CROOK ALERT!! MUTUAL FUND CONFLICTS AND CROOKED PRACTICES
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8-4-09 NYT SEC SAYS FLASH TRADING UNFAIR AND SEEKS TO BAN IT
- SEC Seeks to Ban Flash Trading Because it Gives an Unfair Edge to Wall Street Banksters
The Securities and Exchange Commission will seek to stop a trading technique that enables some large banks and hedge funds to peek at investors’ stock orders before they are sent to the broader marketplace, Senator Charles E. Schumer said on Tuesday.
6-19-09 SEC Looks at "Dark Pools" and Short Sales
- S.E.C. Chief Looks at ‘Dark Pools’ and Short Sales - DealBook Blog - NYTimes.com
Large institutional investors like banks, pension funds and mutual funds use such systems when they buy and sell large blocks of shares. But dark pools create a lack of transparency that could cause suspicion and speculation in public markets.
SENATE REPORT FAULTS SEC HEDGE FUND INVESTIGATION OF ALLEGED INSIDER TIP BY JOHN MACK, MORGAN STANLEY CEO
- SEC investigation of hedge fund botched.
Political influence alleged in calling off SEC dogs from Pequot and John Mack, Morgan Stanley CEO
SEC INVESTIGATING IMPROPER INSIDER TRADING BY MERRILL, OTHERS, WHICH HURTS MUTUAL FUND INVESTORS
Fidelity Fined $3.75 million over improper gifts (bribes) to it's traders who are supposed to be acting on behalf of mutual fund investors
Conflicts and Criminality Rife in Mutual Funds and Investment Banking
Prudential Financial, the life insurance comapny, agreed yesterday to pay $600 million to settle charges with federal and state regulators that one of its units engaged in inappropriate mutual fund trading.
The payment, the second-largest against a financial institution over the illegal practice, according to the New York Times, may bring an end to a three-year investigation [Very doubtful. It may bring an end to the investigation but not to the shady practices and conflicts of interest!] into market timing, late trading after markets close and other illegal, shady, questionable practices and conflicts of interest that have been found to be common among many if not all the big names in the industry including Merrill Lynch, Citigroup, Morgan Stanley, Bank of America, Fidelity, Edward D. Jones, Putnam, Smith Barney, Strong Financial Corporation, T. Rowe Price, J P Morgan Chase and others.
For the article in this morning's New York Times on the big Prudential settlement, click on the link below.
The two best books for mutual fund investors are
"Unconventional Success--A Fundamental Approach to Personal Investment" by David F. Swenson. Simon and Schuster 2005.
" Winning the Losers Game" by Charles Ellis, McGraw Hill.
Both authors question whether buying individual stocks is appropriate for most people. And both recommend investing in low cost domestic and international equity mutual funds such as the index funds offered by Vanguard. In addition, a portion of a balanced portfolio may/should also include an intermediate term U.S. government bond fund and a REIT (real estate investment trust) fund as well.
SURVIVAL OF SOCIAL SECURITY ON THE BALLOT IN NOVEMBER!
President Bush told the Wall Street Journal that privatization of Social Security is on his agenda for next year.
FIDELITY MAKES RESTITUTION FOR IMPROPER GIFTS ACCEPTED BY ITS TRADERS
- Fidelity Makes Restitution in Gifts Case - New York Times
BOSTON, Dec. 21 (Reuters) — Fidelity Investments said Thursday that it would pay more than $42 million to its mutual funds after a review found that its traders had “misdirected” business to brokers who gave them expensive gifts.
Spitzer Sues UBS Over Fee-based Brokerage Accounts
- Spitzer Sues UBS Over Its Fee-Based Brokerage Accounts - New York Times
The New York attorney general’s office accused UBS of shifting customers into fee-based accounts unsuited for infrequent traders.
Fund Manager Accused of Illegal Trading
- Fund Manager Accused of Illegal Trading
Federal regulators sued a hedge fund manager in Dallas on Tuesday, accusing him of making more than $6.3 million through illegal trading involving "naked" short sales of dozens of companies. The SEC sued Edwin Buchanan Lyon IV, the managing partner
Jeffries Group Pays $9.7 Million for Improper Gifts to Influence Fidelity Traders
- Jeffries Brokerage Group to Pay $9.7 Million for Improper Gifts to Fidelity Traders
Fidelity faithfully serving its mutual fund investors!
BUSH TELLS WALL STREET JOURNAL PRIVATIZATION OF SOCIAL SECURITY STILL ON THE AGENDA
- Prudential Financial Settles and Admits to Criminal Wrongdoing
Prudential is one of a long list of prominent for-profit mutual fund companies and leading investment banks that have paid huge fines for illegal trading as a result of investigations begun by New York attorney general Elliott Spitzer which uncovered
Spitzer, SEC reach largest settlement ever
- Bank of America and Fleet Boston Settle for $675 Million
Attorney General Spitzer today announced a $675 million settlement with two leading financial service companies linked to illegal trading practices in the mutual fund industry. The settlement with Bank of America Corp. (BOA) and FleetBoston Financi
JP Morgan Chase Accused of Aiding Enron in Structuring Illegal Transactions
Winning the Loser's Game
- Winning the Loser's Game
Tired of playing the loser's game? Charley Ellis's "Winning the Loser's Game" is one of the best recent books on individual personal investing.
9-10-06 NYTimes Check Your Mutual Fund's Proxie Votes
- How to Find Your Mutual Fund's True Colors by Gretchen Morgenson
While funds are supposed to protect their shareholders, the sorry fact is they often have lucrative relationships with companies whose shares they own on behalf of their clients. These cushy ties can be jeopardized if a fund votes against management.
Unconventional Success--Book Review
- Brief Review of Swenson's "Unconventional Success"
"Unconventional Success" is, in my estimation, the best recent and possibly the best-ever book for individual investors.
VANGUARD GROUP WEBSITE
- Vanguard Group Website
Vanguard provides no-load, low-cost, tax-effective index mutual funds.
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The SEC is also looking into "dark pools" of funds which provide no public access to trades which tends to undermine faith in the fairness of markets according to Mary Schapiro, head of the SEC. (How many people have faith in the fairness of public markets?)
Ralph Deeds says:
4 months ago
Flash trading which is analogous to betting on a horse race after the finish is another reason why ordinary investors in individual common stocks are at an unfair disadvantage vis a vis the Wall Street Banksters and hedge funds. It the SEC succeeds in banning flash trading, it won't be long before the banksters will find other ways of screwing the little guys in order to keep paying their multi-million dollar bonuses.