Tag Archives: Wall Street

The Wall Street Merry-Go-Round Revolves Again!

Well, while many of us notice, and many of us care, our opinions matter not! President Trump continues to astound citizens with his about-face on Wall Street, now welcoming them with open arms and he’s filling the White House with former TBTF executives and those who defend them.
The revolving door which exists in government and on Wall Street, where the government sends key individuals to government; they serve in the Department of Justice, the Treasury,  the Securities and Exchange Commission (SEC),  about which I’ve commented many times, just goes on. They serve in a government position knowing that their real reward is coming full circle – they come back home to Wall Street or serving Wall Street via the law firms which pander to them and reap huge financial rewards. Many of us believe that these golden parachutes open the door to placing even more financial insiders in government who in turn are then more favorable to their former Wall Street bosses.

Should We Welcome Back Wall Street?

A recent New York Times Sunday Review featured an article by my good friend, William D. Cohan, author of The House of Cards and the forthcoming Why Wall Street Matters. The article, Welcome Back Wall Street, points out President Trump’s vilifying Wall Street throughout his campaign and his present about face- which is now welcoming Wall Street’s “financial guidance” with open arms.
William (Bill) pointed out that at a recent Strategy and Policy Forum meeting, the group’s chairman and billionaire co-founder of the Blackstone Group, Stephen Schwarzman, was seated to the right of Mr. Trump with Jamie Dimon, the chairman and chief executive of JPMorgan Chase, directly across from him.
Mr. Trump, whose intentions are to “modify” (read gut) Dodd-Frank, was quoted as saying, “There’s nobody better to tell me about Dodd-Frank than Jamie,” … which according to Bill may “presumably mean that there was nobody better to help dismantle Dodd-Frank than Jamie.”

Trump’s Gifts to Wall Street Threaten Retirees—and Robots


In the wake of the financial crisis, a slew of so-called robo-advisors promised consumers a fully automated version of money management that purports to remove human error—and avarice—from the equation. Instead of a human broker making decisions about how to invest your money, companies like Betterment and Wealthfront let algorithms do it. Experts have speculated the fiduciary rule would benefit robo-advisors by making the compliance costs too great for money managers to justify holding onto smaller clients. Robo-advisors that can perform much the same function at a lower cost would likely gobble that business right up.

In a 2015 Congressional hearing, then-Labor Secretary Tom Perez repeatedly cited Wealthfront as the way of the future. “They have a platform that enables them to lower their fees, operate as a fiduciary and do well by doing good,” Perez saidat the time.

“Today’s announcement of a rollback or freeze on some of those rules probably will shrink the market for robo-investing,” says former California state senator Sam Blakeslee, president of the broker-dealer Blakeslee & Blakeslee.

“This is a sad day for individual investors. Repeal of the fiduciary rule would imperil the retirement savings of millions of Americans,” Jon Stein, founder and CEO of Betterment, said in a statement. “Repeal means favoring the bottom lines of the financial services industry over the American people, who deserve financial transparency and honesty.”

Are robots coming to take investor jobs on Wall Street?

The robots are rolling forward with a full-frontal assault to capture Wall Street’s vast investment fees and commissions.

More investors are warming to the cold, steely embrace of the increasingly sophisticated, low-cost automated robo-advisers. The primary reason is to save money on those fees and charges.

Bots are squeezing their flesh-and-blood competition and threatening the jobs of thousands of human brokers in the $20 trillion US wealth management business.

Nearly one in three investors says these machines are superior at picking stocks and lessen their risk, and almost as many say the machines are better at selecting investments for retirement than human brokers, according to a new study of US investors by market research and consulting firmSpectrem Group.

Read on.

Bernie Sanders On Donald Trump’s Actions on Wall Street Reform: ‘This Guy Is A Fraud’


Tell it like it is, Bernie!

Nancy Pelosi’s False ‘Wall Street’ Denial


Donald Trump is putting Wall Street elite in charge of America’s economy

As Gotham continues…The fox in charge of the henhouse… File this article under smh….

In announcing the appointment of Carl Icahn as his new adviser on regulatory reform, President-elect Donald Trump characterised the Wall Street legend as “one of the world’s great businessmen.” By Trump standards, it was a minor mischaracterisation, one that confused the Main Street world of business, where value-adding goods and services are created and sold, with the trading, dealmaking world of finance on Wall Street.

Such confusion is understandable. For if anything has come to characterise American capitalism over the past 30 years, it has been the financialisation of business. Whereas top executives of America’s biggest corporations once spent their time worrying about products, customers, employees and the communities in which they operated, today they focus on maximising shareholder returns through clever feats of financial engineering. Executives who embrace this financialisation are handsomely rewarded with tens of millions of dollars in bonuses and stock grants. Those who don’t are fired.

Read on.