The SEC is NOT Your Friend

Most people think the SEC is an independent government regulatory body that looks after the best interest of the public.

At least that’s how it was in the beginning.

During the heart of the Great Depression, in 1934, Franklin Roosevelt founded the US Securities and Exchange Commission (SEC).

It was designed to be an independent government agency to protect investors by enforcing securities laws…a noble cause, indeed.

It followed the path of the Glass-Steagall Act of 1933 which separated banks, brokerage firms and insurance companies from doing business together.

And that was because their collusion caused the Great Depression.

The laws worked exactly as intended.

Both agencies helped keep corruption under control and there were very few large bank failures and no financial panics.

However, in 1999, Bill Clinton signed a law to repeal neuter the Glass-Steagall Act, opening the floodgates for the biggest financial mergers in history.

If you look back since 1999, you’ll see the destructive wave that the big banks have left in their path.

And since then, the SEC has been infiltrated and controlled by numerous Wall Street crony capitalists.

 

The SEC

 

Today, instead of enforcing securities laws they conveniently look the other way when one of the boyz in the “Club” makes a boo boo or needs to dump a lot of their own “insider” stock.

Case in point.

Back then, SEC commissioner, Robert Jackson Jr, “Scolded” Wall Street CEO’s who sold their companies’ shares after authorizing a stock buyback program.

SCOLDED?

Are you kidding me?

When an executive does a buyback program, they’re suggesting that the stock is cheap.

The media cheers and you join the crowd buying the stock as it rises.  (Sound familiar?)

It’s not right for an executive to dump his shares to an unsuspecting public during a buyback program.

It’s fraud.

Yet the SEC retaliated by “scolding them.”

Unfortunately, in today’s world the SEC isn’t even “Scolding Them.”

Instead, IF they catch them in the act of financial crimes, they hit them with a few billion in fines.

And to the Wall Street Boyz gladly pay the fine considering it a license fee (bribe) so no one ever gets charged or sent to jail.

I don’t know whether to laugh or cry.

Learn more about how the SEC is Not You Friend in our July newsletter article:

Not All Corporate Buyback Plans Are Created Equal

Are CEO’s Secretly Wolves in Sheep’s Clothing When Announcing a Corporate Buyback?

Read it (HERE).

Share this with a friend…even if they never heard about Bill Clinton repealing the Glass-Steagall Act.  They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~