Money Matters
Posted by Michelle Moquin on July 30th, 2013
Good morning!
I am now dedicating Tuesday writes to be about Finances. Here’s the first from 4Closure Fraud:
Looking at the way that U.S. Senators Elizabeth Warren and John McCain are pitching their proposal for a 21st-century version of the Glass-Steagall Act, I can’t help but wonder if they’re making a mistake.
Mostly they have promoted their new bill in terms of protecting taxpayers and the broader economy from a too-big-to-fail bank that might need another bailout. A lot of voters don’t get the connection between the problem and the solution being proposed, and it’s debatable if there is one. Here’s a better argument: The reason it’s a good idea to separate securities firms from commercial banks is to protect consumers from brokers selling schlock investments.
If the senators are going to persuade Congress to bring back Glass-Steagall, they should show examples of real, sympathetic people. This brings me to the story of Philip L. Ramatlhware, an immigrant from Botswana who went to a Citigroup Inc. (C) branch in downtown Philadelphia one day five years ago to open a regular bank account.
He was 48 years old at the time and disabled, after being hurt in an accident as a passenger on a Greyhound bus. His English wasn’t good, he had no college education and his last job had been at a fast-food kiosk at the Philadelphia airport. In April 2008, he received $225,000 in a settlement for his injuries, part of which went to pay legal fees. He was holding the settlement check when he walked into the branch.
Arbitration Claim
Immediately he was referred to a broker for a “financial consultation,” according to an arbitration claim he filed against Citigroup. The broker assured him the money would be invested in “guaranteed” funds and that he could have access to them whenever the need arose, the complaint said. Ramatlhware gave him $150,000 to invest. The broker put $5,000 into a bank certificate of deposit, bought a $133,000 variable annuity and invested the rest in a series of mutual funds.
Less than six months later, Ramatlhware had lost $40,000, according to the complaint. Citigroup settled the case in 2010 for $22,500, without admitting liability, according to a report on the case by the Financial Industry Regulatory Authority.
There are countless tales like this of banks cross-selling unsuitable investments to unsophisticated customers. For whatever reason, lots of people trust the advice they get from someone working in the lobby of their local retail bank branch, even if they normally would never set foot in a brokerage firm.
Here’s another example from Finra’s files, involving a Michigan couple, Alberto Ferrero and Qingwen Li, who filed a claim in 2010 against CCO Investment Services, a unit of Royal Bank of Scotland Group Plc. (RBS) They sought $60,000, plus attorneys’ fees and other damages. They were awarded almost $72,000.
Their story began one day in April 2007 when they walked into their local bank, Charter One, also owned by RBS. Here’s how the arbitrator explained the November 2012 ruling in their favor:
“Claimants are recent immigrants to the United States, and they had very limited investment experience,” wrote James Graven, an attorney from Toledo, Ohio, who was the arbitration panel’s chairman. “Claimants went to their bank to roll over their CD. The bank directed them to a registered representative. Claimants’ primary objective was capital preservation.
“The broker recommended a solicited trade placing one third of claimants’ net worth in one speculative fund. The broker made material misrepresentations and omissions concerning risk. Claimants lost approximately 50% of their investment in 18 months. The broker invested claimants’ whole account into one high risk junk municipal bond fund.”
The banking industry has a long history of preying on unsuspecting depositors by selling them garbage securities without regard to suitability. This was a big reason Glass-Steagall was originally enacted during the Great Depression. It has been a recurring problem ever since key portions of the act were repealed during President Bill Clinton’s administration.
Auction Rates
There were $61 billion in settlements between large banks and the Securities and Exchange Commission over sales of auction-rate securities, the market for which crashed in 2008. At Wachovia Corp., for example, the SEC said bank employees helped recruit retail depositors for the investments. (Wachovia was bought by Wells Fargo & Co. (WFC) in 2008.)
Most recently, according to a July 8 article by American Banker, the Office of the Comptroller of the Currency warned JPMorgan Chase & Co. (JPM) early last year that the bank had wrongfully steered clients into in-house investment products. As a result of its findings, the OCC required the company to refund fees to an unknown number of customers. Unfortunately, we don’t know many more details because the examination findings are confidential (which should make this ripe for a congressional inquiry). American Banker said its source was a person with direct knowledge of the findings.
