Monday, December 27, 2010

FTC Red Flags Rule on Identity Theft Goes into Effect on Dec 31

This Artcle is by Henry Enright.

The Federal Trade Commission (FTC) Red Flags Rule implements sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 (FACT Act). The new Rule requires creditors and financial institutions to implement written identity theft detection and monitoring program(s). Creating an identity theft program helps businesses detect and respond to warning signs of identity theft. The Rule relates to two sections in the FACT Act-Section 315 deals with the address match requirement; Section 114 deals with the "Red Flag" alert requirement. A Red Flag is a "pattern, practice or specific activity that indicates the possible existence of identity theft."

Identity theft has been the number one fraud complaint filed with the FTC for the better part of a decade. The Identity Theft Resource Center® (ITRC) states "Identity Theft is a crime in which an impostor obtains key pieces of personal identifying information (PII) such as Social Security numbers and driver's license numbers and uses them for their own personal gain."

After numerous delays and requests for clarifications on who is actually covered by this regulation, the rules are scheduled to go into effect this Friday, December 31, 2010.

Identity theft is an insidious crime, which can devastate you financially, cause your credit to quickly erode, and can take years to restore your identity--an absolute nightmare.

Does this Rule apply to my company?

The Rule requires creditors and financial institutions to develop and implement a written identity theft prevention program designed to detect, prevent and mitigate fraud attempted or committed through identity theft. "Creditors" are defined in this new law as entities who:

1) Obtain or use consumer reports in connection with a credit transaction;
2) Furnish information to consumer reporting agencies in connection with a credit transaction; or
3) Advance funds to a person, based on an obligation of the person to repay the funds or repayable from specific property pledged by or on behalf of the person.

Only creditors and financial institutions that have "covered accounts" need a Program. Once you've determined you're a creditor or financial institution under the Red Flags Rule, the next step is to figure out if you have any "covered accounts." The FTC's website defines "covered accounts" as either:

1) Consumer accounts designed to permit multiple payments or transactions, or
2) Any other account that presents a reasonably foreseeable risk from identity theft. It further notes that "...the Rule applies to you if you provide products or services and bill customers later."

This new regulation casts a wide net -- many, many companies will be liable to comply. Elements of creating your company's identity theft program include these steps:

· Perform a Risk Assessment
· Identify all Covered Accounts
· Identify Relevant Identity Theft Red Flags for Covered Accounts
· Implement Appropriate Detection and Response Procedures
· Develop a Written Identity Theft Prevention Program
· Obtain Board of Directors Approval
· Train Responsible Staff
· Update the Program Periodically
· Review Compliance at least annually

The new Rule contains an Address Match Requirement, which applies to users of credit reports who get a notice of address discrepancy from a consumer reporting agency. A notice of address discrepancy is a notice that the address included in the user's request for a consumer report and the address or addresses in the consumer reporting agency's files are substantially different.

When do I need to comply? What are the fines/penalties for non-compliance?

After numerous delays and requests for clarifications on who is actually covered by this regulation, the rules are scheduled to go into effect this Friday, December 31, 2010

The fines are significant and your company can suffer serious financial exposure for non-compliance. The FTC's website states it "....can seek both monetary civil penalties and injunctive relief for violations of the Red Flags Rule. Where the complaint seeks civil penalties, the U.S. Department of Justice typically files the lawsuit in federal court, on behalf of the FTC. Currently, the law sets $3,500 as the maximum civil penalty per violation. Each instance in which the company has violated the Rule is a separate violation."

Should a Company demonstrate a pattern of non-compliance, your State's Office of the Attorney General may decide it warrants intervention, and can a file civil lawsuit under consumer protection statutes.

Henry Enright is an expert in Fraud Management and Risk Assessment, with recent accomplishments in Training, Regulatory Compliance (including the Red Flags Rule), Records Management and Investigations. He was recently interviewed by a local TV station on the topic of “Identity Theft & Internet Safety.” Combining his strong legal research and project management skills, he delivers preemptive fraud and risk management services, along with Regulatory and Business Ethics Compliance expertise. He is currently conducting fraud prevention/detection awareness seminars to both private sector and government employees (including law enforcement). A wireless industry veteran, he has performed roles in Operations, Enterprise Risk Management, Legal, and recently consulted for a startup location-based services (satellite A-GPS technology) company as a Business Architect. For more information, contact or 201.960.0052.

Friday, December 17, 2010

It's a Wonderful Compliance Officer opportunity

Have you seen 'It's a Wonderful Life' in 2010 ? You can start off 2011, with this wonderful career Compliance opportunity. Please contact Rosenthal Recruiting about the job with an exciting young FINRA member: it has a unique business model. You will not find this on the Ladders or any other Compliance Search website unaffiliated with Rosenthal Recruiting. Candidate must have: Experience supervising or performing Compliance Advisory role for Fixed Income trading operations & Series 53. NY location. Up to $150K base salary. Higher possible. View more and Apply at or go to and click on Senior Compliance Manager, Fixed Income.

Thursday, November 11, 2010

NEEDED: Chief Compliance Officer (CCO), Director of Examinations/Inquiries

Now needed: Chief Compliance Officer (CCO)
Client seeking a CCO who has experience with 2 primary Business lines:
- Standard retail accounts, including a leading online self directed trading offering with an emphasis on equities, funds, options and futures and forex.
- Custody and Clearance for independent registered investment advisors (RIAs)
Must have S7, 24
; 3, 4 desirable.
Experience managing a geographically dispersed staff of 10 or more also desirable.

Location and full job description on request. This opportunity is not currently on the Internet. Please call (973) 826-0537 or send an e-mail to:
You may also submit your resume and receive a quick response.

We also are now seeking a Manager of Branch Examinations - : UPDATE: was posted on 11/13 resumes can be reviewed and submitted now. Philadelphia area. Manage program/personnel overseeing inspections & surveillance of FINRA member Broker-Dealer.

Director of Examinations and Inquiries
- Investment Bank (NY)
Individual hired will be responsible for coordinating responses to Regulators, in connection with inquiries, annual & cause examinations. Manages fifteen (15) employees, only two directs. Responsibilities include but are not limited to:
• Handle inquiries and regulatory examinations for Broker-Dealers
• Responsible for significant inquiries and examinations
• Review, investigate and respond to regulatory inquiries and examinations from Regulators
• Negotiate settlement agreements w/Regulators to resolve rule violations
• Responsible for hiring, compensation, group policies and training

Please e-mail resume and brief cover letter to:

See More on the above and more at

Saturday, October 9, 2010

MD/Head of Regulatory Reporting, Op/Market Risk, AML & Surveillance: Now Needed

See Herbie's Job Search Tips.

Morgan Stanley now has a hiring freeze for Investment Bank for the remainder of 2010 - reported by Bloomberg among others. View 9/27 article. Institutional Investor noted MS joined 'investment banks that have taken steps to modify staffing amid revenue declines from dampened trading volumes.'

Rosenthal Recruiting now seeks a Senior Consultant for Op Risk. This is based in New York along with two additional Senior level Consultant roles 1> MARKET RISK and 2> Credit Risk. The openings are with a Global Consulting and Internal Audit leader. The firm includes leaders in finance, accounting, risk, compliance, technology, litigation, investigations and restructuring. It positions itself to compete ‘more nimbly and be more ‘adept’ than the Big 4.

Also NOW NEEDED HEAD of REGULATORY REPORTING - this is a Managing Director/Senior Vice President role in Stamford, CT.
The MD role is Senior, base salary up to $250+ and oversees an opening for a AVP and VP of Financial Regulation - must know SEC Rules 15c3-3, 15c3-1.

