Ethics of Investment---NOT!!!

[Gene Scarborough]

[Gene Scarborough]

When you read the above entire statement from Mr. Smith, he begs a real question in the "shades of grey:"

A man is making big bucks for the company / he is technically not violating the law / IS HE ETHICAL?

[KeithE]

Cudos to Mr. Smith and a word of warning to all investors.


and the

The quick “disgruntled" employee tactic. The pressure to conform when you are making >$500,000 a year (and who knows how much in bonuses) is strong. Greg has taken a principled stance at great personal sacrifice. Now he can count on being demonized. But Christians should support him.

I almost never take a financial company’s first suggestion for investing. (Made that mistake once with Merrill Lynch). It is usually an account that takes a large annual fee for themselves. In G-S case they were betting against the the very accounts they were pushing. These firms make no tangible product, just shuffle paper but have become among the most wealthy firms in the US by bilking “muppets". Take care.

[Gene Scarborough]

Question: What is the difference between good advice and bad advice from a Stock Broker?

Answer: A COMISSION!

[Gene Scarborough]

The Stock Market is rising once more as people forget the money they lost and want more.

This revelation on the activities of Goldman-Sachs belies their image created over some 30 years Mr. Smith worked for them. He is saying above that their purpose has changed from client-centered to profit-centered.

Remember C.S. Lewis' "Screwtape Letters" in which the evil spirit recommends the gradual slope to always draw your target toward the pit of Hell?

I am interested whether anyone has discovered the kind of Financial Advisor greed described above---or are you still trusting of you Advisors. It is hard to detect!!!

I was honest and treated my clients right. I know of other such advisors who told the truth and refrained from rolling investments over to get another commission. Since I dealt with Insurance and the investment of Cash Values I encountered people who distrusted their Insurance Agent and the Companies.

A.L. Williams built a kingdom with the "buy term / invest the difference" rant. In his case, they were selling expensive term insurance with higher commissions and few people ever did the investing he advocated. Those who did were subject to the wiles of their Stock Broker who cares less about taxable gains and pumps clients into whatever equity is paying him the most commissions.

AmWay uses aspirations to wealth to pump their troops to more sales of marginal products, in my experience---I was invited in my 30's under the guise of how Charles Stanley had one of the leading groups called "Stanley's Steamers."

All of this is done with smile-on-face / firm handshake / trusting client who is at his mercy!

I was honored as "Underwriter of the Year" by one of the leading Associations of LIfe Underwriters in NC---because I did my job with integrity. Other recipients of that award--one in particular--drove a fancy car / went through 3 wives / had his name on his big building, but would lie to his own mother for a bigger commission or rollover. Us honest agents knew his ploy, but he was often replacing our policies with his own slicker than slick approaches. One of the "integrity rules" of the ALU is that you don't replace your competitor's business unless he has put someone in a totally bad insured position and they ask for your help (2nd opinion).

Real integrity begins with the client rather than the Sales Leader's Club nice trip. That's a hard choice for some people who want "success at any price."

Lest we hop on the investment community---thank about the Big Church and high pay many driven Seminary Grads envision as they move into formal church ministry! Paul and Peter had this problem over "position" in the followers of Christ.

Not sure how to rename this Topic, but it would be more accurate with:

[Chris]

[Gene Scarborough]

None did---and there was no legal reason for it.

It is another picture of "buyer beware"---and if you don't have sense enough to check with your trusted insurance agent, then you get what you deserve.

The sales pitch was based on greed and most people are their own worst enemy over lust and greed!

I was enlisted to represent them before I committed to Ministers LIfe Insurance Company---great specialty company helping a special section of prospects. When I heard "The Coach's" tape it was all about motivation to sell his stuff and the word "dad bum" was in every paragraph = no real knowledge / motivation to get the agent rich quick!

The Insurance Industry simply adapted to a "variable interest" product changing with the economy. It's Cash Values had the benefit of non-taxable gains. Even there, too many Agents acted as if the inflation days of 23% interest were here to stay = now it is about 3-4% and that is where the old Whole LIfe products were---and far more secure than a changing market.

Insurance is for protection primarily, but the tax advantages far outweigh any pure Stock Market investment!!!

[Gene Scarborough]

On "60 Minutes" tonight there was a lead story of the Lehman Brothers Bank Collapse in 2007.

The main men interviewed were the head investigator who has all the cards turned up now. Sufficient evidence is clear that the CEO and upper management was aware of falsified financial records which defrauded investors and account holders of billions. To date, no one has been prosecuted when things clearly went on in total violation of SEC Regulatons and Federal Law.

The other interviewee was an accountant with Ernst & Young who discovered they were moving large sums of money to Britain and back each quarter to make records appear as though their red ink was going away. Again, it was a conscious effort on the part of upper management to fool investors. At last the Accountant refused to sign off on the financials and was terminated by Earnst & Young with no job in hand yet in 2012.

This whole thing becomes more evil and sordid with each passing day and it clearly happened under the Bush Regulatory days. It appears to have been going on for several years and no one did their duty to protect the American public. The accountant's final comment was interesting: "I get more fun out of betting in Las Vegas than dealing with Wall Street."

What good are laws and regulators if the rich enjoy telling lies right and left with no fear of prosecution? Anyone doing such with a Securities Liscense would quickly get prosecution from just defrauding a few of his clients in his practice. Here is a case of thousands of defrauded investors and billions of dollars which was a first chip to fall in "The Great Recession."