Sort of a cheap shot to those of us who work or have worked in the Stocks/Bonds/Commodities/Currency Trading Business..when you say "a lot more" you should be able to back that up. I don't believe for a second that "There are a lot more "thieves" in coats and ties on Wall Street than we will ever see in the gambling world"...ridiculous statement. Dont judge an entire industry by a few infamous stories that make headlines. The Brokers/Traders I know are honest and play by the rules.
Are all MLB players cheaters because of A-Rod, Bonds, Clemens, McGuire, Sosa and maybe even 10 others??
Dude,
You may really want to re think this statement.
Example: Why does the industry issue so MANY temporary restraining orders??? That is why your friends change companies on Friday after 3:30 when the clerks office closes. That way, they can have all weekend to contact and mail clients about their move. Before the 'TRO' kicks in.
Example: The fee structure is set up in away to CHURN the customers and give an incentive to brokers to generate more FEE's for the firm and ignore whats best for clients by moving clients portfolio's around unnecessarily.
Example: Mutual Funds are known for NOT shopping for the best price for executing trades and utilizing the best clearing houses. The HIGH turn over rate and CHURNING is why good advisers push index funds and low fee structures.
Example: High end clients use TAXSHELTERS to hide their money in the Cayman Island and in Deferred Compensation Packages such as "Coli, Boli" acronyms for corporate owned life insurance and bank owned life insurance. Also known as "Janitors Insurance".
Examples: The industry LOBBIES congress to under fund the SEC and other government regulators in such a way that lawsuits can never be brought due to a lack of resources.
Examples: Market making A.K.A. the Volcker rule and selling based on inside information. So much so that real estate next to financial data centers skyrocketed to gain millisecond advantages with computerized trading desk at the expense of EVERYONE else in the market.
Examples: Wall Street caused the housing bubble and ignored Fannie Mae and Freddie Mac safety guidelines and created their own Mortgage Back Securities that collapsed. Collapsed so bad the federal government forced Freddie and Fannie to buy up bad loans that did not meet their criteria to save the global economies.
Example: Bank of America was forced by the treasury secretary to break the law and not disclose the toxic assets in the Merrell Lynch acquisition that cost investors to watch their stock go from 80 a share to under 10!
Example: Enron used off the books accounting to hide losses and once disclosed caused a run on the stock. Not to mention the energy manipulation in California with the power outages.
Example: Ponzi scheme's from Bernie Madoff and LIBOR rate manipulation by Barclay's who CORNERED the LIBOR market.
Example: Rating agencies were giving stocks and financial instruments ratings based on lucrative business contracts.
Example: Banks borrow from federal reserve at less than 1 percent and loan it out at as high as 20 percent. Loan sharking.
Example: Federal Reserve expands Balance Sheet = print more money out of thin air!
I can go on and on about this topic! I worked for the COO of a broker/dealer who held his JD in Tax Law.
KD