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.

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.
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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."

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
http://www.businessinsider.com/whos-who-in-cdo-scandal-2010-4#ixzz0lS3RNxwu

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

*Fabrice Tourre's Bloomberg Profile

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 RawStory.com 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)

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)

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

Today

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
Email: pt@garritygraham.com

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




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 ?

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 stopthecfpa.com, 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.

Where Compliance Pros Connect Online

Rosenthal Recruiting was included in a post today on FINS.com - 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 RosenthalRecruiting.com 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.

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.

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? FINS.com'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.'

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.

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.

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.

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.

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 »