After evidence of another SEC broad-based regulatory failure for not investigating another potential fraudulent foreign IPO listing entity (Chart), we have to provide some highlight commentary to the complete and utter lack of any consequences for the SEC Commissioner, Mary B. Oblige, and her long serving staff in not asking for apparently, or completing any official deep reviews of fishy listing documents. Fake it till you take it!
The CPP investment board and AGF never saw this either, apparently. Ground Zero is the enforcement of regulatory rules, without that, it’s Bob Ponsi-land for any and all global financial terrorists. List and take, list and take… until their is no “take”. When that day arrives, who knows, but what it is surely to continue for a while. Why that day of free market justice has still not arrived after instance, upon instance, of fixing – funny enough, is a symptom of the real problem. Why not? It’s very complex. But, it all starts with the absence of independence from Owners vs. Management.
In a nut shell – institutions take significant fees for diligent and prudent capital management of large sized investment pools; not simply playing or speculating with investors money without recourse (restitution of lost capital) or providing any risk enforcement, fiduciary responsibility, or duty of care whatsoever. Not replacing managers by voting institutional share blocks but instead with your shares, attempt to maintain the status quo of stock buy-backs, legal opinions to conduct Repo 105, off-balance sheet accounting gimmicks, or any true form of a substantive due diligence investment process.
What it means simply is this: a market where what was instilled as process that was supposed to be a self serving, self-correcting system of market views has been abrogated. Replaced by a conflicting system, absent of self-correcting forces of supply and demand, and are in essence, simply made up (fictional) economic numbers sustained by printing, not earning, money.
What we have is the worst of one world (the 99%’s) and the best of the other world (the 1%’s) – for he who has the job at the Table of Thirteen decides all supply and all demand and therefore, the price of everything.
State-ism vs. Free-ism
It seems that ANY advice you pay for is not “worth” the price charged. For it requires zero intelligence to match a fixed, rigged – or fudged benchmark. Index Funds still charge too much for doing very little but it is a step in the right direction considering the above facts from Muddy types…. MF&^%%$ Global, Sino-Forrest (another Muddy effort to disclose), STandford & Son, Maddov, and many more to come.
Parliament of Whores
So we vote them in and vote some out. Politicians, whoever is in, then changes the laws to whatever they are “told to write“. Seemingly, without any consequence of backlash – other than just wait until the next election. Then, the Supreme Court pipes down and DOJ is suddenly AWOL for any bankster prosecution other than Mr. Co=resign, whipping boy or paperboy… only slacks that are of a golden hue really know.
So the next time you think of big managers of institutional capital, the Blackpaper.scissors, the Fauxguards of Boston, or the Infidelity types, think they are all irresponsible players in managing the stakeholders capital. One only has to look at the largest losers of any “blowed up good” listed security and you will inevitably find an absent institutional ownership representative who is now, and forever more, stuck holding the proverbial bag.
It’s Our Money. Vote It or We’ll Move It.
Time to hold the institutional investment firms accountable (which means execution of YOUR stakeholders rights) because they hold positions of tremendous influence, yet provide very little in policy change, shareholder activism, allowing obvious and glaring holes in regulation to continue through the audit committees, and generally, they aid and abet in providing an environment of poor risk controls, and ultimately, systemic under-performance for their “Clients” value for the money.
When the news hits, we see very little retribution, fines, or charge backs. Very little capital seems to move out as well. No real penalties are even handed out, no slap on the wrists (even fraud), because, well.., it’s not OUR money – it’s YOUR risked capital. Time to be heard, perhaps even scream, is upon us. These people (money machines), are responsible for managing your Pension plan, but are controlled by Banksters who are allowed uncontrolled pilfering without loss of market participants.
Institutional mismanagement void of any duty of care is the new normal.