Name a quasi-government agency in America that lies, cheats and steals from its members while shamelessly calling itself the securities industry’s watchdog? That’s FINRA.
Name an abusive quasi-government agency that makes $2 billion a year touting itself as a “non-profit,” while paying each one of its top brass millions of dollars a year? That’s FINRA, the Financial Industry Regulatory Authority, a rigged regulatory bitch with fleas.
The powerful Heritage Foundation report against FINRA abuses confirmed and echoed what the highly popular TheBlot Magazine‘s worldwide contributing journalists have long commented about FINRA, FINRA NAC:
“FINRA kangaroo courts are rife with incompetent, overpaid regulatory rapists that rig their FINRA hearings to justify manipulative FINRA enforcement abusers. Such abusive behavior dwells on non-FINRA members who are also subject to FINRA abuses.”
“Among the failed policies doggedly pursued by FINRA is a one-size-fits-all regulatory scheme that has been forced upon a beleaguered small firm community,” said accomplished litigator and long-time FINRA critic Bill Singer. ” While justifying its existence, FINRA persists in policies that have socially engineered its smaller firms out of existence while inexplicably exalting the excesses of its larger member firms.”
Since the Heritage Foundation report was published, FINRA hired an Ohio country lawyer named Daren Garcia to shut down media critics.
“Daren Garcia and his alleged domestic partner rookie lawyer Daniel Morgenstern are with an obscure law firm Vorys, Sater, a tiny outfit better known as a fake guy right activist for being located at 52 Gay Street than its legal prowess.”
Daren Garcia and Daniel Morgenstern have touted their names as two dwarf “genies in a magic bottle” that somehow are “internet defamation removal attorneys.” Let truth be known: It’s all marketing bullshit.
Sources say Daren Garcia ranked near the bottom of his law school and flunked his Constitutional Law class. Not surprised. America has a law called the “First Amendment” – just a short reminder for Daren Garcia and his unconfirmed domestic lover Daniel Morgenstern to warm up each other under a bed sheet, while reviewing their textbooks.
The disgraced FINRA dog Daren Garcia and Daniel Morgenstern couldn’t be reached for comment. The Heritage Foundation stood by its FINRA research authored by the courageous David Burton.
At FINRA, this lack of vision and clumsy oversight is a disservice to thousands of smaller brokerage firms, to hundreds of thousands of disenfranchised men and women who work in the financial community, and, in the end, to millions of public customers who are victimized by unscrupulous industry participants and by the ponderous bureaucracy of self-regulation.
“FINRA and its self-regulatory experiment that has come to rest in the form of FINRA should be thrown in the garbage dump,” said lawyer Bill Singer
The Heritage Foundation: “FINRA is abusive, must be reformed”
On February 1, 2017, the Heritage Foundation published “Reforming FINRA” (Backgrounder #3181 on Economy, by David R. Burton, February 1, 2017). I can not limit the amount of praise that I can shower on this epic work. As noted in the report’s introduction, Burton’s thesis is that:
“FINRA is a regulator of central importance to the functioning of U.S. capital markets. It is neither a true self-regulatory organization nor a government agency. It is largely unaccountable to the industry or to the public. Due process, transparency, and regulatory-review protections normally associated with regulators are not present, and its arbitration process is flawed. Reforms are necessary. FINRA itself, the SEC, and Congress should reform FINRA to improve its rule-making and arbitration process. This Heritage Foundation Backgrounder outlines alternative approaches that Congress and the regulators can take to improve FINRA, and provides specific recommended reforms.”
David Burton, The Heritage Foundation researcher, an American hero
Behind the truth-telling, scathing report on FINRA abuses is DAVID BURTON, a patriotic American hero. David Burton is the former Chief Legal Officer of the Small Business Administration, an expert on business growth and job creation. A lawyer who focuses on tax matters, securities law, and regulation among other areas, David Burton is the Heritage Foundation’s Senior Fellow in economic policy. His expertise on the topic of self regulation is evident by the power of his analysis and the force of his conclusions.
