Regulatory Wire: Goldman Sachs opens door for the fiduciary standard; Senators pile on to the cause
Jail time for those who violate the standard? There's a new tone in Washington, D.C.
Stephen Winks
THE TRUTH IS FINALLY GETTING THROUGH AND CONGRESS IS ACTUALLY LISTENING
Finally the compelling case for the consumer, supporting the fiduciary standing of brokers and the reliability of advice in the best interests of the consumer. The misinformation of the brokerage industry, FINRA and SIFMA have clearily established their interest is not in the protection of the consumer and public trust but to protect the best interests of the brokerage industry.
The question is whether Congress will continue to put the best interest of the brokerage industry ahead of that of the consumer, who they are charged to protect? It looks like Consumer Protection, fiduciary standing for brokers and the best interests of the consumer actually has a real shot at a fair hearing.
With mid term elections comming up, woe be it Congressmen who thwart consumer protection by withholding leglislative authority from the SEC to establish, regulate and enforce the fiduciary standing of brokers.
SCW
Brian J. Donovan
Opacity reduces scrutiny and confers power on the few with the ability to pierce the veil. Although derivatives have indeed become extremely complex, in actuality, they are as old as the idea of finance itself. The credit derivatives market should borrow a thought from Leonardo: “Simplicity is the highest form of sophistication.”
For a clearer understanding of subprime mortgage-backed credit derivatives, visit:
http://donovanlawgroup.wordpress.com/2010/02/19/how-credit-derivatives-brought-the-u-s-economy-to-the-brink-of-a-second-great-depression/
