Tag Archives: do you’re due diligence

SEC investigating structured products: Déjà Vu all over again?

3 Apr
Never let it be said that the denizens at the Securities and Exchange Commission are a stodgy, humorless bunch. A recent WSJ article, Complex bond faces regulators Scrutiny , almost got me. I am not sure if they meant to have an early jump on April Fools, or if some fat fingers at the WSJ was involved.  In any event, well played Schapiro!
The Complex bonds being scrutinized, also known as “reverse convertible notes” falls under the broad investment category of structured products or in the old school vernacular Derivatives, the eleven letter four letter word.
According to the complaint, apparently the bad boys of Wall Street:
“failed to disclose the risks and fees to the investors before they bought the notes.” and possibly failed to disclose “potential conflicts of interests, such as selling a note linked to the stock of a company it is advising.”
Not only have we been down this path before, but with a few well placed directorships, maybe an IPO allocation or two, whatever the legislation and if indeed there is one, it will be tepid and ineffective. I have many reasons for my opinion but I will give three. One is history, two is legislating for greed, stupidity and downright laziness is nigh on impossible and the third I will give you at the end.

The Final Nail in the China MediaExpress Holdings Coffin

12 Mar

In what I think is one of the best investigative works I’ve ever read, Roddy Boyd went to China to meet with the CFO of CCME, but his meeting was cancelled. He and his experienced Chinese investor friend decided to visit CCME’s main office without notice, anyway.  What Roddy saw I can only describe as worse than even I suspected.  It appears the company is 100% absolutely positively a complete and utter fraud, top to bottom, inside & out.

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