High Noon Approaching for Cuomo, Charles Schwab
N.Y. AG Cuomo is relentless. Probably the only "freedom fighter" in public office we have today. Bilking money from people for pure profit motives once upon a time in this country was illegal. Maybe it soon will be again.
Sales tactics like those employed by our banking industry were once relegated to back room, smoked filled, blue suede shoe salesmen. Today it is a profession out in the open with sharks dressed in Armani suits whose prestige is predicated on the number of people they can take advantage of. In fact, there must be a college course somewhere for this as these Wall Street Banksters want you to have a college degree. What ever happened to Basket Weaving 101?
In one exchange between a Schwab broker and client that was reviewed by the Journal, a customer says: “You know, I’m not trying to make a ton of money. I just want to play it safe.” The broker responds: “The hardest part of this auction is getting into it. That is the tough part. Getting out is easy as just selling.” But when the market collapsed, Schwab clients were stuck with $787.8 million in auction-rate securities.
From the WSJ Law Blog
Auction-rate securities are long-term debt instruments with attributes of short-term securities because they are resold with new interest rates in periodic auctions. The $330 billion market’s collapse, which came to a head when market makers stopped stepping in as buyers in early 2008, caused investors billions of dollars of losses.
Several large Wall Street firms that had underwriting operations, including Merrill Lynch & Co., Citigroup Inc., J.P. Morgan Chase & Co., UBS AG and Goldman Sachs Group Inc., have settled with regulators, agreeing to buy back more than $60 billion in auction-rate securities from customers.
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This round table of Black Knights would put fear into even King Arthur's legions. In the words of our publisher...WAKE UP AMERICA!
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