When Treasury Secretary Henry Paulson Raised the Information Ante

On July 28, 2008, then-Treasury Secretary Henry Paulson held a curious meeting in New York with about a dozen hedge fund managers. At the time of the meeting, Bear Stearns had already been forced into a fire sale to JP Morgan Chase for $4 a share four months earlier, and the hybrid mortgage housing agencies, Fannie Mae and Freddie Mac, which together had more than $5 trillion in mortgage-backed securities…
Read more...Tags:confllict of interest , fiduciary , Governance , Henry Paulson , transparency
Why Fee Disclosures Will Be Traumatic for Many 401(k) Plans

April 2012 will be a traumatic time for many 401(k) plans. That’s when 401(k) plans will be forced to disclose the fees they pay to their plan administrators. For many plans, this will not be easy. Like a low tide, it will show which plans are well managed and which have been wasting their money on unnecessary services that increased plan costs and wasted corporate funds.
Read more...Tags:12b-1 fees , confllict of interest , fiduciary , financial reform , fund expenses , transparency
Top Regulators Examining LIBOR Rate Fixing

Large banks which set one of the institutional investing world’s most important interest rate-setting benchmarks–LIBOR–are being accused of price fixing by some of the largest regulators in the world. In a series of lawsuits filed in 2011, plaintiffs charge that dating back to the start of the current financial crisis in 2008, 19 international banks comprising the panel which determines the daily LIBOR (London Interbank Offering Rate) have manipulated market…
Read more...Tags:confllict of interest , fiduciary , housing fraud , transparency
Volatility Takes Its Toll on Long-Term Investing

Average Annual Total Returns (as of 10-31-2011) YTD Returns at NAV 1 Year 3 Years 5 Years 10 Years 15 Years Standard & Poor’s 500 Composite Index N/A 8.07% 11.41% 0.25% 3.69% 5.77% DJIA N/A 10.34% 11.80% 2.53% 5.39% 7.04% NASDAQ N/A 7.06% 15.97% 2.55% 4.73% 5.39% MSCI All Country World Index ex- USA N/A −4.25% 13.43% 0.08% 8.05% 5.39% …
Read more...Tags:financial education , fund expenses , investing
Beware of Misleading Retirement Calculators in 401(k) Plans

By Neil Plein From: Invest N’Retire, July 22, 2011 For the complete article, visit Invest n’Retire Having a retirement calculator should be a good thing. It helps to perform computations and projections that would otherwise be out of reach to the common 401k participant. The intent of calculators are primarily twofold; to help a participant understand what their retirement savings goal is and to present the necessary contribution rate needed…
Read more...Now It’s Europe’s “Lost Decade”

From about 1991 to 2001, Japan suffered what is called its “Lost Decade,” as a result of steep declines in housing prices and the stock market. During this period, commercial real estate prices fell by about 87%, accompanied by economic stagnation and deflation. This period saw the stock market decline by 60% between late-1989 and August 1992. By 2001, Japan had entered its “lost decade.”
Read more...An Individual Investor’s Revenge on Wall Street

Millions of American investors lost many billions of dollars or more as a result of the 2008 mass housing and financial frauds. But very few people have taken the time to investigate why they lost money and what the U.S. financial services industry did to help create the crisis in the first place or prevent it from happening.
Read more...Tags:baby boomers , confllict of interest , fiduciary , financial reform
Financial Fraud Prosecutions Hit 20-Year Low: Study

Federal prosecutions fof certain financial crimes has reached a 20-year low, according to a new report from the Transactional Records Access Clearinghouse (TRAC) at Syracuse University.
Read more...Tags:fiduciary , financial reform , Governance , mutual fund reform , transparency
Age 80 is the New Retirement Age, Survey Says

The nation’s average retirement age is rising from 65 to 80, according to Wells Fargo & Co.
Read more...The New World Economic Order Goes Mainstream

It looks like the New World Economic Order has gone mainstream. That seems to be the case when Merrill Lynch Wealth Management offers its opinion about the re-alignment of the global economy, the idea of buy-and- hold investing, the role of commodities in a portfolio, risk management and the declining role of the U.S. consumer in shaping the direction of the world economies in a new video interview. These are…
Read more...