A summary can now be viewed in Accounting Jobs and Connecticut Jobs. Another recent job?
AML and Account Surveillance - International Bank Broker-Dealer - New York City

Please view and apply for all posted opportunities by Rosenthal Recruiting
. Please call (973) 826-0537 or send an email to: to personally discuss any opportunities. You may also submit your resume and receive a prompt response. Click to read Herbie's Job how you SHOULD FREQUENTLY review and fine-tune every element of your employment search, from résumés to thank-you notes. Review a checklist, take a good look, perhaps next to a hot beverage as Herbie is seen this picture.

Sunday, October 3, 2010

Florida Salon Novel Ways to Weather Business Conditions


East Side Creative Hair Salon
in Boynton Beach, FL has come up with a number of creative ways of cutting back on its payroll and helping its bottom line. Not only creative but these ways are a win-win for all – please read on.

East Side owner Rosemarie Clark recently implemented a volunteer program that provides gives much sought after work experience to Students enrolled in a local Cosmetology School.

The Students, who all are enrolled in a mentor program that East Side takes part in, not only learn in a Professional salon environment, they gain very important hands on experience. The East Side Creative Hair Salon Mentoring Program offers experience in several job categories including as a Shampooer, Bookkeeper, and Receptionist.

This program has proven very helpful as when these Cosmetology students graduate and then seek their first jobs -they have experience that most employers require.

Learning the salon crafts under Rosemarie and Kenneth Clark who have operated EAST SIDE CREATIVE HAIR SALON since 2002 has proven very valuable for job seekers in today's challenging job market.

Beyond the job experience, the Students who work for three (3) or more hours each week are eligible for free hair services from East Side's experienced Cosmetologists.

On the positive side for the Salon owners, saving on payroll costs helps the bottom line during the nation's economic downturn.

Do you have any other sample of small businesses who have made key decisions in the current economic environment?
Family owned East Side Creative Hair provides salon services to patrons looking for salon services at affordable prices provided by experienced cosmetologists, educated in maintaining the health of the hair and scalp. All done in a clean and friendly atmosphere.


Website is


The Salon has a Facebook page and the photo shown is from its album titled Salon Models Summer 2010

By East Side Creative Hair Salon · View Photos


Salon Hours
Tuesday - Friday {9:00 to 6:00}
Saturday {9:00 to 3:00
Sunday & Monday {Closed}
Appointments encouraged.

Located at
614 No. Federal Hwy, Boynton Beach, FL 33462

On the east side of Federal Hwy
No. of Boynton Beach BLVD.

Saturday, September 25, 2010

AML & Retail Account Surveillance Analyst, Financial Regulation (AVP) Openings

AML and Retail Account Surveillance at the Analyst level now needed.
Compensation: Base 80-95K + Bonus, Midtown NY office, Broker-Dealer part of established Bank.

As re-tweeted this morning:
New #Job #AML #Compliance, SERIES 7, 24 Retail Surveillance exp. reqd #NYC Apply w/ e-mail to:

Original Tweet on Fri and prior tweets
New #Job #AML #Compliance Officer, SERIES 7, 24 retail brokerage surveillance exp reqd Location #NYC Apply via e-mail
•Ensure that activities are in compliance with applicable laws, rules and restrictions of the SEC, FINRA, Federal Reserve and state securities regulations.
•Ensure that the Compliance Manual and Supervisory Manual amendments are timely circulated to appropriate personnel as laws, regulations and procedures are changed.
•Coordinate training and Continuing Education (CE) of personnel.
•Conduct daily surveillance review of brokerage activities.

Minimum qualifications:

•7 years experience, Bachelor's degree, Series 7 and 65 licenses; 24, preferred
•Excellent organizational, interpersonal, written and verbal communication skills
•Strong PC skills, MS Applications

Another new opportunity is a position for a Compliance Examiner.
A candidate should have internal or external audit experience, preferably in Capital Markets. Corporate Title - Vice President (VP) Base Salary target: $125,000 to $140,000

A Financial Regulation (AVP) role focused on SEC Rules 15c3-3, 15c3-1 Salary 125K - will be responsible for:
• Preparing the SEC Rule 15c3-1 Net Capital computation for a US Broker Dealer.
• Preparation of Weekly SEC Rule 15c3-3 Customer Reserve calculation.
• Monthly preparation of FOCUS report

To read more and apply for this opportunity please click here or send a WORD resume by email to:

Sunday, September 12, 2010

Registration Compliance Officer - Bank Holding Compliance Officer, among current Openings

Bank Holding Compliance Officer:
This opportunity is a permanent Vice President role with a well-regarded US-based Firm known more for Investment Banking. A candidate must show Bank Holding Company, Federal Reserve and/or other Federal Bank agency work experience.

With the support of Legal and Compliance, the responsibilities include monitoring to ensure full compliance with Federal Reserve laws and regulations, internal policies and procedures and report discrepancies to Senior Compliance Management. See More & Apply at Job Board.

Registration Compliance Officer - CRD, CE etc.
Prestigious Investment Bank
Posted: September 3, 2010
Address: Stamford, CT 06907
Full-time, Permanent
Responsible for coordinating regulatory, licensing and other legal and compliance tasks to ensure employees are registered and licensed as required. Assist and support Senior Regulatory, Legal and Compliance colleagues in all matters related to SEC and FINRA compliance.

Manage the licensing of employees and related ongoing compliance matters in connection with activities for licensed associates.

Manage, obtain and maintain registrations, including continuing education for licensed associates and reviewing confirmation reports regarding continuing education exams. CE Notices; Tracking CE compliance; RV confirmation reports re: CE exams. See More. Apply, Inquire.

Saturday, September 4, 2010

Chief Privacy Officer (CPO) Needed | PCAOB Seeks PUBLIC Hearings | Muni. Advisers Must Register w/SEC by 10/1

The SEC announced on 9/2 that it adopted a temporary rule requiring municipal advisors to register with the SEC by October 1, a deadline established by the Dodd-Frank Act. Municipal advisors can access and complete the new registration form (Form MA-T) on the SEC website.

Separately, as WSJ reported on 9/3, the U.S. board overseeing Company auditors has sent a draft bill to Congress to make its enforcement proceedings Public.

Privacy sector JOB Opportunity

Chief Privacy Officer (CPO)
This job is located close to Philadelphia in NJ. A excellent opportunity for for the right person located near Cherry Hill, NJ Center City Philly or the Main Line. Please share w/anyone who has contacts within a Large Bank or with a Privacy specialty.

Bookmark and Share

CIPP qualification preferred, not required.
This job listing is posted on the Rosenthal Recruiting Job Board.
To apply, review or forward a Job please 1) Click to view the complete Job Description 2) E-mail resume and cover letter to or call (973) 826-0537. For more information please view the Job Board.

The Public Company Accounting Oversight Board (PCAOB) proposal would repeal a requirement that its disciplinary actions remain secret, according to a copy of the document reviewed by Dow Jones.

In Privacy News this past week,
as the public now is denied access to information about accountants that have been sanctioned or charged by the PCAOB, acting Chairman Daniel Goelzer wrote a letter on Aug. 24 to members of the Senate Banking Committee and House Financial Services Committee.
Going Concern's Caleb Newquist added that 'despite the setback that was the creation of the PCAOB, the Big 4 have to be pret-tay, pret-tay, pret-tay pleased with the privacy they get when it comes to the Board’s disciplinary actions. Perpetually-acting chair Dan Goelzer wrote a letter to the Senate Banking and House Financial Services Committees saying that by keeping the proceedings mysterio and out of the public eye. The current arrangement “gives firms and auditors an incentive to drag out litigation, sometimes for years,” and that simply won’t do.

Despite the general public’s disinterest in all things accounting (until the shit hits the fan, of course), the Board is still trying to find its place as the relatively new kid on the bureaucratic block."

