Search the News Archive

Middle-Class People Marching on Wall Street Are Same People Funding Wall Street's Oversized Paychecks

"If change is what they want, they need to educate themselves on how they're actually feeding the Wall Street beast and find better ways to get the message across.... [P]ublic pension funds are some of the biggest investors in private equity firms, a gateway to Wall Street."

The Short Scoop on Wall Street's Claim That the DOL Fiduciary Rule Is Too Long

"The broker-dealers and insurance companies, i.e. Wall Street lobbies, have recently berated the [DOL's] fiduciary rules for their length and complexity. Yet, a close examination reveals both the rules' elegance and how the DOL's strong effort to accommodate Wall Street compensation practices was the reason for the rules' reputed length."

As Economic Conditions Worsen on Wall Street and Main Street, Many Worry About Running Out of Money

Excerpt: Many people who have left the work force have probably realized their fixed income investments aren't yielding as much income as they expected, and if they need to close that gap by selling other investments at lower prices they will damage their long-term wealth and worsen the problem.

The `F' Word -- Fiduciary -- Is Unwanted on Wall Street:

Excerpt: In a proposal floating around the financial community, the Certified Financial Planning Board of Standards Inc. is asking for public comment on a policy change that [states 'It is my obligation to be your fiduciary, but it's fine by you to relieve me of that duty.']

'COBRA's Mother' Takes on Wall Street in Fight Over 401(k)s

"Phyllis Borzi spent decades helping invent ways to protect people from unpleasant surprises in their health and retirement plans. Never did she run into the kind of resistance finance firms have mustered against her latest idea. And rarely has the industry met a bureaucrat so difficult to shut down."

Public Employee Unions Are Indirectly Some of Wall Street's Biggest Customers

"On June 30, 2011, the Maryland State Retirement and Pension System ('the System') reported net assets of $37.6 billion.... During the fiscal year ending June 30, 2011, the System spent $221 million on Wall Street money management fees, though fund management appears to have yielded subpar results. There is substantial evidence that Wall Street managers are unable to beat passive equity index funds that cost much less in fees.... The ratio of the System's Wall Street fees equaled 0.693 percent in FY 2011, above the 0.409 percent of similar state systems nationwide."

Why Public Pension Funds Are Embracing Wall Street

"[F]rom 2006 to 2012 state pension funds more than doubled their allocations to alternative investments, which include private equity, real estate, hedge funds and commodities. Totaling almost $600 billion, these nontraditional investments now constitute 24 percent of public pension fund assets. In contrast, the funds dropped their investments in stocks to 49 percent from 61 percent over the six-year period."

Wall Street Optimistic Yet Pragmatic on Social Security Privatization

Excerpt: Not surprisingly, the president can count on the pinstriped set. Wall Street generally thinks it's a good idea, in good measure because it means more money going into the stock market. 'Almost everyone on Wall Street feels you have to do something,' says David Wyss, chief economist at Standard & Poor's. 'They believe in this idea of private accounts, and it puts a lot more money into stocks.'

On Money Market Funds, False Promises and Faulty Premises from The Wall Street Journal

"There's little evidence to support the Journal's claims that its favored proposal for money market funds -- forcing them to float their per-share price -- would enhance financial stability. As the financial crisis demonstrated, floating-value funds are not immune to runs. Instead, this 'solution' would deprive investors and the economy of an efficient, diversified, well-regulated, and transparent tool for cash management, and a crucial channel for financing businesses, state and local governments, and nonprofit institutions."

Wall Street's Big, Dirty Secret about Retirement Planning and Your Money

Excerpt: Over the past few weeks, I have let you in on Wall Street's dirty, big secret: Some 'financial consultants' will do anything to get your money. They'll use manipulation. They'll prey upon senior citizens' 'need to be wanted,' 'fear,' 'desires for security,' 'guilt,' and 'greed' (as advised by one marketing guru). They'll dig through your tax returns. They'll put their names and faces on books someone else wrote for them. When they talk about 'retirement planning,' they're talking[.]