Why no banker went to jail for crash of 2007

Why has no banker gone to jail for the 2007-8 financial crash?

It appears from one retired SEC employee that the staff feared prosecuting Goldman, Paulson and others. One former employer believes that the big banks had “captured” his agency—that is, that the S.E.C., which is charged with keeping financial institutions in line, had become overly cautious to the point of cowardice.

According to one writer, in late 2006, when the hedge fund Paulson & Company asked Goldman Sachs to create an investment that would pay off if U.S. housing prices fell. Paulson was hoping to place a bet on what we now know as “the big short”: the notion that the real-estate market was inflated by an epic bubble and would soon collapse. Goldman created a vehicle of mortgage bonds which it sold to a German bank. Paulson spiked the vehicle with bad bonds so Paulson could not lose. Wall Street likes sure bets and this was a big one using deception and hubris.

We can’t beat Wall Street traders because we aren’t inside: http://www.amazon.com/Nothing-Way-Seems-Wall-Street/dp/1492752916

IRS to be eliminated in 3 years

GOP is pushing bill to end IRS after cutting $1 billion in last 5 years. Audits limited by 17,000 layoffs. Teas want revenge after reports their orgs were targeted for review. GOP has no alternative to collect taxes but Dems have bill to automate tax reconciliation so we receive refund automatically. NO paperwork needed.

Open your Tax-FREE account today: http://www.amazon.com/Tax-FREE-Wealth-How-laws-free/dp/1475089236

FEES are FALLING for millennials

Fees fell to 61 cents from 73 on every $100 of invested assets. The decline doesn’t mean that investment firms are cutting fees for actively managed funds. Rather, it reflects a shift to passive funds, both mutual funds and ETFs, with lower expense ratios, many of them run by Vanguard, the world’s largest mutual fund company and a pioneer of low-cost investing. Vanguard is owned by its shareholders so your costs for passive and active investments are that of the owner. If you pay 2% a year total, over your lifetime, you give up 63% of your earnings to the owner of your funds. Earn 10% not 3.69%.

It is your money to give away or keep: http://www.amazon.com/Vanguards-Top-Ten-mutual-funds/dp/150073909X

GOP Religionists to remove OK doctors from women’s health clinics

OK will terminate doctors who do abortions in their clinic practices.  “Oklahoma politicians have made it their mission year after year to restrict women’s access vital health care services, yet this total ban on abortion is a new low,” Amanda Allen, senior state legislative counsel. Doctors are already in short supply in OK and this will make it worse. “If we take care of the morality, God will take care of the economy,” the bill sponsor said. OK to turn back time to the 1950s moral climate.

TN has made it legal to let mental health counselors to refuse to treat patients based on the therapist’s religious or personal beliefs. So pledge to ‘heal the sick’ has caveats.

Religionists think that if they ban doctors, they ban abortions, they ban sex education, they ban contraceptive devices, they can ban sex for unreligious purposes. 

Does our President need to be smart and truthful? Do they even care about truth?

            (a summary of the GOP Presidential debates) (history: GOP has the final candidate by Feb 17)

Don: I can play any part needed in this live TV “reality” show called “Election 2016”

            I will testify that my U diploma is great and a bargain in RE deals

            I tricked FAA so I could keep my “ride” and not have to fly with my voters!

            My new advisor, Manafort, is real dealmaker too—Rap sheet is extensive!

Ted: I am hoping Carly can fix my campaign better than she fixed HP. Forget fake video!

            Boehner didn’t really call me “Lucifer in the flesh” and “miserable son of a bitch.”

Paul Ryan: No budget deals and Teas want more cuts of benefits so I punt.

John: I can eat whatever I want. I campaign wherever I want. Deal? I am the way.

Hill: Tea party founder Koch Industry can support Clinton over GOP picks

50 people pay for HALF the election money spent—we don’t know if they are Americans

Regulators are the only protection we have since we can’t sue anymore

            “It is nearly impossible for one individual to take on a corporation with vast resources.” (GOP bill requires impossible: every person in class action suffer “same type and scope of injury”)

               Supremes stop us from suing—State courts no longer available to sue corporations!

CIA contract psychologists, Mitchell Assoc. sued by their victims for torture effects.
.Guns kill people: PA dispute in church ends with gun—killing ends ‘talking it out’!

.Pressler & Pressler, New Century Financial caught churning out deceptive debt lawsuits.

.London-based Fiat Chrysler recalls million vehicles because they can roll abruptly.

.Measles back in TN and containment challenge. Not immunized—religionists?