Tuesday, August 31, 2010

HELP WANTED: "Fund Czar" "Top Fund Cop" aka S.E.C. Director of Division of Investment Management

Did you notice that last week the S.E.C. announced that Andrew "Buddy" Donohue - the agency's Director of the Division of Investment Management - will step down in November?

As Chuck Jaffe, of MarketWatch noted in a recent column, the typical fund investor hasn't got a clue who Donohue is or what he has done in his SEC job over the last four years. Jaffe added that since industry insiders argue over whether the director of the Division of Investment Management should be called the agency's "fund czar" or its "top fund cop," there's no denying that whoever has this gig has the potential to influence a lot of key issues facing the fund industry today.

, who was global general counsel at Merrill Lynch Investment Managers before joining the SEC, was credited by the agency with improving the oversight of money-market funds, as well as for his efforts to overhaul 12(b)-1 fees in the fund industry.

Since Donohue is leaving at a key time in the evolution of mutual funds, whoever replaces him faces big issues with the potential to change the way individual investors interact with fund companies and feel about funds and financial advisers.

A primary issue is Fiduciary responsibility for advisers. On the surface, this does not seem to be a fund issue, but it clearly is. The dirty little secret of financial advice is that only some types of advisers have a fiduciary responsibility to their customers, meaning they are required by law to put their client's best interests first. Other types of adviser, most notably people acting as brokers, must adhere to a "suitability standard," meaning an investment merely must be suitable, rather than "in your best interest."

Congress was wrestling with this issue, but booted it out of the financial-reform package and kicked it over to the SEC to study by January, with proposed rules to follow soon thereafter. The new big cheese at the Division of Investment Management will have a lot of say here, and if he chooses not to protect investors on this one, it will send a big message that the new top fund cop is soft on protecting consumers and in bed with the brokerages and insurance companies.

Here are the rest of the issues that a new fund czar must help to steer and shape as listed by Jaffe in his Aug 22 Marketwatch column.
-Completed reform of 12(b)-1 fees
-Revenue sharing between funds and advisers
-Rapid trading in exchange-traded funds
-Regulate 'alternatives' that the fund world uses to dodge rules

Thursday, August 26, 2010

Wanted: Chief Data Officer for US Federal Govt. Data Skills Not Necessary

President Obama has a year to decide on which person will occupy the post of Director of the Office of Financial Research (OFR).

Before that Congress must ratify.
Should the individual have previous Washington experience? A former White House executive, Congressman or say Treasury official. What about Wall Street experience and if so what kind?

As noted by Chris Kentouris in the Securities Industry Blog, this job amounts to the U.S government having the equivalent of a Chief Data Officer.

The OFR will be a new agency responsible for collecting data from financial corporations - what the IRS is for taxes. This newly created department will be responsible for collecting whatever data is needed from financial institutions so that the industry as a whole can be analyzed and evaluated for the spectre of systemic risk. In effect, illness in one firm or group of firms will be spotted before it spreads to the market as a whole.

According to the Financial Reform bill, the OFR will eventually issue and maintain two different and very important public databases. One would be a database of the financial instrument types and another a database of financial entities and organizations. The OFR would be linked to a Financial Research and Analysis Center whose job will be to develop intelligence – or actionable data – out of the raw data—so it can identify emerging systemic risks. Congress would get an annual report.

Given its significant role, who should head up the OFR?

The overriding consensus: a minimum 10 years of experience as the former chief executive or chief financial officer of a large Multinational Bank and/or a minimum 10 years experience as the chief risk officer of a large multinational bank. Additional data management expertise ideal but not required.

Michael Atkin, managing director of the NY-based Enterprise Data Management Council agrees that Wall Street experience is critical.

But he doesn’t discount the need for political savvy when it comes to leading the OFR. “It is after all a political appointment so some knowledge of the inner workings of Washington DC would be a plus,” says Atkin, whose group advocates that financial firms understand the importance of maintaining consistent and accurate enterprisewide data.

Atkin’s top three picks for the OFR directorship: the former chief operating officer of a large financial firm who is either retiring, previously left for a job in academia or for a job in Washington, says Atkin.

See more on the this from the Securities Industry Blog

Monday, August 23, 2010

Options Compliance Officer & Chief Privacy Officer, needed | Fortune Poaches for new Wall Street coverage

Senior Options Compliance Officer job listing has been posted on Rosenthal Recruiting Job Board:

Company: Established, respected Investment Bank Broker-Dealer
Where: New York, NY

URL to view more and apply:

Last week, a Chief Privacy Officer opening was posted.
This is a great opportunity with a Bank Holding Company that has a growing global footprint and leading regional banks in it family of subsidiaries.

If you missed, the Big news out of the financial journalism world last week: Dan Primack (pictured), creator and writer of Reuters' successful private equity newsletter, peHUB Wire, has been scooped up by Fortune as a senior editor on its website.
This summary from, noted that Talking Biz News was the first with the news, reporting that Primack's "hiring coincides with the launch of a new section on called 'Fortune Finance,' which will include news about Wall Street, private equity, mergers and acquisitions and economics."

In a note to staff, editor Daniel Roth adds that "Dan will write a morning newsletter covering venture capital, Wall Street, M&A and other deal-related topics."

Here's a link for the Fortune full memo via veteran reporter, editor, and pioneering weblogger Romenesko, noting: "Dan’s reporting has become a mandatory read in the private equity market —and he’s not bad on TV, either. From his Boston outpost, Dan will write a morning newsletter covering venture capital, Wall Street, M&A and other deal-related topics. If there are investments being made or an exit in process, Dan knows about it and is ready to explain what it means. In addition to the morning newsletter, Dan will also be blogging."

Wednesday, August 11, 2010

MSRB Counsel (DC) and Blue Sky Attorney (NY) and Prime Brokerage Attorney openings

MSRB is now seeking an Associate/Assistant General Counsel. Part of a legal team collaborating on Rule making/Policy functions of the MSRB, as well as providing advice on internal legal matters. This is on the SIFMA Job Board,

Not yet posted on the Rosenthal Recruiting Job Board - is a job opening with an AmLaw 200 Firm. Seeking 7+ years of experience to work as a Blue Sky Attorney: Responsibility for Blue Sky matters, securities registrations including IPO registration, PIPES, Hedge Funds, state filings, exemption applications, notice filings for covered securities. FINRA tenure and experience required.

Position Overview: Advise on state regulations of private placements, PIPEs, IPOs.-Advise on investment adviser registration and notice filings in states.-Draft legal memorandum and conduct research on Blue Sky law.-Draft documents for private placement offerings and acquisitions.

Please call 973-826-0537, send an e-mail with cover letter and resume to discuss this excellent opportunity with a prestigious Law Firm.

Among other openings we are currently working to fill a Large Investment Bank’s Prime Brokerage Attorney opening. Responsibilities, Requirements for this can be viewed at the Rosenthal Recruiting Job Board. This premier investment bank requires an experienced Securities Counsel, 10+ years, 3+ covering Prime Brokerage and Securities Lending. Will consider someone from a Law Firm.
(973) 826-0537

Saturday, July 31, 2010

Prime Brokerage Counsel, Corporate Secretary & Financial Services Advisory

Prime Brokerage and Securities Lending Counsel job opening.
This opportunity requires an experienced Securities Counsel covering Prime Brokerage and Securities Lending. Responsibilities, Requirements... more for this job listing can be viewed at the Rosenthal Recruiting Job Board.

Also new: Corporate Secretary opening. This job listing can be viewed at the Job Board. Requires 10+ years experience maintaining Delaware and Cayman Island subsidiaries. Up to $150K.

Click the "Call Me" icon above, enter your name and number, and then click "Connect." Google will first call you at YOUR number, then connect you with Rosenthal Recruiting. Google will connect you for free. W/ a cell phone, carrier may charge for minutes.

As many in the Regulatory space prepare or already engaged on Reform or set up task forces, Rosenthal Recruiting is handling resources for client long term engagements as well as permanent opportunities.

