The Securities Industry and Financial Markets Association (SIFMA) was recently formed by a merger of The Securities Industry Association and The Bond Market Association. On its website the SIFMA claims “We are committed to enhancing the public’s trust and confidence in the markets…” and that in 2007 it will focus on goals including “Ensure the public’s trust in the securities industry and financial markets.”
Yet, within months, SIFMA has already fallen prey to its own financial scandal. The trade group today acknowledged that Micah S. Green resigned after it was learned that he approved improper loans to employees while he headed the Bond Market Association before the merger. Mr. Green made one of the loans to himself (later paid in full).
Mr. Green was widely thought to be in line for leadership of the newly-merged group until it was suddenly announced in late March that he would resign and that his co-chair Marc E. Lackritz would head the organization. Lackritz was though to be planning to resign before the investigation over the loan improprieties was revealed.
The official statement issued by the securities group in the wake of the scandal was: “These allegations proved largely unfounded, but it was determined that certain internal controls and procedures at BMA could have been improved. These procedural deficiencies were among the factors considered when SIFMA moved to a single CEO structure.”
Observers wonder whether it is ossible for any organization to exist on Wall Street without allegations of fraud, theft or nefarious self-serving actions soon surfacing.
At Shepherd Smith and Edwards, our securities attorneys represent investors in claims against the securities industry. We have been successful in helping many investors through mediation, negotiation, arbitration, and litigation. If you wish to discuss your situation in confidence with an experienced securities attorney, contact Shepherd Smith and Edwards today.
Related Web Resources: Securities Industry and FInancial Markets Association Home Site.