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

Supremes feel politicians helping donors with favors is OK

VA Gov conviction for corruption was not fair, they think. All politicians do what McDonnell did—provide favors for benefactors. That is what gov is all about. “For better or for worse, it puts at risk behavior that is common,” said Justice Breyer, who along with Justice Roberts suggested that the federal corruption laws are so vague that they might be unconstitutional. There’s a Gov in AL, one in LA and one in IL who want out too. Most Gov are more subtle and indirect like NJ Christie. He gave state pension money to his supporters so they could take $ millions in fees for ‘managing’ a lack of growth over time. For instance, Treasury records show that, three years ago, the hedge fund Third Point LLC received a $100 million pension investment from Grady’s state investment council. The investment came a few months after Third Point's founder and CEO Dan Loeb gave $400,000 to the Republican Governors Association. Campaign finance records show employees and political actions groups affiliated with firms managing New Jersey pension money have given more than $7.1 million to the RGA, headed by Christie. His hedge fund friends have lost significant earnings over the past 5 years.

Supremes could respect jury system that sent Govs to jail

How our government wastes our money

We spent $81 million to devise torture that CIA used to get secrets—it FAILED

SCAMS

Finally, our Cyber Command to launch attacks against ISIS for the first time. But to use       the intel is to limit the source’s future, as in the WWII Enigma story.

VW buyback plans but what about Audi, VW, Porsche, ‘clean’ diesels that cheated too?

            Mercedes, Nissan, etc next?

Who owns your account now?

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

Alerts 

Raise your net pay

You can raise your net pay

Yes, it is possible to counteract the hike in payroll taxes. If you normally receive a tax refund each year, you have been paying for a $3.2 billion refund to GE in 2010. You can pay only what you owe each paycheck by raising your exemptions by one or two points. Use form W4: http://www.irs.gov/pub/irs-pdf/fw4.pdf. You can recalculate your exemptions with p501:

http://www.irs.gov/pub/irs-pdf/p501.pdf

Are you using these tax breaks? Use them before the GOP takes them away

There are 35,000 wealthy families who did NOT pay any income taxes. Isn't it your turn?

Employer contributions toward workers' medical insurance premiums and medical care are not taxed: $181 billion.

Retirement plan contributions and earnings are not taxed: $165 billion.

Mortgage interest deduction: $101 billion.

Lower tax rates on long-term capital gains and qualified dividends: $84 billion.

Deduction for state and local taxes: $69 billion.

Deduction for charitable contributions: $46 billion.

Social Security and veterans' benefits are not taxed for lower-income filers: $45 billion.

Interest on tax-exempt state and local government bonds is not taxed: $26 billion.

When someone dies, the capital gains on their investments are not taxed: $24 billion.

Income from some life insurance products is not taxed: $23 billion.

The largest of all tax breaks: owning a business. For instance, GE paid no income taxes in 2010 and actually got a tax benefit of $3.2 BILLION. 

Put the code to use for yourself: http://www.amazon.com/Only-little-people-pay-taxes/dp/1478222441/

Can you qualify for any of these tax credits?

Most of what we had in 2011 remains. Only high incomes had a change and most pay the AMT anyway. eFile starting January 30 using IRS approved sites. Take your credits:

http://www.marketwatch.com/story/cracking-the-2013-tax-code-2013-01-03

Did you get a break on your insurance premiums?

Thirty-seven percent of Americans spent more on insurance over the past year while only 7% spent less, according to Bankrate.com. The only way to reduce your costs is to shop around. Members obtain 3 quotes on policies every 2-3 years because insurers don’t voluntarily cut your rates—We have to ask:http://www.amazon.com/Drop-Your-Insurance-Only-What/dp/1448623391/

Do you work from your home? Deduct $1,500 with no form!

The Internal Revenue Service decided that people who work from home or run a small business from home and have a “qualifying home office” can deduct up to $1,500 a year. That's based on an allowance of $5 per square foot of home office space on up to 300 square feet. This option — easier than filling out the current 43-line Form 8829 that requires burdensome estimates of allocated expenses, depreciation and carryovers of deductions not taken in previous years — will be available beginning in the 2013 tax year. About 3.4 million taxpayers claimed the home office deduction in 2010.