We are now working with a major Professional Services Consultancy for its Financial Services Advisory Practice. Responsibilities, requirements/experience include assisting Asset Management, Investment Bank and Broker Dealer clients with Regulatory Compliance, Risk Management, Internal Controls and Internal Audit. View job description - apply for the Financial Services Advisory Practice, Senior Consultant.

Friday, July 23, 2010

Compliance Examiner, needed in Stamford, CT Fixed Income, Bank and Research Compliance in NY

A NEW opening for a Broker-Dealer Compliance Examiner position is now posted on the Rosenthal Recruiting Job Board. Please go to the post for full Job Description. Requirements include Examination, audit or internal testing experience. Read more/apply. This position will be as an Examiner in the Oversight and Monitoring Group for the Fixed-Income Capital Markets firm. Office Location: Stamford, CT
Another new job opening this week: Fixed Income Compliance Officer. The job is located in Midtown Manhattan, will pay a $175K base salary for the right candidate. Product and experience requirements include Treasury Securities, Interest Rate Derivatives and other Credit products. Salary 175K + a Bonus Read more/apply.

Director of Research Compliance
- job listing was posted yesterday and the Company for this opportunity is a prestigious Investment Bank. Location: New York | Salary $200k Read more/Apply.
---- has posted job opportunities and you can Subscribe to an RSS Feed. Recently we have seen Fixed Income, Bank Regulatory roles and a spate of Compliance Officer Control Room opportunities: a number of candidate interviews were held this past week with well-known Investment Banks. You can sign up for e-mail delivery at, follow Rosenthal Recruiting at LinkedIn and/or twitter.

Wednesday, July 21, 2010

Political, Regulatory Battles Await....Obama: Bill will prevent 'breakdown in our financial system'

The White House sought to rebuff criticism that key Wall Street executives were excluded today from signing for the President's financial reform legislation.

The Hill reports that the administration publicly pushed back against a Washington Post story this morning noting that among the 400 people invited to this morning's bill signing, absent from the list were the CEOs of Morgan Stanley, Goldman, Wells Fargo and J.P. Morgan, among others.

"This is a fake controversy. The CEO’s who opposed reform never expected to be invited to the bill signing and not a single one has complained to the Administration," Jen Psaki wrote on the White House blog. "In fact Administration officials have been in touch with many of the same CEOs about a number of issues over the last few days and this issue has not even registered.
Text of Obama remarks on Dodd-Frank, courtesy of MarketWatch, July 21, 2010 @ 11:43 a.m.

Friday, July 16, 2010

Bringing New Light to Derivatives

The financial overhaul bill, which the Senate cleared Thursday and sent to the president, imposes multiple new regulations on the derivatives market generally and the swaps market in particular. It requires that standardized derivatives contracts be traded on an open exchange, with prices and volumes reported publicly. The contracts must also be cleared through a third party, an intermediary who guarantees that if one party defaults, the investor holding the other side of the trade will still be paid.

Clearinghouses will perform that function by requiring parties in a derivative trade to put up collateral, or margin, to protect against a default. The bill also requires securities firms that trade derivatives to maintain certain levels of capital.
Overseeing all this activity is the Commodity Futures Trading Commission (CFTC), in the case of derivatives involving commodities like soybeans, oil or metals, and the SEC for security-based transactions.

Blythe Masters, who oversees global commodities at JPMorgan Chase, said at a conference on Thursday that in many respects the changes “are actually going to be very beneficial for the industry and derivatives market participants.”

“It’s important not to lose sight of the fact most of the best minds in the field have believed for years that there has been the need for reform in the market,” she said. Above is a summary from a Article from The New York Times

Thursday, July 15, 2010

SEC Commissioner Luis Aguilar to host DC Minority Attorney Networking Series on Mon. July 26

When: Monday, July 26 (6:45–7:15 p.m.)
Who: Commissioner Luis Aguilar
Where: St. Regis Hotel, Washington, D.C

The D.C. Minority Attorney Networking Series is co-organized by Arnold & Porter and Fried, Frank. In addition to these firms, twenty-six more leading law firms in Washington, D.C. team up and sponsor the Minority Attorney Networking Series.

SEC Upcoming Events page
lists Arnold & Porter Partner to Contact for the July 26 event: Darren Skinner (202) 942-5636 or

If you missed, Commissioner Aguilar's Sage Words About Effective Regulation, please see Bill Singer's July 1, 2010 BrokeandBroker summary copied here:

Longtime readers of BrokeAndBroker know that I am not a fan of the time-wastin' speechifyin', masturbatory roundtabling, and high-fallutin' blue-ribbon panels that enervate our government. Sadly, we are saddled with legislators and regulators who belatedly cobble together ineffective solutions for yesterday's problems, or opt for abject inaction that paves the way for tomorrow's crises. In the end, we get neither an ounce of prevention nor a pound of cure. E Pluribus Unum has been replaced with Too Little, Too Late.

Among the worst examples of institutionalized procrastination is the United States Securities and Exchange Commission (SEC). On June 30, 2010, during an open meeting of the SEC, Commissioner Luis A. Aguilar gave a speech titled: "Preventing Investor Harm Should be SEC Priority Number One." It was with some surpise that I read Commissioner Aguilar's comments because he offered a superb description of what constitutes effective regulation. Now, if only the astute commissioner could transform his vision into action, and drag his colleagues into the 21st Century!

I commend his words to you:

Regulatory oversight functions best when we have a regulatory regime that prevents misconduct in the first instance—long before investors can be harmed. If the conduct is not affirmatively prevented, investors are harmed. It's true that once investors are harmed and lose faith in the integrity of our institutions—irreversible damage has taken place. Enforcement actions are rarely, if ever, able to make investors whole, sufficiently punish all the fraudsters, and prevent a loss of investor trust in these financial institutions and the securities industry as a whole. The best course of action is to prevent the significant harm in the first place. Prophylactic rules, consistent and effective inspections, and strong enforcement must work together to protect investors.

Read Commissioner Aguilar's Entire Speech

Friday, July 9, 2010

Understanding Financial Reform - Overview at The Waldorf

Mayer-Brown provided “Understanding the New Financial Reform Legislation.” To view the summary outline of the Dodd-Frank Act used in the seminar, please follow the link to view.

Mayer-Brown invites you to the The Waldorf Astoria Hotel in New York on Monday July 12 for a comprehensive, full-day overview of the significant impact this historic legislation will have on US and global financial markets and other important topics:
You can Register to attend here
* Bank proprietary trading and private fund activities (“The Volcker Rule”)
* Bank regulation and structure, including capital requirements
* Securities markets and investors, including securitization
* Derivatives
* The regulation of systemically significant companies
* The resolution scheme for leading financial firms
Location The Waldorf Astoria Hotel | 301 Park Ave | New York

CLE credit will be available. The program includes a lunch, closing cocktail reception and there is no charge to attend.

Register here to attend Mayer Brown all-day overview:

Tuesday, July 6, 2010

Redefining Jobs of 'Prop' Traders

Volcker rule has everybody on Wall Street scrambling -- even though it hasn't yet become law and won't effect some banks for years.

Reform bill final vote will be next week in the Senate and Banks are shuffling star proprietary traders, whose roles could be put in jeopardy by the reform, according to The Wall Street Journal. Volcker rule will prevent banks from wagering their own money.

Citigroup considering moving traders onto desks that trade with clients, while other firms have moved them to customer-focused operations.

But all this shuffling could just be Wall Street-style smoke and mirrors. At some banks, prop traders are doing what they always did, just from different trading desks. At Morgan Stanley, one trader whose desk was shut down now trades using money from a desk that serves clients. At Deutsche Bank, another trader bets with the bank's money, just on a client trading desk.

