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Why Bother?

posted by Stephen Lubben

The SEC enters into another rounding error settlement with a financial insitution, this time Wells Fargo. Wells agrees to pay the princely sum of $6.5 million -- vs net income of $15 billion last year -- for providing advisory services to non-profits that apparently consisted of looking at the credit ratings on some MBS and telling the clients to buy those.

August 14, 2012 at 12:33 PM in Financial Institutions

Comments

Covers the SEC's costs.

Posted by: Adam Levitin | August 15, 2012 at 08:12 AM

Or put another way, it's like counting coup.
http://en.wikipedia.org/wiki/Counting_coup

Posted by: Adam Levitin | August 15, 2012 at 08:13 AM

While neither admitting or denying ...

Posted by: Stephen Lubben | August 15, 2012 at 08:37 AM

Seeing these cases, I'm reminded of a Doonesbury cartoon many years ago where the homeless lady gives simple investing advice: "Index funds".

Given the repeated finding that nobody can beat the market, institutional investors might be well advised to consider saving the high fees and likely see higher long term returns.

Posted by: Thomas WIcklund | August 15, 2012 at 06:29 PM

The comments to this entry are closed.

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