IT'S TIME FOR HUGE CHANGES

I've written before that Wall Street is a HUGE moral hazard and that Hannity's Invisible Hand coule end up destroying America. Now, we have a little more evidence.

E-Mail That Investors Might Like to Read
By GRETCHEN MORGENSON
Published: June 29, 2008
NY Times

EVERY few years, the conflicts of interest so deeply embedded in the Wall Street business model emerge from the shadows for all to see. Coming to light last week, courtesy of Massachusetts regulators, was UBS’s dual roles in the auction-rate securities market, which have had devastating effects on the people and institutions that invested in them.

After receiving a flood of complaints from investors in his state, William F. Galvin, secretary of the Commonwealth of Massachusetts, subpoenaed documents from some major market participants. Thursday, he released materials produced by UBS and filed a civil suit against the firm, accusing it of defrauding investors.

MR. GALVIN’S complaint says UBS misled investors by peddling auction-rate securities as cash equivalents and ultrasafe. But the suit also asserts that UBS dumped these securities on individual investors to minimize its own exposure to the risks inherent in keeping them on its own books.

...the e-mail messages attached to the Massachusetts complaint support Mr. Galvin’s accusations in stunning black and white.

UBS is also part of the same Invisible Hand that helped capitalist pigs hide billions in income from the IRS.