Meanwhile, clients are wary about prop traders moving to desks where they can see customers' investment strategies -- and possibly steal customers' ideas for their own profit.

However, firms may be moving a little too fast: Under the reform, many banks, including Goldman and Citigroup will have till 2022 to comply with the Volcker rule. This summary courtesy of

Sunday, June 27, 2010

Finance Reform Bill, Lobbyists Shift to Regulations

Congress agreed on the Financial overhaul legislation, now Lobbyists and consumer advocates continue their battle: influencing hundreds of new rules and regulations.

Scott Talbott, lobbyist for the Financial Services Roundtable: “Where the rubber meets the road is the regulatory process.”

President Obama hopes to sign the bill into law by the Fourth of July. In weekly address on Saturday, Obama said, “I urge Congress to take us over the finish line, and send me a reform bill I can sign into law, so we can empower our people with consumer protections, and help prevent a financial crisis like this from ever happening again.”

Obama's signature will start the clock on dozens of deadlines embedded in the legislation for regulators from a host of agencies, including the Federal Reserve, the S.E.C. and the F.D.I.C. More on Lobbying and Regulatory follow-through from Sunday NY Times page A1.

Law Firms and others offering overviews and guidance:

Info on one from Debevoise: Please click here to register
by July 6, seating limited.
If you prefer to join the seminar by webcast,
please e-mail: or call +1 212 909 1988.

SIFMA's summary of the Dodd-Frank agreements. Right here a summary for Hedge Fund - New Standards and Regulation

Fills Regulatory Gaps: Ends the “shadow” financial system by requiring hedge funds and private equity advisors to register with the SEC as investment advisers and provide information about their trades and portfolios necessary to assess systemic risk. This data will be shared with the systemic risk regulator and the SEC will report to Congress annually on how it uses this data to protect investors and market integrity.

Greater State Supervision: Raises asset threshold for federal regulation of investment advisers from $30 million to $100 million, a move expected to significantly increase the number of advisors under state supervision. States have proven to be strong regulators in this area and subjecting more entities to state supervision will allow the SEC to focus its resources on newly registered hedge funds.
Also this week: hearings before the Financial Crisis Inquiry Commission (FCIC) on Wednesday and Thursday on the role of derivatives in the financial crisis. Joseph Cassano who ran AIG Financial Products, the division behind the insurer's meltdown in September 2008, has evaded public appearances since leaving the insurer some two years ago.

Cassano, will face-off with a panel investigating the causes of the financial crisis. The son of a Brooklyn policeman, Cassano has been the subject of criminal and civil investigations in the United States and abroad, but recently had the specter of prosecution lifted when the U.S. Department of Justice and SEC ended their investigations against him and other AIG executives.

Cassano will rub shoulders with a star cast, which includes Goldman President Gary Cohn and CFO David Viniar
who will testify at hearings before the FCIC next Wednesday and Thursday on the role of derivatives in the financial crisis.

Former AIG CEO Martin Sullivan and AIG Chief Risk Officer Robert Lewis also expected to headline the panel's hearings.

The hearings comes on the heels of Congress' votes on financial reform legislation to address the financial crisis. The roles of Goldman and AIG have been scrutinized since U.S. taxpayers committed hundreds of billions of dollars to bail out the banking industry. Read article about the FCIC hearings.

Tuesday, June 22, 2010

Investment Management Compliance Openings prior to final version of financial-revamp bill

While Lawmakers have yet to tackle the most controversial, divisive issues of the financial-revamp bill, we are seeing some large Investment Management entities including Hedge Funds begin to interview for new Compliance and Legal requisitions.

Of current opportunities, one not posted on any website requires 10+ years in Investment Management Compliance. This is located in Stamford, CT. The Company is a well-known, leading Hedge Fund Group. The role will be handling regulatory examinations, annual compliance review, annual testing review, registrations. Base potential all-in $250K+.

Lawmakers drafting the final version have resolved some difficult issues, including increasing scrutiny of Federal Reserve decisions. Democrats said they want to conclude this week and send the final bill to the president by July 4. That leaves only a few days to resolve issues, such as the "Volcker rule" and a measure that would force banks to spin off derivatives operations. Read more in The Washington Post "Volcker Rule," named after former Fed chairman and presidential adviser Paul Volcker, would ban banks from proprietary trading - trading with their own money.

For a candidate closer to entry level with an Investment Bank, Surveillance Analyst job description can be viewed at the Rosenthal Recruiting job board. Other openings include Director of Audit for a Commercial Bank, Fixed Income - Mortgage Trading Compliance Officer, Chief Compliance Officer in Florida and Capital Markets Compliance.

Tuesday, June 15, 2010

Lobbyist Roadblocks on the Financial-Overhaul Bill

What are the reasons why bending the ear of lawmakers suddenly has become a bigger challenge for financial-services industry lobbyists?
Some lawmakers want to avoid the slightest appearance that Wall Street is getting another chance to throw its weight and money around on key provisions of the bill, including toughened oversight and other bank/securities cash cows.

Although Democrats are hoping to have the financial-overhaul bill signed into law by July 4: Barney Frank is still holding meetings by phone.

Some banks have been told that their views are known enough already, given the long debate over how many legislative changes are needed in response to the financial crisis. Not surprisingly, banks and securities firms still are pressing their case. Bank of America CEO Moynihan recently met with White House and J.P. Morgan Chairman Dimon has made a series of phone calls to lawmakers to argue that several provisions of the bill could damage the banking system and overall economy.

"The closer you get to the end of the process, the more intense everyone's efforts get," says William Sweet, a partner at law firm Skadden, Arps. "A lot of people are losing sleep."

In the first quarter, the latest period for which figures are available, the securities and investment industry spent $28 million on lobbying, according to the Center for Responsive Politics. Some of that spending likely is funding part of the current lobbying push. If the first quarter's pace continues through the rest of 2010, the industry's total lobbying would surpass by 18% the all-time high set in 2008. (Pictured chart courtesy of WSJ on Page C1 6/15/10)

Tuesday, June 8, 2010

Taking the Conn and Nicking the Con...Financial landscape changes before overhaul is complete

Financial landscape changes before overhaul is complete. SEC Anti-Flash Crash Rules in Place any day.

As shared on LinkedIn today, Compliance/Legal/Audit types may very well like a fresh, yet historical take on "the Con" - in the post-bubble. Madoff, Stamford era.

The book "Taking the Conn and Nicking the Con" by John Hauss is so well-written with personal and historical anecdotes - of Cold War Military missions and FBI cases, including many well-known. With interest in these matters you will find a very enjoyable read with a witty perspective.

About the Author of "Taking the Conn and Nicking the Con":
John (Jack) Hauss is a graduate of Villanova and Fordham Law School. Serving three years aboard the amphibious attack transport ships Chilton and Navarro, he filled such billets as Information Center Officer, Legal Officer, Personnel Officer, Division Officer, and Boat Officer. As an FBI agent, assignments took him overseas and to locations in Georgia, South Carolina, California, Washington State, New York, and New Jersey. Retired, he resides in New Jersey with his wife and together they enjoy spending time with their six children and 12 grandchildren.

Tuesday, June 1, 2010

Compliance Officers and "Whistleblowing" Retaliation

Can any Broker-Dealer, Investment Advisor Compliance Officers mention any experience you have had yourself or observed with retaliation for "Whistleblowing."

Are you aware of any study, survey or article regarding the extent to which compliance officers are concerned that they may be subjected to retaliation or other adverse action as a result of their activities?
This question was asked at the Society of Corporate Compliance and Ethics (SCCE) LinkedIn Group. As of June 1, there were 13 replies at the SCCE Group.

The Attorney who posted the question, surmised that the situation may be more prevalent than commonly known because - to no one's surprise - very few compliance officers want to talk about it openly.