Regulators warn investors chasing yield and using leverage

FINRA has sent a letter to brokers warning them that customers can be hurt by these activities in the markets. A study of what happens to winning stocks after they climb shows that the winners lose money and the losers become winners. Buying winners is a loser’s game. Use a better way: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

Safe public-employment jobs now at risk

Sixty-one key cities across America have emerged from the Great Recession with a gap of more than $217 billion between what they had promised their workers in pensions and retiree health care and what they had saved to pay that bill. Don’t rely on the government completely. Make your own tax-FREE Pension in a Box: http://www.amazon.com/Your-Pension-Box-tax-FREE-employer/dp/1481945157/

Flood insurance rates will rise on coast—no more free rides for water properties!

Many Coast residents will be paying higher flood insurance premiums soon. The increases, the result of the Biggert-Waters Flood Insurance Reform Act of 2012, will be based on individual circumstances, By August, subsidized flood insurance policies around the nation will be eliminated and rates based on risk will be implemented. FEMA plans to phase out grandfathering of insurance policies beginning in January 2014.

A policy's rates will then be based on a property's elevation and risk factors according to the flood zone maps for their areas.

Oceans are rising. In 2012, there were at least 3,527 monthly weather records for heat, rain and snow broken by extreme weather events that hit communities throughout the U.S.

Is your insurer trying to buy back your annuity?

The National Underwriter reports cash buyouts offered by variable annuity insurers for guaranteed living benefit or guaranteed death benefit riders may not be a good deal for us, the annuitant. The value for many annuitants exceeds the cash amount offered by the company. That makes sense since the insurers would not be willing to offer the buyouts if they were not in the company's best interest. 

Just say no!

Wealthy do not let advisors tell them what to do

For the wealthiest investors, the more assets they have the less likely they are to cede control over investment decisions to advisors says a new report. Our members act like the wealthiest so they become wealth by NOT giving up 40% of their earnings to advisor fees: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

How much do you pay for mutual funds?

"In every single time period and data point tested, low-cost funds beat high-cost funds." Morningstar study. 

SCAMS           “Deficits don’t matter” GOP leader Dick Cheney 2002 

Banking excesses begin again with CDO derivatives and new bubble

Currently, the banks now tap into soaring demand for commercial real estate debt by selling collateralized debt obligations, securities not seen since the last boom. Sales of CDOs linked to everything from hotels to offices and shopping malls are poised to climb to as much as $10 billion this year, about 10 times the level of 2012, according to Royal Bank of Scotland Group Plc.

The rebirth of commercial property CDOs comes as investors wager on a real estate recovery and as the Federal Reserve pushes down borrowing costs, encouraging bond buyers to seek higher-yielding debt. The securities package loans such as those for buildings with high vacancy rates that are considered riskier than those found in traditional commercial-mortgage backed securities, where surging investor demand has driven spreads to the narrowest in more than five years.

“Investors are willing to go further afield in their quest for yield,” Ed Shugrue comments. “With demand rich,Wall Street is scouring the cupboards to find anything with a cash flow that can be securitized.”

MetLife caught overcharging MA drivers

MetLife will pay at least $50,000 in penalties and refund an undetermined amount of money to customers to settle allegations it imposed costly surcharges on Massachusetts drivers who were found not at fault in auto accidents.

Insurers caught overcharging MA motorcyclists

More than $2.8 million in insurance refunds have gone back to Massachusetts motorcycle owners, Attorney General Martha Coakley announced today. Since 2010, 17 insurance companies have settled with the AG's Office resulting in more than $42.8 million in refunds to Massachusetts motorcycle owners.

We are paying for bank mortgage settlement too—rewarding bad behavior!

Banks will take a tax deduction for their bad behavior in causing the recession of 2007-12. We will pay more tax to make up for their deductions for crashing the system and no one stops it.  http://www.nytimes.com/2013/01/13/business/paying-the-price-in-settlements-but-often-deducting-it.html?_r=1&

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

GOP will not implement Supreme's decision

GOP-controlled states will not implement ObamaCare despite decision—Seniors at risk

At least 20 states have passed binding legislation opposing broad elements of health care reform --states including Pennsylvania -- likely will not expand Medicaid since the U.S. Supreme Court removed the threat of federal penalties, analysts said.

That decision would be critical because of Pennsylvania's growing senior population and the high costs of skilled care for older people, said Linda Rhodes, a former secretary of the state Department of Aging.

"Medicaid has become a safety net for the middle class," Rhodes said.

Pennsylvania hasn't spent any of its $33 million federal grant to develop the marketplaces, department spokeswoman Roseanne Placey said.

ObamaCare is the law but states ignore Supreme’s law of the land.

http://media.lifehealthpro.com/lifehealthpro/article/2012/06/28/NFIB-Sebelius-11-393c3a2-highlighted.pdf

Romney says Supremes motivated by politics—OH REALLY!

