Category: Uncategorized
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On Judicial Ethics, Money, and Politics
I practiced law in a smaller town. The Circuit Court jurist was Judge Edwards. With a reputation for adherence to proper procedure, timeliness for hearings, and moving cases along, he was strict, but fair. And he steadfastly avoided conflicts of interest, or any appearance of impropriety. He even chose to reside across the county line,…
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Fiduciary Papers #8: Brokers’ and Investment Advisers’ Duty of Due Care, and Due Diligence in Particular, Receives Renewed Emphasis from SEC Staff
In the design and management of investment portfolios, both brokers (under Reg BI) and investment advisors (as fiduciaries) possess a duty of due care. This includes undertaking sufficient due diligence as to both investment strategies, as well as in the investment product selection process. As discussed below, in April 2023 the Staff of the U.S.…
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The Collapse of SVB: Thoughts on Moral Hazard, Market Fundamentalism, Fiduciary Duties, and the Scope of Government Regulation
ON THE EXISTENCE OF MORAL HAZARD IN BANKING (ONCE AGAIN) The collapse of Silicon Valley Bank and Signature Bank in led to a March 12, 2023 joint statement from Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, and FDIC Chairman Martin J. Gruenberg, in which they declared, with respect…
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Teaching a New Course in Spring ’24: “Legal and Regulatory Aspects of PFP” … Do You Have Ideas for Content?
I’m currently developing a new course for undergraduate students studying within our concentrations in: (1) personal financial planning: (2) investments; and (3) financial services. All of the students are within our B.S. Finance degree. This new course, Legal and Regulatory Aspects of Personal Financial Planning, kicks off in January 2024. Our goal in our degree…
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Ten (TOUGH) Questions You Should Be Asking Your Financial Advisor
HERE IS A DOCUMENT THAT YOU CAN PROVIDE TO YOUR CURRENT, OR PROSPECTIVE, FINANCIAL ADVISOR, TO SEE WRITTEN ANSWERS TO THE TOUGH 10 QUESTIONS. FOLLOWING IS THE TEXT FROM THE FILE, ABOVE, FOR THOSE WHO PREFER TO READ IN THIS MANNER. 10 Tough Questions You Should Ask Any Financial Advisor By Ron A. Rhoades,…