Who Said Mary's FINRA Is Fast Asleep?

by: Greg Newton
Breaking, just in time to take the heat off FINRA chief executive office Mary Schapiro when she shows up in front of the Senate banking committee Thursday, for confirmation as chairman of the US Securities and Exchange Commission.

FINRA settled a matter that involved a registered representative who misappropriated $50 from a customer. The customer had earned a $50 credit by referring two new customers to the representative’s employer bank. The representative obtained the $50 from the bank but never deposited the funds into the customer’s account. Instead, the representative kept the money for himself.

FINRA concluded that this conduct violated NASD Rule 2110 (ethical standards) and, as a result, barred the representative in all capacities.

Which should make all those embarrassing questions about, among other things
  1. FINRA’s alleged supervision of Bernard L. Madoff Investment Securities LLC;
  2. Her finagling of the NASD-NYSE Regulation merger (during which she caught a 50 per cent pay raise, to more than $3 million);
  3. Some mysteriously good things that happened to people (Gary Lynch, lookin atcha!) with whom she had worked during her term as a SEC commissioner;
  4. Her longstanding refusal to change the inherently biased mandatory arbitration system; and
  5. And just how somebody who has been a senior member of the regulatory complex for 20 years could so quickly throw off a severe case of Stockholm Syndrome.
quietly go away.
Tug o’ the forelock: Paul Springer
by Randall Smith, Tom McGinty And Kara Scannell
The Wall Street Journal Jan. 15 2009
by Joanna Chung, Deborah Brewster and Greg Farrell
The Financial Times Jan. 14 2009
by Stephen Labaton
The New York Times Jan. 12 2008
by Gary Weiss
Gary-Weiss.com Jul. 25 2008
Earlier on NakedShorts:
...it was probably a stupid question
Dec. 18 2008