CNN Poll Confirms Public's Distrust of Wall Street
The demise of effective regulation by the SEC together with the current administration’s philosophy of deregulation and the reluctance of courts and arbitration panels to enforce the law is undermining the public’s confidence in the integrity of the U.S.. capital markets.
CNNMoney.com’s recent headline, “Americans think Madoff’s behavior is common – poll,” underscores this conclusion. With the abysmal effort of the SEC to investigate Bernard Madoff as he operated a $50 billion Ponzi scheme—even after receiving credible, documented information of serious concerns over the past ten years—as well as the implosion of exotic securities such as CDOs and swaps, it is apparent that most investors agree with this sentiment. The disappearance of transparency from our capital markets together with the lack of checks and balances that should be in place are responsible for the deteriorated state of trust in our capital markets.
Most Americans today are distrustful of Wall Street and the persons who make a living from it. Is it any wonder? The SEC has proven to be impotent when it comes to dealing with financial pirates, while many investors have lost billions trusting people who provided fraudulent returns, recommended securities unsuitable for their needs, lied about the holdings of exotic funds, and invested other people’s money not on the basis of what’s best for the client, but based on what lines their own pockets. Many investors fear this is just the tip of the iceberg.
Conflicts of interest run rampant in the securities industry and the lack of transparency that has permeated the industry in recent years permits many abuses to continue unabated. Until effective regulation and enforcement address these issues, problems will persist.
Similarly, public distrust will continue, and the capital markets will suffer until juries and arbitration panels send a strong signal to Wall Street that financial thievery is not acceptable. An “anything goes” enviroment simply cannot be tolerated in our financial markets..
Page Perry, LLC is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions, and have aided clients who have been the victims of financial adviser abuse and scams. Page Perry’s attorneys are actively involved in counseling institutional and individual investors regarding their investment problems. For further information, please contact us.
