New rankings show that Delaware is a better place to hide money than Switzerland. While this may come as a surprise to most Americans, financial sector analyst Heather Lowe says that it is not a surprise to the world’s criminals. Question: would that be in, uh, Dollars?? Spin, spin, spin… Watch the video

The greatest transfer of wealth in history is old news – but now that baby Boomer recipients are beginning to retire, on the heels of the meltdown, how will this affect the industry?

Changing client investment parameters are leaving some firms scrambling to adapt. The aftershocks of the Financial crisis are reverberating in portfolio allocation, and sweeping changes may result for the industry, from a service provider perspective (and then of course there will be regulatory reform, but that’s another horse entirely) . With more than a trillion dollars lost by those about to retire, many would be retirees are reportedly allocating an increasing portion of assets out of growth oriented products like equities, an into income producing products and managed accounts, according to a recent report released by consulting firm Deloitte LLP. (more…)

How the Government is taxing small businesses

Recently sticker shock had eyes popping out of their head all across America as Firm owners received their SIPC bill. For nearly 14 years the SIPC insurance cost of a brokerage firm was $150.00 flat fee paid annually. That changed dramatically for firms in the past few weeks as bills totaling 5, 10, even $50,000 began arriving at firms doorsteps to help pay for the huge cost associated with bailing out the Madoff’s and Lehman’s of the world. Instead of a flat fee, firms are now being taxed (or punished depending on your view!) a whopping one quarter of 1 percent of the firms total revenue (not profits, as one might expect, but revenues)… (more…)

You Probably Haven’t Even Heard Of The Biggest Fraud Ever – And It’s Happening Right NOW
By Larry Doyle, from “www.senseoncents.com”

Bernie Madoff’s Ponzi scheme has to be the greatest fraud of all time, right? Allen Stanford is likely a distant second, correct?

Well, actually, no. Madoff has certainly reserved a special place in financial ‘hell’ for his fraud, but make no mistake, the single greatest fraud ever perpetrated on investors is the collective Wall Street enterprise that marketed and distributed Auction-Rate Securities.  The ARS market at its peak was a $330 BILLION market. Of that initial size, those on Wall Street tracking developments within the ARS market project that $165 BILLION held by thousands of retail and institutional investors REMAINS FROZEN. (more…)

By Larry Doyle. This is a reprint from Larry’s June 29 blog on www.senseoncents.com . It is a continuation of a series of articles on FINRA’s now reported involvement in the Auction Rate Securities market - and something of a shocking expose.

At first blush, I viewed the text of the Financial Industry Regulatory Authority’s (FINRA’s) 2008 Annual Report as nothing more than standard corporate fare. With the benefit of a few days to ponder FINRA’s delivery, I am actually amazed, although never surprised, by the gall of this regulatory organization. In fact, I can only describe FINRA as displaying a special type of hubris in addressing the fraud encompassing Auction-Rate Securities. (more…)

States are desperate for revenues. Now some are mulling the possibility of going after sales taxes for business conducted for clients within those states, adding yet another layer of fiscal burden for Broker Dealers and individual advisors registered in those states. David Sobel covers this developing story… (more…)

By Larry Doyle, www.senseoncents.com

The Wall Street Journal reports this morning Lehman Role Probed in Selling Securities:

The Justice Department has questioned several former executives at Lehman Brothers Holdings Inc. as part of its criminal investigation into whether they sold supposedly safe, liquid securities to clients while knowing that the market for the securities was drying up… (more…)