FINRA is the largest independent securities regulator in the US. Our chief role is to protect investors by maintaining the fairness of the US capital blah blah blah. Oh, come off it.
The largest what securities regulator? The largest independent securities what?
DB misled investors by selling MBS with incorrect delinquency data.
The disclosure said they were using the more conservative method, which showed 8% delinquency, but in reality this calculation was the more optimistic method. The true calculation was 24% delinquent – at issuance!
DB would have made a few million selling these deals. The fine: $7.5 million. Such is business risk. The losses to the principals would be two orders of magnitude larger.
Without civil lawsuits or SEC followup, it’ll be quite hard to feel at all fraudulent optimistic about any rapid return of buy-side confidence. If you are feeling conscientious, here is the pointlessly ponderous ruling.
A safe little bet: screwing around with delinquency levels will turn out to be a commonly used artifice of fraudsters optimists. The US Govt seems to be trying it out too.
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FINRA is a joke. I mean how can you have any faith in an organization when Bernie Madoff was a vice chair of its predecessor the NASD. I also wouldn’t hold my breath on meaningful action from the SEC. Mary Schapiro, the current head of the SEC, was chair and CEO of NASD and then FINRA from 2006 to 2009 right during the nastiest phase of crap securities trading leading up to the housing bubble bust and the meltdown.
Was that a “Lucky Jim” reference?
Certainly was. One of my favourite pieces of invective. Probably wasted on FINRA; I can’t keep using it.