Monday, May 31, 2010

Memorial Day Comment and Thank You

Remembering doesn’t do the remembered any good, of course. It's for ourselves, the living. I wish we could dedicate Memorial Day, not to the memory of those who have died at war, but to the idea of saving the lives of the young people who are going to die in the future if we don’t find some new way – some new religion maybe – that takes war out of our lives. That would be a Memorial Day worth celebrating.
This is from Andy Rooney. Read the entire commentary at

Watch the 2:37 Video + 15 second commercial.

A Memorial Day Thank You - posted by The Law Office of Ryan P. Smith, PLC.

The Department of Veterans Affairs reports that about one million men and women have died in the military during wartime, including about 655,000 battle deaths. This Memorial Day we honor these brave souls for making the ultimate sacrifice for our country. Better still, honor their sacrifice by performing a random act of kindness or simply thanking one of our current service members. (May 28, 2010)

Tuesday, May 25, 2010

FINRA - Annual Conference kick-offs | FINRA Fined Piper Jaffray $700,000 for Email

FINRA - Annual Conference

kick-offs tomorrow following yesterday's announcement that it Fined Piper Jaffray $700,000 for Email Retention Violations, Related Disclosure, Supervisory and Reporting Violations

Retention issue: Finra fines Piper Jaffrey over email archiving

– As summarized by the Investment News, Finra on Monday said the firm failed to keep 4.3 million e-mails from late 2002 through 2008, due to intermittent technical issues with retention and retrieval.The problem came to light after Finra asked Piper for an electronic version of a hard-copy e-mail the regulator had obtained during a separate investigation. Only then did the firm inform Finra of the retention issues, Finra said. Who are you going to call? See a related article entitled Backup and archiving suggestions for small broker-dealers

It is too late now to register FINRA's Annual Conference: In-person attendance has sold out. Space is still available for the live streaming video broadcast.Select conference sessions will be available via on-demand video in late June. CLE-eligible audio will also be available in late June. Register for what you can for FINRA's 2011 Annual Conference.
Recent Updates, Agenda, Sessions, CRCP Luncheon, Office Hours, Speakers, CLE and CPE Credit



Tuesday, May 18, 2010

Small Hedge Funds Pained By New Regulations | FINRA & Wall Street 'Hall of Shames'

Hedge funds have bounced back in a big way from the financial calamity of 2008, but that hasn’t stopped regulators from trying to hit the industry with new rules. Continue reading this at Dealbreaker.
which provides a link to CNBC which notes this could spur even more consolidation along the lines of Man Group/GLG deal yesterday.
Hedge Fund Inquiry Will Slam Small Funds []

Dealbreaker also has a piece on an Ex-Morgan Stanley Employee Running a Wall Street “Walk of Shame Tour” - video included from the Deal.

Seven (7) FINRA member firms recently were expelled or suspended for failing to pay fines or arbitration awards or for not supplying financial information. Twenty-seven (27) Individuals had their licenses revoked, were barred or were suspended for various reasons. See the list on pages 24-25 of the May 2010 FINRA Disciplinary Sanctions for via the FINRA Hall of Shame's Latest Entrants.

This is courtesy of Compliance Insights' What Went Wrong:
Who Got Theirs And Why.
Fines and Sanctions levied by the SEC, FINRA, NYSE Euronext, CFTC, CBOE, and others. Compliance Insights' most recent update is "FINRA: Thomas Weisel Dumped ARS's into Client Accounts"
Read more on the latest. "FINRA: Thomas Weisel Dumped ARS's into Client Accounts"

Tuesday, May 4, 2010

Finra Takeover of NYSE Regulation for Equities, Options Markets

NYSE Regulation, a not-for-profit subsidiary of NYSE Euronext, will oversee Finra's performance of regulatory services for its markets, according to a news release.

Finra Chairman Richard Ketchum said in a statement that the deal allows the group "to have a more holistic, cross-market approach to regulation" amid "fragmented markets, aggressive competition and complex trading strategies."

Ketchum had warned that multiple regulators jockeying to keep tabs on U.S. trading are working with an incomplete picture of the overall market, with differing sets of rules creating loopholes and the potential for some participants to avoid oversight.

"This is the right thing for the markets and the right thing for customers," NYSE Euronext CFO Michael S. Geltzeiler said. "Moving these types of activities to Finra, coupled with the business they have from Nasdaq and BATS, marks one step toward the optimal structure where we have a single market surveiller."

Geltzeiler said that eventually he would prefer all U.S. share-trading volume to go through the same regulatory surveillance required of exchanges like NYSE Euronext, and that consolidating these functions could make the overall process cheaper and more efficient for everyone.

Friday, April 30, 2010

Read Katie Couric's advice on Movie Futures

While Members of Congress Voice Opposition to Trading of Movie Box-Office Futures following the CFTC approval of initial proposals from both Media Derivatives, part of Scottsdale, Arizona-based Veriana Ventures, and Cantor Fitzgerald's Cantor Exchange unit, Katie Couric has opined.

From Katie at CBS News:

Movies are like kernels of corn, some of them pop big but a lot of them end up duds at the bottom of the bag.

But Wall Street trading firm Cantor Fitzgerald is one of two companies planning to open futures markets for movie releases, betting on potential blockbusters like Avatar, and box office busts like Gigli.

Investors would try to make money by guessing how much a film would earn during its first month at the box office.

The idea could help Hollywood studios spread around the risk in case they get stuck with a flop and for an investor with a keen eye it could really pay off.

Before you tap what's left of your 401k though, you should know futures contracts come with a lot of risk. A bet on that new romantic comedy could easily turn into your own personal horror show.

But unlike the folks who spent ten bucks on Speed 2 Cruise Control, there's at least a possibility of a return.

That's a page from my notebook.

I'm Katie Couric, CBS News.

Wednesday, April 21, 2010

Compliance and Regulators - Understanding Structured/Securitized products and Derivatives

In a Wall St Journal Op-Ed WSJ today, Gary Gensler CFTC chairman: addresses how OTC Derivatives should be routed through a central clearinghouse.
Not being cleared in a central location cause markets to be "too interconnected to fail. This part of the reform bill will greatly reduce interconnectedness and the need for future bailouts," Gensler writes. Read WSJ Op-Ed.
JOB Opportunities for Compliance Officers:
-who understand structured/securitized products and derivatives.
-have worked with and directed IT to develop Sales and Trading exception reports from development through implementation.

There is an excellent opportunity that was just added to the Rosenthal Recruiting Job Board: Job Title is Equity, Derivatives, Fixed Income - Surveillance Officer and this job listing can be viewed now.

Another current listing calls for a Senior Futures Compliance Officer - see job description. The role will be responsible for the administration of a comprehensive futures compliance program for Institutional Securities, including coverage of both sales and proprietary futures trading.
Meanwhile you can read how Investigators and Congress are taking a closer look at Collateralized Debt Obligations (CDOs), embedded in the SEC case against Goldman. A SIFMA analysis shows that synthetic CDOs made up a little more than 10% of the market in 2007, with cash-bond CDOs making up the rest. Market insiders are delving deeper into the complex transaction to calculate potential legal costs. Media reports today on Washington and Bank analysts looking to determine whether other banks, beyond Goldman, might face legal action, exposing them to potential liabilities. NYT article "Questions for Banks That Put Together Deals."

Sunday, April 18, 2010

CDO Scandal - Subprime Refresher

Meet wanna-be homeowners, mortgage originators, The enablers. AKA the rating agencies...this is courtesy of Courtney Comstock, a writer at Clusterstock.

SEC case against Goldman and Fabrice Tourre* has a spotlight back on the mortgage crisis. Tourre allegedly packaged CDOs filled with very risky mortgage bonds and then marketed them to investors by telling them that Paulson was long. He wasn't. Michael Lewis's book, "The Big Short", explains very well what happened during the crisis - who was long, who was short, and how they did it.

