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Here is the biggest example you'll ever need to see how FINRA leans towards the brokers, not customers. On March 14, 2008, FINRA did a press release that Bearn Stearns met all of the capital requirements. This is the same day that Bear Stearns crashed, that the Federal Government had to rescue it, leading up to the fire sale for one-tenth its stock value before the next trading day. Positively Orwellian.
Statement of the Financial Industry Regulatory Authority Regarding
Bear Stearns' Broker Dealers
Washington, D.C.—The Financial Industry Regulatory Authority (FINRA),
in coordination with the Securities and Exchange Commission (SEC) and
other regulatory authorities, has been monitoring the U.S. broker-dealer
subsidiaries of Bear Stearns & Co. Inc. These broker dealers (Bear,
Stearns & Co Inc., Bear, Stearns Securities Corp., Bear Wagner
Specialists LLC) remain in compliance with the SEC's and FINRA's capital
rules.
