Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
DOUBLE YOUR DONATION!
We don’t run corporate ads. We don’t shake our readers down for money every month or every quarter like some other sites out there. We provide our site for free to all, but the bandwidth we pay to do so doesn’t come cheap. A generous donor is matching all donations of $100 or more! So please donate now to double your punch!
FacebookTwitterGoogle+RedditEmail

Brokerman

So, you want to buy some stock in an American corporation.

And you go to your broker.

Brokerman, please help me.

I want to buy some stock in an American corporation.

But here’s the thing, Brokerman, sir.

Is Wall Street a safe neighborhood, sir?

Can’t safely go into Wall Street, with executives being led away in handcuffs, can I, Brokerman sir?

Calm down, calm down — Brokerman says.

It’s all media hype.

I’m here on Wall Street, and I haven’t been mugged, have I?

But Mr. Brokerman, sir, I’m watching television and see these corporate executives being handcuffed by big burly guys in blue jackets and big yellow letters on the back that say F-B-I.

Turn off your television. It’s all tabloid stuff, Brokerman says.

Lookee here, Brokerman says — I’ve got these ratings.

I take all the financial data from all the publicly held companies and rate each one, A to F — just like grade school.

Now — Brokerman says — here are a group of stocks that you can buy safely — because the computer has rated them A.

Don’t worry. Trust me.

Everything is going to be alright.

Trust me.

Yeah right.

Andersen — guilty, obstruction of justice.

ImClone Systems CEO — under indictment, insider trading.

Martha Stewart — under investigation, insider trading.

Enron — criminal investigation.

Or what about Adelphia, CMS Energy, Computer Associates, Dynergy, Global Crossing, Halliburton, Kmart, Lucent Technologies, MicroStrategy, Network Associates, PNC Financial Services, Qwest Communications, Reliant Resources, Tyco International, WorldCom, and Xerox?

All of them are now facing serious questions about their business practices.

Three Rite Aid executives — indicted for cooking the company’s books by overstating revenues by $1 billion.

Trust me.

Trust me.

Remember Merrill Lynch?

Remember the Merrill Lynch analysts who were telling their customers — trust me, buy this stock, this stock is highly rated?

And then they would turn around and e-mail their buddies — hey, this stock is crap, why are we recommending this crap to our customers?

And then New York Attorney General Eliot Spitzer gets ahold of the e-mails, brings some kind of enforcement action, and goes before the television, and says the case is settled, Merrill will pay $100 million.

But Spitzer doesn’t get Merrill to admit wrongdoing. And he signs some kind of agreement that is totally unenforceable.

He later admits that had he forced Merrill to admit wrongdoing, the firm would have gone kaput. Just like Andersen.

And Merrill Lynch isn’t the least of them. Most of the big investment companies are now under investigation by the states for misleading investors just like Merrill did.

Weiss Ratings Inc. is an independent ratings firm (<www.weissratings.com>).

Earlier this month, Weiss Ratings released a study that found that among the 50 brokerage firms covering companies that have gone bankrupt this year, 47 firms continued to recommend that investors buy or hold shares in the failing companies even as they were filing for Chapter 11 in the first four months of 2002.

Lehman Brothers maintained six buy ratings on failing companies, while Salomon Smith Barney maintained eight hold ratings up through the date the companies filed for bankruptcy.

Also sticking with buy ratings until the very end were Bank of America Securities, Bear Stearns, CIBC World Markets, Dresdner Kleinwort Wasserstein, Goldman Sachs, and Prudential Securities.

“This analysis shows that Wall Street’s record is far worse than previously believed,” says Martin D. Weiss, chair of Weiss Ratings “Even when there was abundant evidence that companies were on the verge of bankruptcy, over 90 percent of the latest ratings issued by brokerage firms continued to tell investors to hold their shares or buy more.”

So, what happens when people think that the Street is being overrun by criminals?

They don’t go there.

And that’s what investors have started doing. Pulling out.

As the Dow heads below 9,000 (James “Dow 36,000” Glassman, where art thou?), can anyone doubt why?

