Sunday, March 18, 2012

The Mystery Behind Global Mass Resignations in the Capital Formation and Political Arena That Has Put a Wet Blanket Over Our Worldwide Recession is No Mystery

By Nicholas Contompasis

The implementation of Dodd-Frank occurred on September 19th 2011. Now, if you notice this chart, which tracks resignations within the banking and financial industry, you’ll see a great surge of executives bailing out in the fourth quarter of 2011 and it continues into the first quarter 2012. This is no mystery if you understand the penalties and reporting requirements this new Act enforces.

The mass exodus hasn’t stopped and continues to gain momentum as these executives realize that if they don’t quit they could end up in jail. Further indications show they could go to jail, even though they’ve resigned, depending on their political influence. Example, will former MF Global chief executive and former Governor Jon Corzine go to jail for his stealing of over a billion dollars? Of course he won’t! But, many who worked for him will.
Many conspiracy theorists on the internet are pushing ideas that these people are resigning for more farfetched reasons. But, anyone that’s been following this new strict Act understand that the capital formation industry is now under attack by an Act that was basically adopted by American socialists in congress during their two year majority rein (2008-2010) in all three branches of the U.S. government.
The Dodd-Frank Act comically was named after the two individuals who were more responsible for the derailing of our capitalist economy than any other politicians besides former President Bill Clinton. The naming of the Act is now seen by many in the capital formation industry as a whitewashing of their own fraudulent and treasonous acts. You could say they were saving their own hides by pointing the finger at everybody else.
To now, threaten former executives for merely following the rules of the road during this unprecedented era of growth is laughable. To now, at this critical point of economic uncertainty throw a wet blanket over the industry that has created more jobs globally over the past sixty plus years is a direct attack on our American way of life and could result in dire consequences.  
But, it’s starting to happen and everybody’s disconnecting phones and leaving no forwarding address!!!

Taken from the Securities and Exchange Commission website -
“The Dodd-Frank Act
Background: Title IV of the Dodd-Frank Wall Street Reform and Consumer Protection Act makes numerous changes to the registration and reporting and recordkeeping requirements of the Investment Advisers Act of 1940. Among these is the requirement that advisers to most private funds (hedge funds and private equity funds) register with the Commission. Historically, many of these advisers had been exempt from registration under the so-called “private adviser” exemption. The Dodd-Frank Act replaces this exemption with several narrower exemptions for advisers that advise exclusively venture capital funds and advisers solely to private fund with less than $150 million in assets under management in the United States. Foreign private advisers and advisers to licensed small business investment companies also are exempted.
The Dodd-Frank Act provides the Commission with the authority to collect data from registered investment advisers about their private funds for the purposes of the assessment of systemic risk by the Financial Stability Oversight Council. In addition, the Dodd-Frank Act modifies the allocation of responsibility for mid-sized advisers between state regulators and the Commission.
The definitional and transitional rules became effective on July 21, 2011. The implementing rules generally become effective on September 19, 2011.
On October 31, 2011, the SEC adopted rules (jointly with the CFTC for dually-registered advisers) requiring advisers to hedge funds and other private funds to report information for use in monitoring systemic financial risk.”


Anonymous said...

This is a great post. The only thing I quibble with is I think we did end up with too much fancy unproductive finance. Finance used to be 15% of the economy now it's 35%. Still, your point survives. Congress is lousy at regulating finance and everyone pays, either through less general prosperity or fraud. --NARNfan

Anonymous said...

Interesting that the implementation of the Dodd-Frank Act occurred in September 2011 ( 911) Almost exactly
one decade after 911. Interesting!