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Now new research released Wednesday has shed light on this trading frenzy and concluded that a change in how Robinhood and other online brokers report fractional trading data was a culprit. “This volume is due to the interaction of a well-intentioned but misguided FINRA reporting rule, Robinhood trading, and fractional shares,” wrote the authors — Robert Bartlett at University of California, Berkeley, Justin McCrary at Columbia University and Maureen O’Hara at Cornell University. In 2017, the Financial Industry Regulatory Authority started requiring brokers to report fractional trades — sometimes just 1/100th of a share — as if they were for...

The secret of life is honesty and fair dealing. If you can fake that, you've got it made –Groucho Marx I suspect the SEC, FINRA, and CFTC are big fans of Groucho Marx, or at least his observations on fair dealing. How else could they justify turning a blind eye to a global media powerhouse such as Reuters selling early access to market-moving information? How could these authorities not condemn a practice like high-frequency trading (HFT), which causes significant market disruptions on a daily basis and destroys investor confidence? Why would agencies that are charged with oversight of the most...

USAA members and friends are urged to contact U.S. Senate regarding financial services legislation. USAA is facing a serious challenge due to financial services legislation, known as S.3217, that is being considered by the U.S. Senate right now. We are reaching out to our members, employees and friends in an effort to share details about how the proposed legislation would impact USAA, and we are asking them to take action. Legislation Links S.3217 As Filed S.3217 Committee Summary S.3217 Committee Report A message from USAA President and CEO Joe Robles that provides more details is being e-mailed to members. Please...

Great Britain just took the definition of America’s strongest ally to a whole new level. How so? News this morning that the U.K.’s Serious Fraud Office (SFO) will not pursue legal action against the local operations of Bernard Madoff Investment Securities is just another kick in the balls to investors everywhere and the innocent Madoff investors especially. The New York Times highlights this breaking news story in writing, Britain Will Not Pursue Legal Action Against Madoff: Britain’s Serious Fraud Office said Tuesday that it would not pursue legal action against the local operations of Bernard L. Madoff, the U.S. financier...

Madoff: It's 'Amazing' I Didn't Get Caught Sooner Posted By: Scott Cohn Senior Correspondent, CNBC 30 Oct 2009 | 07:26 PM ET Jailed swindler Bernie Madoff said it was "amazing" that he didn't get caught sooner in his multi-billion-dollar Ponzi scheme, and that everything the SEC did to investigate him prior to 2006 was a waste of time, according to a jailhouse interview he gave to SEC Inspector General H. David Kotz. Madoff also told Kotz that SEC Chairwoman Mary Schapiro was a "dear friend," although she "probably thinks, 'I wish I never knew this guy.'" For the SEC's Full...

Two former investors are suing the Securities and Exchange Commission for $2.4 billion in damages, claiming the agency acted with negligence while examining Ponzi schemer Bernard Madoff's investment business. The 63-page complaint, filed by Phyllis Molchatsky and Dr. Steven Schneider, claims the agency engaged in "serial, gross negligence" over the course of 16 years. It alleges that because the SEC's negligence occurred during the course of its regular functions, rather than when crafting policy, the agency is not shielded by the doctrine of sovereign immunity. .....

The Financial Industry Regulatory Authority didn't fully probe Bernard Madoff's firm and repeatedly failed to investigate tips about R. Allen Stanford's alleged $7 billion fraud, an internal report found.

Securities and Exchange Commission Inspector General David Kotz has issued his long-awaited report on how the agency missed the Bernard Madoff Ponzi scheme. In a statement e-mailed to CNBC Monday afternoon, Kotz said the 450-page report is the result of an exhaustive, eight-month investigation. .....

The industry self-regulatory organization that was supposed to police the brokers at the Stanford Financial Group acknowledges that a Stanford employee alleged in 2003 that the company was running a Ponzi scheme, but the organization did not follow up on the claim based of its own policy, which has since been changed. The disclosure comes in testimony from Daniel Sibears, Executive Vice President of the Financial Industry Regulatory Authority, FINRA, prepared for a Senate Banking Committee hearing on Monday. In 2003, Stanford advisor Leyla Wydler alleged in an arbitration case that the company was "engaged in a Ponzi scheme to...

WASHINGTON – House lawmakers on Wednesday accused the Securities and Exchange Commission of impeding their probe into the agency's failure to uncover the alleged $50 billion Bernard Madoff fraud. The clash between lawmakers and high-ranking SEC officials at a House Financial Services subcommittee hearing came after the man who waged a decade-long campaign to alert the regulators to problems in Madoff's operations denounced the agency for its inaction. ... In loud, angry exchanges, lawmakers threatened to issue subpoenas to SEC officials to compel their testimony in the case.

Mr. Markopolos Regrets His Failure to Persuade Investors; Tips for the SEC Harry Markopolos, the Boston-based investor-turned-investigator who for years warned regulators that Bernard Madoff was running a huge Ponzi scheme, has received pitches to appear on television shows, make movies and write books elaborating on his experience. Later this month, he is scheduled to appear before Congress to present recommendations to improve the Securities and Exchange Commission. But rather than enjoy a sense of vindication, Mr. Markopolos says he is miserable. He has trouble sleeping and is haunted by the apparent suicide of Thierry Magon de La Villehuchet, a...

Several top U.S. securities enforcement officials will testify at a Congressional hearing into Bernard Madoff's alleged $50 billion fraud, the Senate Banking Committee said Monday. The committee has called for testimony by the Securities and Exchange Commission's director of enforcement, Linda Thomsen, and the SEC's director of compliance, inspections and examinations, Lori Richards. It has also asked Stephen Luparello, the interim CEO of broker-dealer watchdog the Financial Industry Regulatory Authority, to testify. Both regulators have been criticized for missing one of the largest investment frauds in history. Incoming SEC chairman, Mary Schapiro, who was previously FINRA's chief executive, has said...

Is the author of this complaint any relation to Madoff. They appear to have the same last name.

Bernie Madoff's investment fund may never have executed a single trade, industry officials say, suggesting detailed statements mailed to investors each month may have been an elaborate mirage in a $50 billion fraud. An industry-run regulator for brokerage firms said on Thursday there was no record of Madoff's investment fund placing trades through his brokerage operation. That means Madoff either placed trades through other brokerage firms, a move industry officials consider unlikely, or he was not executing trades at all. "Our exams showed no evidence of trading on behalf of the investment advisor, no evidence of any customer statements being...

Everyone caught up in the scandal of accused Wall Street swindler Bernard Madoff wants to know where the money is. Madoff, who authorities say confessed to losing $50 billion in "a giant Ponzi scheme," has given a list of his assets, liabilities and property to U.S. regulators. But the thousands duped, from the beach cities of Florida to yacht clubs of the Mediterranean to Hollywood and Manhattan, may never see it. And judging by the scandals involving Bayou Group hedge fund, WorldCom and Adelphia Communications, any money they may see down the road will likely be a fraction of what...

...Obama was set on Thursday to name seasoned regulator Mary Schapiro to head the Securities and Exchange Commission...