Read More or as a Slideshow

Who is "Fabulous Fab" Fabrice Tourre? Click here for Details and find out.

*Fabrice Tourre's Bloomberg Profile

Friday, April 16, 2010

Mass. Senator - 'Wall Street-backed' - Can’t Explain Opposition to Financial Reform

In his weekly address, Obama called Senate McConnell’s mantra that the financial regulatory reform bill would amount to a bailout bill a “cynical and deceptive” argument. Obama said he will veto a financial regulatory reform bill that does not regulate the derivatives market properly. See More.

Summary is from Asked by the Boston Globe how he'd like to see the bill improved, Ted Kennedy's replacement in the Senate doesn't appear to know what it was he wanted changed though is against an extra layer of regulation.

Boston Globe wrote that Sen. Brown appeared to oppose the creation of a consumer protection agency within the Federal Reserve. 'It's more government, it's more government regulation at a time when businesses are trying just to pay their bills,' he said. 'Is that good? . . . If it's an area we need to fix, then I'm certainly open to it. But I haven't heard that that's the biggest thing that's problematic with it.'"

Bloggers immediately jumped down Brown's throat, pointing out that he received a veritable truckload of cash from the financial services industry just before his election.

ThinkProgress, the blog of the Center for American Progress, noted that their analysis found that Brown received $200,000 in campaign donations from Wall Street and business executives. $106,000 came from Wall Street executives alone. Chamber of Commerce, a Republican-oriented trade group, also spent $1 million on issue ads supporting Brown in the final days of his campaign, ThinkProgress noted.

In picture above from left, Senators John Ensign, Republican from Nevada, Scott Brown of Massachusetts, and Tom Carper, a Democrat from Delaware, chatted on Capitol Hill on April 15, 2010. (Associated Press)

Wednesday, April 14, 2010

Obama Financial Reform Push | Hedge Fund, Private Equity Compliance opportunity

President Obama met with Democratic and Republican leaders from Congress to discuss passing an overhaul of financial regulation. House passed its version of regulatory reform, and the Senate banking committee approved its bill. Republican opposition to the legislation has caused it to stagnate in the full Senate as reported by Reuters and AP.

Rosenthal Job Board now shows: Alternative Investment Compliance Officer: Opening is with an Investment Bank in NY. Candidate must have experience w/Private Equity, CLOs, Hedge Fund of Funds. Please review the job description.

PICTURED: Sen. Mitch McConnell of Ky., center, meeting w/reporters in Washington, Tues, 4/13/10 flanked by Sen. Lamar Alexander, R-Tenn., Sen. John Cornyn, R-Texas, and Banking Committee Ranking Republican Sen. Richard Shelby, R-Ala. (AP Photo)

Tuesday, April 13, 2010

Setting up a Mutual Fund - Webinar Today: Registration changes on the Buy Side ?

Thinking about Registration changes on the Buy Side ?

YOU ARE INVITED to a free Webinar hosted by Garrity Graham

Setting up a Mutual Fund


April 13th, 2010 Time: 11:00 a.m. – 12:30 p.m. EST

-Disclosure requirements - migrating from private to public disclosure
-Practical issues with accounting and disclosure regulations
-Service providers - how they help and assist fund companies comply with SEC regulations
Presented by: Tom Siedzik, Senior Vice President, Strategic Business Development, Bowne & Co., Inc

-Role of the Fund Administrator: unregistered versus registered products
-Areas of emerging capabilities
-Current market trends and outlook for the future
Presented by: Keith Slattery, Senior Vice President, Fund Administration, State Street Global Services

-What are the differences between a traditional hedge fund, a registered hedge fund and a mutual fund?
-Converting an existing traditional hedge fund to a mutual fund.
-Starting a mutual fund from scratch.
-Things to watch out for the hedge fund CCO who is now a mutual fund CCO.
Presented by: Philip Thomas, Garrity, Graham, Murphy, Garofalo & Flinn.

Each speaker will provide a presentation followed by a joint Q&A period at the end of the session, moderated by Philip Thomas, Banking and Financial Services, Garrity Graham

To register, please click here.

The sound of the webinar will be broadcast over your pc speakers, you will only need to dial into the teleconference if you do not have sound on your pc. Questions will be submitted through online chat.

If you are unable to attend the live session, a recording will be made available after the event.

Garrity, Graham, Murphy, Garofalo & Flinn, P.C.
40 Wall Street
28th Floor
New York, NY 10005
Tel: 646 512 5717

72 Eagle Rock, Suite 350
East Hanover, NJ 07936
Tel: 973 509 7500 x2272

Thursday, April 8, 2010

"You could've, you should've and you didn't" do enough to regulate

The first to testify to the Financial Crisis Inquiry Commission (FCIC), was former Fed Chairman Alan Greenspan who defended the central bank's record on consumer protection. Phil Angelides, who is chairman of the panel, asked Greenspan. "You could've, you should've and you didn't" do enough to regulate. More from WSJ (via The Australian) in piece titled "Greenspan, panel spar over Fed's role in financial crisis."

here's this last friday's character request. Never had reason... on Twitpic

Could Greenspan or anyone have achieved becoming a Super Regulator? Could anyone? Is that what is needed? A Regulator Daredevil to keep up with producers and bankers? Will the Oversight Panel now proposed be approved by the Senate? What about a new US Systemic Risk Regulator ?

Saturday, April 3, 2010

Consumer Protection and Financial Regulatory Reform: Click to win $25K or stop emptying your wallet

Have you seen ads to Stop the CFPA? It is appearing today at this Compliance and Financial Blog.

Click on the Advertisement and then you go to, a nicely put together website credited to the U.S. Chamber of Commerce. Includes various videos, news links which include these articles: CFPA: Duplication, Not Consolidation: The CFPA will subject the vast majority of businesses to two separate—and entirely overlapping—layers...CFPA: Adding to Conflict and Inconsistencies...Don’t overthink fiscal oversight (29 Mar 2010)- The Denver Post

SR Note: Nice to have well-financed, targeted ads on this Blog. The CFPA ad rotates with TD Bank Mortgage ads, where you can click to enter a contest to win $25,000 and other non-image plain link ads. You may need to refresh the screen to see any particular ad.
Stop the CFPA

Friday, March 26, 2010

Where Compliance Pros Connect Online

Rosenthal Recruiting was included in a post today on - part of The Wall Street Journal Digital Network - in an article called “Where Compliance Pros Connect Online.”

In addition to FINS' mention of what she referred to as "Compliance Oversights", a Rosenthal Recruiting 'trusted partner' was included as well. Bill Singer, whose Broke and Broker blog is listed at was also included in the blogs section of the article.

Here is an excerpt and the parts about 'Compliance Oversight':

Now that financial regulation reform has a chance of passing, compliance has never been so important. It will be up to compliance officers to ensure that their companies meet all the new demands — whether at an investment bank or a PE shop.

If you’re looking to keep up with the latest on all the new decrees or just a little cyber-networking, here’s a guide to online communities for compliance officers.

-Broker Dealer, Investment Advisor Compliance Officers brings together, you guessed it, BD and IA compliance officers -- and has nearly 700 members. It's run by compliance recruiter and blogger Stuart Rosenthal (see below).

- Compliance Oversights is maintained by Rosenthal, the owner of the Broker Dealer, Investment Advisor Compliance Officers LinkedIn group. Rosenthal, a former compliance officer-turned-recruiter, gives a recruiter's perspective on compliance hiring.

Please follow the link to view the entire article and see the compliance-related LinkedIn Groups, blogs, and Twitter accounts FINS recommends.

Tuesday, March 23, 2010

Can and Should SEC Careers be More Attractive?

