It’s About Time: FTC 16 CFR Part 255
Proper disclosure means different things to different people. In the investment “advice” world, proper disclosure is different for Registered Investment Advisors than brokers or insurance agents. In the investment “publishing” world, publishers typically try to hide behind their “freedom of...
Bankrupt Deadbeat Banks Stiff Taxpayers
Only a few weeks ago, We The People seemed to be turning a profit on the U.S. Treasury’s investment in banks via the Troubled Asset Relief Program, or TARP. Not so fast. Yes, a few banks repaid the government with interest. As I noted at the time, their main motivation was probably to escape...
The G-20 Pittsburgh Summit
The G-20 heads of government and finance ministers met in Pittsburgh last week. Officially named “The Group of Twenty Finance Ministers and Central Bank Governors,” the organization was established in 1999. According to their website the G-20’s purpose is “to bring together systematically...
UNG May Resume Share Creation
The United States Natural Gas Fund LP (UNG) filed a Form 8-K with the SEC on Friday (9/11/2009) indicating that it may resume offering new shares on September 28. You may recall that UNG stopped issuing new shares in the second week of July. Additional background can be found in our CFTC Camel Sticks...
DXO Becomes First Victim of CFTC Activity
PowerShares DB Crude Oil Double Long ETN (DXO) became the first apparent victim of the recent CFTC activity surrounding exchange traded products. Deutsche Bank (DB) announced today (9/1/09 press release) that it will redeem all outstanding shares of DXO after the market close on September 9. Unlike...
CFTC Camel Sticks Nose in ETF Tent
The alphabet soup of federal agencies involved in financial regulation is truly staggering. For ETFs the web is somewhat less tangled but still confusing. Now the Commodity Futures Trading Commission – an agency that sounds like it shouldn’t have much to do with ETFs – is flexing...
Insincere Concern – the Banning of Leveraged ETFs
Some brokerage firms are banning the sale of leveraged and inverse ETFs. They claim to be taking these steps out of concern for their clients, but the facts paint a different picture. This story has been 16 years in the making. Why all the fuss now? In June, FINRA issued a warning to brokers and...
More Leverage, Please: ProShares Goes 3x S&P 500
The appetite for risk is apparently healthy enough for ProShares that it launched its first 3x leveraged ETFs today. ProShares UltraPro S&P 500 (UPRO) and ProShares UltraPro Short S&P 500 (SPXU) will be the firm’s most aggressive products yet. UPRO and SPXU are clearly intended as a counter...
ZICAM, Banks, and the Illusion of Safety
Two days ago I remarked on the new, improved regulatory structure the Obama administration proposes for the financial services industry. On the same day, the U.S. Food & Drug Administration (FDA) ordered a company called Matrixx Initiatives (MTXX) to stop selling its popular Zicam Cold Remedy. ...
New Financial Cops On The Way
On Wednesday President Obama is supposed to unveil his plan to overhaul the regulatory structure for banks and other financial institutions. Clearly such an overhaul is sorely needed. The SEC, CFTC, OCC, OTS, and assorted other agencies have been asleep for years. The question is whether the president...