Now back to Senators Warren, a Democrat from Massachusetts, and McCain, the ArizonaRepublican. What they should do is canvass the country for the most gut-wrenching stories they can find about ordinary depositors who have been ripped off by their banks’ broker-dealer arms. Then invite them to testify before Congress and tell the country what happened, in their own words. The Senate Permanent Subcommittee on Investigations, where McCain is the ranking Republican, would be an ideal forum.
The best way to keep the sharks from preying on the customers in the bank lobby is to not let them in there in the first place. If this also helps make systemically dangerous banks smaller, that’s all for the better.
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Thoughts? Blog me.
Lastly, greed over a great story is surfacing from my “loyal”(?) readers. With all this back and forth about who owns what, that appears on my blog, let me reiterate that all material posted on my blog becomes the sole property of my blog. If you want to reserve any proprietary rights don’t post it to my blog. I will prominently display this caveat on my blog from now on to remind those who may have forgotten this notice.
Gratefully your blog host,
michelle
Aka BABE: We all know what this means by now :)
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July 30th, 2013 at 2:39 pm
The ‘here’s a better argument……schlocky investments’ sums it up just fine.
-ZL
July 30th, 2013 at 6:08 pm
Those guys are just crooks who know they can get away with being crooks.
July 30th, 2013 at 7:07 pm
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10:09 AM on 07/29/2013
Lol… Nope I’m brown, no scam here… But if your previous post is any indication of what you believe, then we will always disagree… Facts are facts., my people are not progressing because of their on bad choices.. And responsibilities always fall on the individual, but then again so does success.
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You know what I think of you. I suppose you feel that you are better than the rest of your fellow OTWs, because your role models tell you that you are better than those lazy ones of your kind.
Good little boy that you are. I’m sure you will go far. Just don’t try to marry one of their daughters or attend their church.
July 30th, 2013 at 7:09 pm
Hafa Adai,
We had another blackout in Chalan Pago. I heard from a friend that works on the military base here that they did it to be able to have deniability if aliens need to do it again.
Howie, is this true?
July 30th, 2013 at 7:21 pm
Getting Ready for Your First Cancer Consultation
When you receive a diagnosis of cancer, you may feel as if you’re suddenly on an alien planet, with no map or guidebook to help you find your way to safety. By the time of your initial consultation with an oncologist, you’re likely to be frightened and confused—and that can interfere with your ability to take in essential information about your condition and make crucial decisions about your care.
What helps:
Knowing how to prepare for and what to expect at that important first visit with your cancer doctor.
To help you get the most out of that meeting, we turned to Stewart B. Fleishman, MD, founding director of Cancer Supportive Services at Continuum Cancer Centers of New York and author of Learn to Live Through Cancer:
What You Need to Know and Do. Here are his suggestions.
Before your consultation…
Contact your insurance company to protect yourself financially. Find out whether you need an authorization to see the oncologist.
If so, ask how long that will take—then schedule your consultation accordingly. It’s also a good idea to contact the oncologist’s office before your visit to make sure the authorization arrived.
What if your insurance company says that the authorization won’t come for a long time—even weeks? Ask to speak to a case-management service representative (sometimes called a disease-management or disease-coordination representative) at your insurance company, Dr. Fleishman suggested—often these people can be very helpful in getting you access to the services you need, especially if you stress the urgent nature of your request for authorization.
Or you can pay the oncologist’s bill up-front, then file an appeal for reimbursement with your insurance company or through your state insurance ombudsman, again citing the urgency of the situation.
Arrange for your test results to be sent to the oncologist.
Due to federal privacy laws, your oncologist’s office is not permitted to obtain these test results for you, Dr. Fleishman said. However, the staff at the oncology center will be able to tell you exactly which test results you should have sent in advance and what you should bring with you on the day of your consultation.
For instance, you may be asked to arrange for or bring such items as the original glass slides from your biopsy…copies of your X-rays, CT or PET/CT scans…and results of any blood and urine testing.
Prepare a detailed personal medical history. Include current and prior illnesses…surgeries…allergies…and side effects from medication. Also list any prescription or nonprescription medications or nutritional supplements you currently take along with dosages.
Be open about all conditions (such as a history of depression) and lifestyle factors (such as whether you smoke or have ever had a problem with alcohol or drugs) that may affect your treatment.
Gather info on your family medical history. Prepare a list of all your close relatives—parents, siblings, children, grandparents, cousins, aunts, uncles, nieces and nephews—on both your mother’s and father’s sides.