Can regulatory agencies enforce and put in place new rules, without being able to recruit, train and retain effective staff? When it comes to the Securities and Exchange Commission (SEC), few would argue the need for upgrading employee training to ensure that financial malfeasance is detected sooner - this is written by FINS - used the word "sexy" and an editor there suggested it for this Compliance and Financial Oversight Blog.

A recent op-ed in the New York Times proposed a readjustment in how the SEC is run. Instead of encouraging lawyers to come work for the Commission it suggested a Foreign Service-esque program that would cater to all backgrounds.

The author, a former Chief Compliance Officer and Director of a securities exchange, suggests the following to retain top talent at the SEC:
1. Offer career tracks that hew toward specialties, such as consumer protection and financial fraud.
2. Make employees eligible for pension after 20 years of service.
3. Establish a financial training institute -- comparable to the Foreign Service Institute -- that would allow for continued education. Read on for details on making an SEC career more attractive.

Saturday, March 20, 2010

Lehman Whistle-Blower's Letter & Outrage About Regulator Bonuses

One person who has looked good in the Lehman mess is Matthew Lee. In May '08, Lee sent a letter to management detailing problems with firm accounting. The letter didn't mention Repo 105, though Lee told Lehman auditor E&Y about that a month later, it does mention several other issues. DealBook obtained the May 16, 2008 letter by Lee, and it's available for you to read. The letter was addressed to Martin Kelly, Lehman controller; Gerard Reilly, head of Capital Markets Product Control; CFO Erin Callan; Christopher O’Meara, Chief Risk Officer. Please click here for a link to Dealbook and the letter.

Did you see reports this week about government regulators' bonuses?'s Julie Steinberg wrote a piece and asked where's the outrage ?
Recent documents obtained by AP under the Freedom of Information Act show that government regulators received bonuses during the lead-up to the financial crisis. From 2003 to 2006, the FDIC, the Office of Thrift Supervision and the Office of the Comptroller of the Currency (the three offices that monitor most US banks), gave out $19 million in bonuses.

As FINS noted 'each employee wasn't taking home millions like ibanking brethren. But some took home thousands in a bonus that increased their salaries by 25%. Moreover, $8.4 million was allocated to financial examiners, the guys who are supposed to look at bank documents and catch potential problems. Oops. Guess these guys didn't deserve their perks, either.Bonuses totaling thousands of dollars don't make for scintillating sound bites, but American taxpayers should know what else their money funded.'

Saturday, March 13, 2010

Lehman - Shades of Enron: Will there be a Criminal Case ?

Spring in the air, will there be any Lehman canaries?

WSJ reports today that Legal Experts Say a Lehman Criminal Case Would Be Difficult.

Peter Henning follows white-collar crime issues for DealBook.
Henning notes that the bankruptcy examiner’s report filed by Anton Valukas on Lehman discusses accounting gimmicks reminiscent of how Enron tried to prop up its balance sheet in 2001 before it collapsed.

Henning writes the canary in the coal mine for whether there will be a criminal case is if we see executives below the executive suite agreeing to cooperate. Prosecutors work from the lower levels of management and then work their way up the chain. A criminal case will need cooperating witnesses to flesh out what happened because the documents and e-mail alone will not be enough to prove intent.

Henning notes that, accounting fraud cases generally take at least 18-24 months to develop, at which point the government will decide to proceed or allow the investigation to lapse. We are almost to that point, so the next few months will be crucial to seeing whether any criminal charges emerge from the collapse of Lehman Brothers. As the TV announcer says, “Stay tuned.”

In the now nearly 10-year old ENRON case, a powerhouse team of lawyers for former Enron CEO Jeffrey Skilling filed into the Supreme Court earlier this month to argue that Skilling's conviction on fraud, conspiracy and insider trading was constitutionally flawed and subject to jury bias. ABC News reported on Skilling and received 51 comments.

Skilling's lead lawyer, Sri Srinivasan of O'Melveny & Meyers, told the Supreme Court justices that the trial court judge had subjected Skilling to "deep-seated bias" in the community when he had refused Skilling's requests to have the trial moved from Houston. WSJ reported that Skilling received a Supreme Mixed Reception.

Thursday, March 11, 2010

Geithner Warns EU on HF and PE Regulation about Protectionism

U.S. Treasury Secretary Geithner has written to the European Commission warning that plans to regulate hedge funds and private equity firms could cause tensions with Washington, The Financial Times reported.

Citing a letter but not quoting from it directly, according to the FT report. Geithner wrote to Michel Barnier, European commissioner in charge of market regulation, on March 1 saying the EU was headed for a clash with the US and Britain if the planned rules proved overly protectionist. Read More at NYT summary.

Tuesday, March 9, 2010

Big Firm Strategic Pick Ups & Niche Firm Start Ups

Way Up from the bottom, with Wall Street and Big Bank's recent financial results, Rosenthal Recruiting sees the 'Employment Scene' picking up with the biggest firms strategic moves and smaller niche firms launching, expanding or adding capabilities such as Research and revenue producers.

Example of a new - or 'reformed' niche entrant: Mark Madoff will start his own research boutique firm. "Making up Madoff" (reported by Dealbreaker)
Link for more, go to Dealbreaker to read about the email Madoff sent to friends.

Reported yesterday by Bloomberg, WSJ and Business Week -- Morgan Stanley hired Citigroup’s Gary Shedlin, whose clients include BlackRock, now the world’s biggest money manager. Dealmaker magazine named him “top rainmaker” in the financials sector in 2006.

Shedlin, 46, will be a vice chairman, said an MS spokeswoman. Morgan Stanley's new banker helped NYSE Group Inc. create the first transatlantic securities market with its 9 billion euro ($12 billion) purchase of Euronext. Shedlin started his career at Lazard Freres . In 2004, Shedlin advised Bank One and its CEO, Jamie Dimon, on a merger with J.P. Morgan Chase.

Thursday, March 4, 2010

Volcker Rule would Ban Banks from investing in Private Equity or Hedge Funds

President Obama yesterday sent Congress the Volcker Rule language, and as PE HUB notes it would indeed ban banks from investing in private equity or hedge funds. If enacted, this would mean at least two things: (1) Banks with direct investing arms would have to divest, either via sales to PE firms or indipendent spinouts. In either case, it's unclear if existing bank LP commitments to those platforms would be grandfathered in. (2) Banks would not longer be able to be LPs in private equity funds, thus depriving the alternatives market of a major capital source. Again, the grandfathering issue arises -- although perhaps this is where secondary funds can spend all that cash they've been hoarding. Read More from Reuters PE Hub.

Thursday, February 25, 2010

I-Bank Pay Potential Remains Stellar & for Some College Grads too

Financial crisis was the worst in a generation — unless you were an American investment banker, Reuters' Breakingviews says. Employment in the securities industry fell by just under 79,000 positions from the peak in June 2008 to last month, according to the Bureau of Labor Statistics. That’s no small number. But it’s actually 14,000 shy of the number of jobs lost during the rout of March 2001 to October 2003 that followed the burst of the dot-com bubble.

We'll Pay You Anyway (BusinessWeek)
RBS may pay out $2 billion in 2009 bonuses for i-bankers. Not too shabby for a bank that’s 84% owned by British taxpayers. Summary via NYT Dealbook below.

Nomura to Almost Triple Salaries for Some University Graduates (Business Week too)

Royal Bank of Scotland (RBS or RBOS?) which is majority-owned by the government after a 2008 bailout, said Thursday it had set aside more money to pay bonuses to its investment banking staff after reducing its losses last year, New York Times reports.

The bank narrowed its 2009 loss to £3.6 billion, or $5.5 billion, last year compared to a £24.3 billion loss in 2008 — one of the biggest in British corporate history. Shares in R.B.S. rose 6.7 percent in London by midday because the loss was smaller than some analysts had expected, and the bank also said loan losses probably peaked. Read More »

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