by admin on June 8, 2012
Bill Singer harshly criticizes Finra in his latest column at Forbes. His comment concerns the case of Thomas Robert Vodicka, a registered Investment Company/Variable Contracts Products Representative since 2004. Vodicka maintained four separate checking accounts and wrote checks to himself for funds he didn’t have in order to pay bills and other expenses. As a result, he violated Finra Rule 2010. Vodicka was hit with a $5,000 fine and a six-month suspension.
The major question here is, why is Finra “playing the tough guy” with this broker who didn’t even harm his customers, but failing to adequately penalize the big fish like MF Global that treated customer funds with reproachable irresponsibility?
When I think about Lehman Brothers or Bear Stearns or MF Global, I have to scratch my head as I read about poor Vodicka. When I ponder the trading losses at JP Morgan or the equivocations from Goldman Sachs, Citigroup, and others, I have trouble reconciling the regulator’s zeal here. Finally, as the Facebook mess unfolds and I see the finger pointing by Morgan Stanley and the belabored definitions of what’s a “customer” from NASDAQ, I’m not quite sure who’s setting the regulatory priorities on Wall Street and what considerations are involved.
What do you think? Is FINRA just trying to make an example of Vodicka? Is it trying to compensate for its other notable failures?
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