For each, record their date of birth and current age or age at the time of death…for any relative who had cancer, list the type of cancer, age at diagnosis and outcome. This information can help your oncologist devise the most appropriate treatment plan, given that some cancers have a strong family pattern, Dr. Fleishman said.
Write down all your questions. Between now and the time of your appointment, carry a notepad or use your smartphone to jot down questions and concerns—about your treatment options and their side effects, complementary therapies, prognosis, etc.—as they come to mind. If you wait until the day of your consultation, you’re likely to forget some of the questions you wanted to ask.
Arrange to bring a trusted friend or relative to your consultation. “If you were looking at a new car or considering buying a house, you wouldn’t hesitate to ask a friend to come along as an extra pair of eyes and ears.
Your initial oncology consultation is no less important—so follow the same principle,” Dr. Fleishman said. Patients typically retain less than half the information they hear at an initial consult, so ask your companion to serve as a scribe, taking complete notes on the conversation so you can review the details later.
Also, urge your companion to think of questions for the oncologist—he/she might come up with issues that you had not considered but that turn out to be quite important to you.
During the consultation…
Arrive early—you’ll need to fill out a lot of paperwork unless the oncology office sent this paperwork to you to complete ahead of time or had you submit the forms online in advance. You will then meet with one of the oncologists, review your own and your family’s medical history, and get a full physical exam. After that, you can expect to…
Discuss additional needed testing. Although it may seem redundant, your oncologist probably will want to have your scans and slides reviewed by radiologists and pathologists whom he trusts and is accustomed to working with.
This is not an attempt to wrest more money from you or your insurance company. Instead, Dr. Fleishman said, it is an important step in preventing errors. Your oncologist also may refer you to other cancer specialists for specialized blood work…additional scans (for instance, even if you have had a CT scan, the doctor may ask for an MRI)…and/or more sophisticated analysis of the biopsy. These tests help determine whether the cancer has spread and to where.
Review your doctor’s initial treatment plan. This will vary depending on the type of cancer you have, of course—but be prepared to hear some unexpected options. For instance, many patients are surprised to be told that surgery is not necessarily their first step.
“Until recently, surgery almost always came first. But today, sometimes chemotherapy and radiation are advised right away to shrink the tumor and allow for a smaller surgery,” Dr. Fleishman said.
Discuss whether a clinical trial is an option for you. Many patients assume that if an oncologist brings up the idea of participating in a clinical trial that is testing a new drug or other type of therapy, it must be very bad news.
But this is not the case. “Do not assume that if a clinical trial is mentioned right at the initial consultation it means that your oncologist isn’t sure what to do or that standard therapies can’t help you,” Dr. Fleishman said. In fact, a clinical trial may be a way for you to get access to an effective treatment that is close to FDA approval but that would not be reimbursed by your insurance.
Participation may require that certain steps (such as extra processing of a biopsy or special timing of tests) be undertaken right from the start.
Ask questions. Most doctors will invite you to ask whatever questions you may have, but even if yours doesn’t, don’t be shy or allow yourself to be hurried out the door.
If the doctor says something that you don’t understand, request clarification. If you still don’t understand it, say so and request clarification again. Also, confirm that a copy of the consultation note (a written summary of your visit) will be sent to your primary care doctor and/or the doctor who referred you to the oncologist. You want all your health-care providers to be fully informed about your condition and on the same page with regard to the treatment plan.
After your consultation…
Try to be patient. Ordering additional tests, confirming the presence and extent of the cancer and devising a treatment plan generally will take some weeks.
Unless time is truly of the essence—for instance, because you have already been admitted to the hospital or are having trouble breathing well or passing urine or stool—this waiting period is typical and will not negatively affect your health.
Get a second opinion from another oncologist. “If possible, the second-opinion consultant should not work in the same cancer center as the original oncologist. People who work together tend to think through problems in the same way after a while,” Dr. Fleishman said.
Insurance policies vary, but many do cover that second-opinion consultation, particularly when provided by a doctor within a particular network. Your preparations for and expectations of this second consultation are identical to the first.
Afterward, you should ask that the second-opinion information be sent to the first-opinion oncologist and your primary-care doctor. And don’t worry about offending the first doctor by seeking that second opinion. As Dr. Fleishman said, this practice is not only routine in the world of cancer treatment, it’s a vital step in giving you the very best chance of beating the disease.
Source: Stewart B. Fleishman, MD, founding director, Cancer Supportive Services at Continuum Cancer Centers of New York at Beth Israel Medical Center and St. Luke’s-Roosevelt Hospitals, New York City. He also is the author of Learn to Live Through Cancer: What You Need to Know and Do (Demos).