Russell Mokhiber is editor of the Washington, D.C.-based Corporate Crime Reporter. Robert Weissman is editor of the Washington, D.C.-based Multinational Monitor, and co-director of Essential Action. They are co-authors of Corporate Predators: The Hunt for MegaProfits and the Attack on Democracy (Monroe, Maine: Common Courage Press, 1999.

 

More articles by:

Russell Mokhiber is the editor of the Corporate Crime Reporter..

October 23, 2018
Patrick Cockburn
The Middle East, Not Russia, Will Prove Trump’s Downfall
Ipek S. Burnett
The Assault on The New Colossus: Trump’s Threat to Close the U.S.-Mexican Border
Mary Troy Johnston
The War on Terror is the Reign of Terror
Maximilian Werner
The Rhetoric and Reality of Death by Grizzly
David Macaray
Teamsters, Hells Angels, and Self-Determination
Jeffrey Sommers
“No People, Big Problem”: Democracy and Its Discontents In Latvia
Dean Baker
Looking for the Next Crisis: the Not Very Scary World of CLOs
Binoy Kampmark
Leaking for Change: ASIO, Jakarta, and Australia’s Jerusalem Problem
Chris Wright
The Necessity of “Lesser-Evil” Voting
Muhammad Othman
Daunting Challenge for Activists: The Cook Customer “Connection”
Don Fitz
A Debate for Auditor: What the Papers Wouldn’t Say
October 22, 2018
Henry Giroux
Neoliberalism in the Age of Pedagogical Terrorism
Melvin Goodman
Washington’s Latest Cold War Maneuver: Pulling Out of the INF
David Mattson
Basket of Deplorables Revisited: Grizzly Bears at the Mercy of Wyoming
Michelle Renee Matisons
Hurricane War Zone Further Immiserates Florida Panhandle, Panama City
Tom Gill
A Storm is Brewing in Europe: Italy and Its Public Finances Are at the Center of It
Suyapa Portillo Villeda
An Illegitimate, US-Backed Regime is Fueling the Honduran Refugee Crisis
Christopher Brauchli
The Liars’ Bench
Gary Leupp
Will Trump Split the World by Endorsing a Bold-Faced Lie?
Michael Howard
The New York Times’ Animal Cruelty Fetish
Alice Slater
Time Out for Nukes!
Geoff Dutton
Yes, Virginia, There are Conspiracies—I Think
Daniel Warner
Davos in the Desert: To Attend or Not, That is Not the Question
Priti Gulati Cox – Stan Cox
Mothers of Exiles: For Many, the Child-Separation Ordeal May Never End
Manuel E. Yepe
Pence v. China: Cold War 2.0 May Have Just Begun
Raouf Halaby
Of Pith Helmets and Sartorial Colonialism
Dan Carey
Aspirational Goals  
Wim Laven
Intentional or Incompetence—Voter Suppression Where We Live
Weekend Edition
October 19, 2018
Friday - Sunday
Jason Hirthler
The Pieties of the Liberal Class
Jeffrey St. Clair
A Day in My Life at CounterPunch
Paul Street
“Male Energy,” Authoritarian Whiteness and Creeping Fascism in the Age of Trump
Nick Pemberton
Reflections on Chomsky’s Voting Strategy: Why The Democratic Party Can’t Be Saved
John Davis
The Last History of the United States
Yigal Bronner
The Road to Khan al-Akhmar
Robert Hunziker
The Negan Syndrome
Andrew Levine
Democrats Ahead: Progressives Beware
Rannie Amiri
There is No “Proxy War” in Yemen
David Rosen
America’s Lost Souls: the 21st Century Lumpen-Proletariat?
Joseph Natoli
The Age of Misrepresentations
Ron Jacobs
History Is Not Kind
John Laforge
White House Radiation: Weakened Regulations Would Save Industry Billions
Ramzy Baroud
The UN ‘Sheriff’: Nikki Haley Elevated Israel, Damaged US Standing
Robert Fantina
Trump, Human Rights and the Middle East
Anthony Pahnke – Jim Goodman
NAFTA 2.0 Will Help Corporations More Than Farmers
Jill Richardson
Identity Crisis: Elizabeth Warren’s Claims Cherokee Heritage
FacebookTwitterGoogle+RedditEmail