IOSCO

As I read and study for the CFA exam, the underlying fundamentals and movements of the market seem to make sense, but also the massive fraud perpetuated by individuals.

The IOSCO, International Organization of Securities Commissions, has three goals:

1) protecting investors
2) ensuring that markets are fair, efficient, and transparent; and
3) reducing systematic risk

It has 181 members that regulate more than 90% of the world's financial capital markets. The IOSCO has succeeded, humbly in my opinion, on all three counts. And I'm sure if you talk to the heads of this institution they believe this canard.

WHEN MONEY IS INVOLVED THE ONLY THING THAT WILL PREVENT FRAUD IS REPEAT BUSINESS, REPUTATION, AND BEING THROWN IN JAIL.
Lehman lost business but held face, they lost their reputation at the end and were shocked, and now they (Dick Fuld) is talking to congress like he is immune from jail. Now if this was in Saudi Arabia someone would be losing body parts. Maybe that will prevent malfeasance, but no, we have the death penalty, but does it prevent murder?

So my conclusion is what it says at the end of Eccliasastes, "Fear God."

And maybe that is what we should change the inscription on the dollar bill to. From Trust in God, to Fear God.

Our trust has been shattered but not our fear. Fear is a good thing sometimes, like when it keeps men honest.