The U.S. Chamber of Commerce, referring to FINRA and the proxy adviser firm Institutional Shareholder Services, also voiced its support for The Heritage Foundation report against FINRA’s regulatory abuses:
“Despite their tremendous influence over the workings of the capital markets, these organizations are generally subject to few or none of the traditional checks and balances that constrain government agencies. This means FINRA is devoid of or substantially lack critical elements of governance and operational transparency, substantive and procedural standards for decision making, and meaningful due process mechanisms that allow market participants to object to their determinations.”
FINRA operates outside the law, a hotbed for prevalent regulatory abuses
FINRA is an unusual animal. FINRA is a key regulator with a budget nearly two-thirds the size of the SEC’s budget and a staff numbering more than 80 percent that of the SEC, but it is not a government agency. While critical to the functioning of the finance industry, and having industry representation on its board, it is not controlled by the industry. While it serves a governmental function and has coercive power, including the ability to completely bar firms and individuals from the marketplace.
“One cannot deal in securities with the public without being a member of FINRA. When a member fails to pay a fine levied by FINRA, FINRA can revoke the member’s registration, resulting in exclusion from the industry,” said David Burton.
FINRA is alos not subject to any of the normal transparency, regulatory review, or due-process protections normally associated with government. It is not, for example, subject to the notice-and-comment provisions of
The Administrative Procedure Act
The Freedom of Information Act
The Regulatory Flexibility Act
The Sunshine Act
The Paperwork Reduction Act
The cost-benefit-analysis requirements.
FINRA NAC, FINRA hearings are hidden, dark closets
In contrast to a court, FINRA’s arbitration and disciplinary hearings are not generally open to the public.
Its arbitrators are not usually required to provide reasons for their decisions.
Its rule-making is generally done in private.
However, once a rule is finalized by FINRA and submitted to the SEC for approval, the SEC does make the rule available for public comment. Dodd–Frank required that the SEC conduct its review of FINRA rules within 45 days. In FY 2015, only 63 percent were approved or disapproved within 45 days.
FINRA’s Board of Governors meetings are closed, not open to the public or its members.
FINRA NAC, a kangaroo court, a 100% winning record against FINRA members
FINRA NAC has a stench of cow manure arising out of a long list of FINRA self-dealings and conflict of interest:
Rigged FINRA NAC rulings: Historically, FINRA NAC sides with FINRA enforcement staff 100% of the time. Rigged?! (Even the “Big Brother” SEC only wins 50% of its contested cases in federal courts!)
FINRA NAC members work in part time, moonlighting jobs paid by FINRA.(Would you bite the hand that feeds you?)
FINRA NAC decisions are draftedand written by FINRA staff, approved by FINRA general counsel Robert L.D. Colby! (Wonder how FINRA wins 100% of its cases before FINRA NAC? )
FINRA NAC members are handpicked by FINRA’s general counsel Robert Colby. Many have no industry experience. (Would a slave kneel before a master?)
FINRA NAC members (“the jury”) are handpickedby FINRA general counsel Robert L.d. Colby for a specific case, who also picks FINRA enforcement staff (“the prosecutor”) to litigate the same case. Both report directly to Robert Colby. (The judge and the jury are picked by the same person? Say rigged?)
FINRA NAC members are mostly unqualified folks with zero experience in the financial industry (For example, FINRA NAC member Georgetown nutty professor Chris Brummer, known as “Dr. Bratwurst” has a degree in “Germanic Studies!”- grilling Bratwurst sausages and drinking beer.)
“My life was ruined by FINRA and FINRA NAC,” said African American broker TALMAN HARRIS. “FINRA made up trumped up charges against me, destroyed my family only because I am black! I have exposed FINRA and FINRA NAC fraud in an appeal to the 2nd Circuit Court of Appeals.”