REDUX on the LANDMARK SETTLEMENT

couple of questions here. what part of the settlement was "landmark"? and what exactly was "settled"? it seems that the further away from Wall Streets self-proclaimed landmark settlement we get, the more new revelations of continuing misdeeds pop up. the latest malfeasence consists basically of more of the same thing that the major Wall Street firms just agreed not to do anymore. Another "star" analyst being on the companies they cover payroll (Merrill Lynch's Phua Young), brokers 'mis'leading clients to certain mutual funds that they get paid better on even if the funds underperform (Morgan Stanleys entire sales force), and 'churning' of annuity contracts on unsuspecting customers including forged documents (Prudentials managers and salesmen). there have been other transgretions since the settlement but i think you have the idea.

So what has changed in how Wall Street conducts business? easy answer. nothing!

the day the settlement was announced by Mr. Spitzer and his able enforcers i watched and listened in absolute shock and awe (that was a great saying those white house guys thought of). the following is what i was thinking but was too numb to publish at the time. now may be a more appropriate time or maybe not, but heres what i was thinking then and still beleive today...

>>>>>>>>LANDMARK WALL STREET SETTLEMENT...even the announcement is tainted!

here are the sound bites and my thoughts on the wall street agreement . (4/28/03)
message wall street firms wont forget...because it didnt close down the business.
new disclosure on research reports...warning:this research report may be hazardous to your wealth.
reforms are more important than fines...for who? i'll take the money thank you.
firms now MUST monitor their own research...how novel. not only do they currently monitor their research they "tout" it, package it, email it all over the world, do interviews on CNBC, and use it to create other in-house investment products.
"reforms" to fundamentally change how wall street does business...HOW? big statement, little explaination.
firms must seperate research and investment banking...yeah right, wanna have a drink at the bull and bear?
analysts to shed job of being cheerleader? ok we'll be the mascots.
better monitor the firms monitors. the monitors will become the most powerful link in the chain.
investor protection hall of fame. spitzer wanted to be an athlete but he was too skinny. so he's creating a hall of fame for himself.
TRIANGULAR relationship b/t IB's, company CEO, and research analysts. sounds like RICO act stuff to me.
one days rise in mkt cap...citi's $400 million fine made up in todays trade.
why does this 'close' this period of fraud in the mkts? their were pretty strict rules before these new stricter rules.
we enter a new era today...grasso. an era of the bald square headed NYSE chief.
no guarantee of profit, just fairness. so if its fair and i lose money thats OK.
structural redefinition...that would be good but i see none of that on the table at the firms in question.
analyst is an analyst, and a banker is a banker. by jove i think youve got it.
restoration of public trust and confidence in a system we all aspire to be a part of?!?!? wow! are we full of ourselves or what?!
public customer comes first...bull! they dont generate enough revenue to come first.
research will be unbiased? customers of intermediaries will be held to the highest standards of ethics and moral reproach...wow.
investors not ib fees will come first in the process...no way!
how are the firms going to be able to comply with the changes if they dont split apart physically as well as financially and operationally? all the wall street firms must seperate their business segments...chinese wall does not satisfy the settlement agreement.
no admission of guilt or wrongdoing, no criminal penalties. whats the payback to the investor who has lost money?
big winner is eliot spitzer and his buddies.
largest fraud in corporate history. litigation wins to follow will rival asbestos and tobacco settlements combined.
how can wall street "afford" to operate under the newly announced system.
wall street is in the process of "touting" the settlement in order to promote itself once again.

the whole thing is a farce. END>>>>>>>>>

The only thing "landmark" about the settlement is the fact that the Wall Street biggies got away with the largest corporate fraud in the history of the modern era without being put out of business. if any small/regional brokerage firm committed the same misdeeds, i can assure you that there would have been no settlement and they would be selling real estate instead of stocks.

have a grateful day!
larry