris Dodd (D-CT), and many more.
I define people who have lined their pockets with Wall Street money on the one hand only to join forces with those who would rail on Wall Street with the other as FAKERS!!
I am a registered Independent. My allegiance is to our nation and the virtues of truth, transparency, and integrity. As a Wall Street veteran I make no excuses for bad practices within the financial industry. The fact is, though, in order for our country to move forward we need a healthy Wall Street which can provide the needed capital to drive business and job growth.
I do not believe that those who have compromised themselves in the past by engaging in what I define as Wall Street-Washington incest are capable or qualified to lead our nation. I hope the extensive links provided here along with other written work compiled over the last three years will help direct the focus appropriately.
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Here’s Larry’s follow-up article:
What Should ‘Occupy Wall Street’ Demand?
I received a call yesterday from a reporter from a highly regarded periodical inquiring about my recent commentary, ‘Occupy Wall Street’ Should ‘Occupy Washington’.
Having had a number of previous discussions with this reporter, I welcomed her question as to what I thought the OWS movement should look to achieve or demand.
I prefaced my comments by stating that I hope civil unrest and random violence do not come from these demonstrations. America needs a lot of things but we certainly do not need riots.
We discussed the seeming lack of leadership within the movement. I expressed my concern that I believe the Democratic Party supported by its friends in labor unions may look to hijack the movement.
From there we discussed the fact that promoting platitudes and wanton generalities highlight that the movement would seem to have a limited understanding of the real inner workings of Wall Street and its incestuous relationship with Washington.
To that end, she asked what three proposals I would put forth to advance this movement and the pursuit of our Sense on Cents virtues of truth, transparency, and integrity. Never one to be bashful when it comes to elevating these virtues, I offered the following:
1. Compel the Wall Street self-regulator FINRA (Financial Industry Regulatory Authority) to open its books and records. The OWS movement and all of America would learn a LOT about the incestuous nature of the relationship between Wall Street and Washington if FINRA were forced to provide real transparency as I have called for so often. Starting in early 2009 and repeatedly since then I have stated unequivocally that FINRA Must Open Its Books and Records. FINRA’s own member firms called for real meaningful transparency from this self-regulatory organization and largely received lip service from FINRA’s board in response.
2. The OWS movement would do America a favor if it called for a thorough exposition of the scam that encompassed the auction-rate securities market. OWS and America have approximately 100 billion reasons to pursue this transparency, that being the approximate dollar value of the ARS which remain frozen in investor accounts. Please recall that ARS were sold as ‘cash surrogates’.
3. Why should OWS and America demand accountability on points 1 and 2? For the very simple reason that Wall Street’s incestuous partners in Washington have largely failed to perform in properly regulating Wall Street despite efforts and overtures made by many individuals and organizations, including the Project on Government Oversight. For more on this front, please access, Sense on Cents/POGO-FINRA.
Why might those in Washington fail to pursue their counterparts on Wall Street? Do you think the campaign contributions and other means of support provided by Wall Street for those in Washington on both sides of the aisle may impede our pursuit of transparency? You think?
I thank the aforementioned reporter for pointing me in the direction of OpenSecrets.org Center for Responsive Politics,
the nation’s premier research group tracking money in U.S. politics and its effect on elections and public policy. Nonpartisan, independent and nonprofit, the organization aims to create a more educated voter, an involved citizenry and a more transparent and responsive government. In short, the Center’s mission is to:
Inform citizens about how money in politics affects their lives
Empower voters and activists by providing unbiased information
Advocate for a transparent and responsive government
So let’s check in on a few of our Washington heavyweights and see just how deeply in bed they are with the crowd on Wall Street by referencing Open Secrets.org great work.
- Chuck Schumer (D-NY)
- Spencer Bachus (R-AL)
- Barney Frank (D-MA)
- Chris Dodd (D-CT)
- Barack Obama
- John Boehner (R-OH)
Please review these links and see how much and how often Securities and Investment Firms have provided backing for their incestuous partners in Washington. Anybody for meaningful campaign finance reform? How about term limits?
What do you say we just start with a little bit of transparency and a healthy dose of the truth?
The stench of this incest is overwhelming.
Questions, comments, constructive criticisms always encouraged and appreciated.