Mitt Romney suggested "political consideration" rather than legal judgment may have played a major role in why Supreme Court Chief Justice John Roberts voted to uphold President Barack Obama's health care law last week. "It gives the impression that the decision was made not based upon constitutional foundation but instead political consideration about the relationship between branches of government," Romney told CBS News. "But we won't really know the answers to those things until the justice himself speaks out—maybe sometime in history."

What about the Bush II “election” overturning FL voter count?

And voting to allow corporations to influence elections?

Mitt is right and we all agree the Supremes are political decision-makers like Congress.

House GOP to cut food stamps for 46 million Americans—sugar and cotton subsidies up

Conservatives in the Republican-led House are certain to demand greater cuts in the food stamps program, which makes up about 80 percent of the nearly $100 billion a year in spending under the farm bill. Senate Democrats are equally certain to resist more cuts in a program that now helps feed 46 million people, 1 out of every 7 Americans.

Older clients get taken by advisors—Again

New study shows younger clients get better discounts even though they are more likely to cancel their accounts. Even though older clients have larger transactions, advisors are assuming that the old brokerage model will lead to greater business in the future. However, younger clients know they can do all their investing online by themselves now. Eventually they will figure out that they don’t need the advisor. They can invest for FREE. Wealth Without Wall Street explains the new model: http://www.amazon.com/Wealth-Without-Wall-Street-Commissions/dp/1442168137

States’ pensions not disclosing fees and special deals

The Governmental Accounting Standards Board has developed revised standards in accounting rules that will soon force cities, states and other local-government entities to disclose pension obligations that previously were hidden. Existing rules have been criticized for hiding the real cost of public pensions.

One member asked the State of NJ about fees on her pension and Treasurer refused to give answer. CA tried to reduce fees but private-equity fund managers often charge up to 2 percent of assets and 20 percent of profits. If the state earns 8% and gives away 2% plus profit (managers have 2% profit already) then you earn 5.6%. Vanguard charges only 0.05% for pensions.

What a special deal for Wall Street!

IRS goes after savers after losing $ millions to Swiss court

IRS is coming after you for IRA infractions that are technical but not very lucrative. The agency lost its bid to bring home revenue from American tax-dodgers hidden in tax haven Switzerland, so it needs to justify itself to Congress. The really big revenue loss is to corporations like Exxon and most of the Fortune 500 that keep profits overseas in foreign subsidiaries.

Check your IRA documents. IRS makes mistakes too, so check your backup: http://online.wsj.com/article/SB10001424052702304441404577480690440266320.html

Why your banker/broker/advisor/agent CAN’T give you the right products

It is impossible for your seller to give you the right products. They can’t sell them. The employer picks the products based upon revenue targets. Senior management wants to be rich not right about your long-term wealth. Example: Morgan Chase employees tell about selling their own bad funds. The bank actually changed the returns in marketing materials, according to JPMorgan documents reviewed by The New York Times. In 2011 they actually got caught and paid a fine and are still at it. Use our unbiased advisors: http://www.amazon.com/Unbiased-Advisors-Network-helps-tax-FREE/dp/1470106841

Insider reveals hedge funds returns a mirage—worse than owning Treasuries

His research shows returns have dipped substantially since the 1990s; compensation eating into payouts. Simon Lack, a former hedge fund executive at JPMorgan Chase & Co. and author of the just-published “Hedge Fund Mirage”  finds that investors would have done twice as well with boring Treasuries over the past decade than being in the high-status, hard-to-research investments they find so captivating.

You may be sued when your parents go to a nursing home

States are out of money so Medicaid state funds are not paying the bills for indigent parents. A judge can force you to pay if they think you can pay. Twenty-nine states have "filial support" laws that could be used to go after patients' adult children for unpaid long-term-care bills. http://online.wsj.com/article/SB10001424052702303506404577446410116857508.html

In at least one of those states, Pennsylvania, nursing homes have started routinely using the law to prod families into paying their elders' bills or completing Medicaid paperwork on their behalf.

Plan in advance with our Guide: http://www.amazon.com/Long-term-Care-Insurance-better-alternatives/dp/147006877X

Drug company pays $3 Billion for $29 Billion to sell unlawfully—no one goes to jail

GSK allegations: "Some people are concerned that marketing by pharmaceutical companies may exert undue influence on doctors, that sales representatives may not always give doctors full information about the products they are promoting, or that there may be promotion of medicines for unapproved uses."

