Beat It, Bernie Madoff

"I'm Starting With The Man In The Mirror.
I'm Asking Him To Change His Ways
And No Message Could HaveBeen Any Clearer
If You Wanna Make The World A Better Place
(If You Wanna Make The World A Better Place)
Take A Look At Yourself, And Then Make A Change
(Take A Look At Yourself, And Then Make A Change)
(Na Na Na, Na Na Na, Na Na,Na Nah)"

There you go, the chorus from one of Michael's soul-searching songs. (I did the moonwalk in honor of our beloved--demented--King of Pop...did you? Did you join any Michael Jackson Flashmobs?) This song, Man in the Mirror, did Bernie ever listen to it? Did he, himself, look in the mirror while in the midst of defrauding thousands out of their billions? If he did, his own eyes believed his lies.

Michael's gone and doesn't know the world really did love him; Bernie's gone and finally knows how much the world despises him. Will both men meet soon on one of Dante's circles? I have to believe Bernie will be closer to the chewy center.

Bye for good, Bernie. "They're Out To Get You, Better Leave While You Can.... So Beat It. Just Beat It."

The Rumor Was True!

That is, the one about FINRA revising its proposed rule on circulation of rumors. This is good! The new language is more focused and will allow industry professionals to discuss amongst themselves and with clients the nature of circulating rumors (without triggering a regulatory reporting obligation). That is, firms can talk about rumors: they just can't spread them with the intention of moving markets... that makes sense, right? If those folks on TV are all blabbing about a rumor, why shouldn't a broker be allowed to speak to the subject with his/her client? to help things, rather than hurt them?

Specifically, the amendments:

• Narrow the prohibition to apply to rumors that are 'likely to influence' the market price of a security;
• Retain the reporting obligation, but narrow it to report only those instances of origination/circulation when the offender did it 'for the purpose of improperly influencing' the market price of the security;
• Include supplementary material: defining 'rumor,' allowing certain exceptions (permissible communications), reminding firms that such rumor origination/circulation could violate lots of other rules, not just this new one, and requiring firms to have WSP's and training programs (the usual).

The revised rule is out for comment through July 16. Go to http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p118807.pdf to read the notice on this topic.

Pssst: It's okay if you pass this on--not a violation, I promise.