Category Archives: Ethics

Inevitable Ineffective Banking Regulation

I am mystified at why people might be outraged or surprised that the Federal Reserve does a poor job of overseeing banks.  The Fed is an overstaffed bureaucracy.  Overstaffed bureaucracies always tend toward consensus and non-confrontation. I know this from my days of working as an actuary inside an overstaffed life insurance company, and applying […]

Not Apt, Not Teed Up, Not Going

Okay, let’s run the promoted stocks scoreboard: Ticker Date of Article Price @ Article Price @ 6/27/14 Decline Annualized Splits GTXO 5/27/2008 2.45 0.022 -99.1% -53.3%   BONZ 10/22/2009 0.35 0.001 -99.8% -72.8%   BONU 10/22/2009 0.89 0.000 -100.0% -85.1%   UTOG 3/30/2011 1.55 0.000 -100.0% -92.3%   OBJE 4/29/2011 116.00 0.069 -99.9% -89.7% 1:40 […]

Self-Regulation in the Financial Markets: My Thoughts

Self-regulation: let’s think about a person.  Can he regulate his own life on his own?  Of course he can.  But will he? The same is true of markets. SROs can be effective if the culture is good, and people are willing to take actions against friends.  But an SRO can also develop a culture that has […]

Self-Regulation in the Financial Markets: Exchange Issues, Market Structure, and Investor Protections (Part 3)

US System of Self-Regulation through SROs: Strengths and Areas for Reform  Questions   What are the most substantial/significant contributions of the current SRO system in the United States? What areas present the greatest need for reform? How can the private versus “state actor” functions of non-exchange SROs be reconciled?   David BlassChief Counsel, Division of […]