A Typical Wall Street Investment Firm

Here you will find the all the exciting details of how to do business in America. This isn’t boring theory or textbook learning. All of the examples are from current, real-world events. Learn from the greatest American business institutions and people how to operate in the U.S.

Corruption is rampant at U.S. financial institutions. Brokers sell products that many times are detrimental to their customers. Brokers may not even have basic knowledge about the products they sell. Some customers are treated preferentially. This is how business is now done in America.

Here is a real world example. On February 4, 2010, State Street Corp. agreed to pay $313 million to its customers. State Streets’s customers thought they had invested in a well diversified fixed-income fund. Little did they know that State Street had loaded up the fund with subprime mortgages. State Street maintained that the fund was well diversified. It wasn't. State Street then notified some preferred customers that they should redeem their shares in the fund. The other customers in the fund – they were screwed. State Street thinks some customers are more special than others.

Here are a few questions for Ronald E. Logue, State Street’s chairman and CEO.

You replaced the managers of the fixed-income fund. Are they still with your firm? They violated your policies and procedures. Did your terminate them? Did you recommend that their securities licenses be revoked? Did you just move them to another department so they can once again perpetrate financial rape?

The WSJ article stated that you recognize that meeting your fiduciary duties is critical. Did you meet your fiduciary duties when you told your customers the fund was well diversified when it wasn’t? Did you meet your fiduciary duties when you notified certain customers to redeem their shares thereby leaving the other customers in the fund at a disadvantage?

Are you the least bit concerned about the management of this fund Mr. Logue? Do you laugh you ass off about how you have deceived your customers?

Here are the last questions Mr. Logue. How angry do you think your customers are? How angry do you think the investing public is? I am livid.

What does this mean to you? Realize that corruption is rampant in the U.S. financial community. If you are a wealthy investor, you will be provided with advice to increase your investment returns to the detriment of non-wealthy investors. If you are a non-wealthy investor, you are screwed. Realize that the U.S. authorities do not have the resources to prosecute the massive corruption in the U.S. No one at State Street was prosecuted or lost their securities licenses. This ensures that the corruption will continue. Congratulations to State Street Corp. and Mr. Logue. You epitomize the U.S. financial system. This is how business is now done in America.