July 30th, 2013 at 7:27 pm
Hafa adai,
Just want to point out a new scam going on on the island. If you are a Bank of Guam customer read this.
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The Bank of Guam is warning residents of a phishing scam.
In recent days, an email with the subject “Electronic Notification” was sent to Bank of Guam customers and non-customers, a press release stated.
Bank officials said the email has been identified as a phishing scam, which is an attempt to steal personal information such as usernames, passwords and account details.
“If you have received this email, delete it immediately,” the release stated. ” If you have already opened the link provided and are a Bank of Guam customer, please contact the bank right away.”
Bank officials provided the following information:
• Bank of Guam will never ask customers to validate their personal information outside of its secure channels (i.e. in the branch, over the phone, upon secure login to online banking). Be suspicious of email or online sites that request you to do so.
• When using IFITonline, customers must enter through the Bank’s official website homepage: https://www.bankofguam.com. All other links that direct you to an unfamiliar page should be treated as suspicious.
• Once you have logged into Bank of Guam’s online banking, the URL will change to: https://online.ifitebanking.com. Anything other than this should be treated as suspicious and you should not proceed.
For more information, contact Bank of Guam customer service at 472-5284 or customerservice@bankofguam.com.
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CONGRATULATIONS!!!!!!!!!!!!!
You know who you are.
July 30th, 2013 at 9:50 pm
I’m biting the Big Apple. Who wants to hook up？wed eve is free ..
/SB
July 30th, 2013 at 9:52 pm
Cubbyhole was fun tonight
/SB
July 30th, 2013 at 10:06 pm
Hafa Adai:
Martinez served time for first-degree aggravated murder, criminal spouse abuse and use of a deadly weapon in commission of a felony, files state.
On April 6, 1998, medics responded to a call of an injured person at a Yona residence. When they arrived they found Sandbergen dead, with several stab wounds to her chest, according to Pacific Daily News files.
Martinez also was found at the residence, with multiple stab wounds, and was taken to the Guam Memorial Hospital.
Hospital officials later reported that Martinez’s stab wounds were self-inflicted.
Martinez pleaded guilty to murdering his girlfriend, and in December 2001 was sentenced to life in prison, eligible for parole after 15 years.
Last Friday, the paroled this sick fuck. He will kill again.
July 31st, 2013 at 5:51 am
Selena, Not that I care about the math, but it’s easily in the realm of possibility that part of the sentence includes time served, which could have been years before the sentencing date. Courts are notoriously slow in scheduling.
July 31st, 2013 at 5:54 am
What was the parole board thinking? This former US marshal killed his girlfriend, and tried to fake it. What made them think this violent man who had no problems killing a defenseless woman who he had a relationship with would have the self-restraint to hold back from killing a total stranger?
July 31st, 2013 at 5:57 am
The problem is Guam only has 2 people on the parole now, they need a complete board. This is just stupid and shows a lack of concern for the innocent citizens of Guam.
July 31st, 2013 at 6:01 am
Hafa adai, now for some good news about Guam. The Guam Visitors Bureau annual Shop Guam Festival will come back for round two this fall.
According to a press release, the festival will be held from Nov. 29, 2013 to Jan. 5, 2014 and will include 38 days of festivals featuring culinary celebrations, fashion shows, cultural activities, and special offers designed to attract more visitors.
This year, the Guam Visitors Bureau is looking to develop print and mobile shopping guides in eight languages to help promote exploration and tourism during the festival.
“Retail trade is one of the most important tourism attractions and economic stimulators for Guam,” GVB General Manager Karl A. Pangelinan said. “It employs thousands of Guamanians and offers opportunities for a better way of life.
The Shop Guam Festival is a GVB signature event that seeks to position Guam as a world-class shopping destination, offering luxury to value deals, and showcases the unique Håfa Adai spirit and the ingenuity of our people’s cultural crafts.”
The first Shop Guam Festival was held last year and generated about $8.4 million of media exposure and coverage in 120 days, the release said. This year, the event begins on Black Friday, but the development will begin tomorrow with GVB sending members a co-op marketing program guide in a few weeks. For more information, contact 646-5278.
November 26th, 2013 at 3:40 am
John Lawrence Allen has gotten investors more money back than anyone else I know. He’s gotten millions back – http://blog.michellemoquin.com