The SEC is ostensibly around to help you avoid securities fraud. And it does, but only to an extent. Much of what it does is pure theater.
That’s why the SEC has had a poor record in discovering massive frauds and Ponzi schemes, uncovering them usually by chance, and only after they have already been committed and exposed.
But in their mad dash in reacting to fraud, instead of preventing the bulk of transgressions, the SEC does lots of monetary damage. They tend to pick the average, uninformed investor’s pocketbook by causing unnecessary expense of legal fine-tooth-combing, printing and mailing.
And requires such action constantly, perhaps to a far greater extent than is necessary to alert an ordinarily informed investor.
Just one example: I refer to the expense of having banks, mutual funds and corporations send out useless, expensive, legalese financial literature, that the recipients do not read because they cannot understand the terms the SEC has the senders use.
The only ones who can profit are the lawyers. If a dot or letter t isn’t properly crossed or is missing, the lawyers will sue the senders of that hard-to- read and comprehend mail. Again, at the expense of the poor mail recipients who never benefit from the impractical information anyway.
No comments:
Post a Comment