Dr got vacations for writing scripts not permitted by law

Execs were paid $ millions for sales not permitted

Children got drugs not permitted

Americans pay 2-3 times the price Canadians pay for same drugs

And everyone lived happily ever after?

SCAMS           “Only the little people pay taxes.” Leona Helmsley

States are losing $ millions of revenue to tax haven in Delaware.

PA has lost $400 million a year because companies have TAX loophole. GOP claims US corporations have highest tax rate: http://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html?pagewanted=all

Taxpayers are NOT protected by DoddFrank so Morgan Chase’s $20 B losses are just the beginning. Banks can make bad investments with our money still.

http://finance.fortune.cnn.com/2012/06/13/financial-crisis-myths/

Bankers use email codes to fix interest rates for whole economies!

"As always, any help wd be greatly appreciated," the trader wrote.

"I am going 90 altho 91 is what I should be posting," came the reply.

This is how they “earn” the big bonuses--$200,000+

http://news.yahoo.com/casual-e-mails-tell-chilling-story-market-fixes-165537584--finance.html

Bankers avoid jail even when insider whistleblower wins lawsuit

Countrywide fired one exec for refusing to make up a legal document. CEO Mozilo took $ millions after Countrywide bankruptcy. No one went to jail. Whistleblower waiting.

http://www.nytimes.com/2012/07/01/business/countrywide-ex-executive-still-awaiting-3-8-million-award.html?pagewanted=all

IAN

41 Watchung Plaza, B242

Montclair, NJ 07042

973.746.2014

www.InsuranceAdvisorsNetwork.com

12 things your agent/broker/banker/money-manager won’t tell you.

1. “We have FEES and COSTS for everything. Most are not necessary.” For instance, your life insurance policy is probably one with a higher premium than necessary. Compare the cost of $200,000 benefit for a 50 year old in good health--$356 versus $481 per year. Also, it does not cost $50 to buy 200 shares of IBM. You can buy them for $0. And why should your broker charge you $160 when your account is inactive? Why are you paying 50 cents to deposit a check? Banks should pay you to deposit checks. Is your 401k money manager really worth 1.54% of your assets each year? And looses money too? Your employer should buy a retirement plan that costs you $0.30% or less with no kickbacks.

2. “We offer products that are best for our firm, not for you. We don’t show you all the fees and commissions and financial kickbacks and perks we earn when we sell you our products. Our products are the “best” available because we sell them. We are the best in the industry because our marketing image says we are.” One pension plan provider charges 2.75% a year for their tax-deferred annuity. It has over 9 years of surrender charges so you can’t transfer your money if you change employers. It charges another $30 a year for ‘recordkeeping.’ Its mutual funds are among the poorest performers. One brokerage firm steered customers into their own funds because they have a higher broker payout. Your agent doesn’t sell SBLI, your broker doesn’t sell Vanguard, your banker does offer really free checking, and your money manager doesn’t price your funds at cost—0.1% or less.

3. “We will discuss your financial needs with half truths.” You are told you need $1,000,000 of life insurance but the policy type that your agent picks is the most expensive in the world. Even if you agree you need $1 million, you pay more for permanent, 30 year guarantee term or “return of premium” term than just term. You want a guaranteed income for the rest of your life but your broker doesn’t mention that the annuity payments loose half their value in 24 years. You want to save for college but your banker doesn’t mention that 529 plans are NOT taxed like the custodial account just opened for your child. You want to save for retirement but your broker put you in ‘hot’ funds.

4. “We don’t tell you about other alternatives. We don’t get paid to tell you there are less expensive alternative ways to solve your problems.” You can buy a FREE checking account from your credit union. The CDs pay more, the checking costs less and the loans are cheaper. You don’t need an ATM on every corner. You can defer taxation on your account earnings by buying and holding stocks or tax-managed funds. You can save on liability insurance by buying only what you need. Wealthy people buy “assets that grow by themselves” so they can self-insure and self-fund their needs. Consumer Reports reviewed 47 policies and concluded that “for most people, long-term-care insurance is too risky and too expensive.”

5. “We don’t explain how you can reach your goals in the least costly way.” Banks offer life insurance to cover your loan because you want to get the loan. They don’t explain that your existing term policy will cover the loan. Also, you can build a much larger retirement nest egg by investing in stock mutual funds costing .07% vs. 1.3%. Compounding magnifies the difference—20% more money over time. When new employees sign up for the retirement plan they are encouraged to pick the ‘safest’ option—treasury bonds. Stocks are more likely to grow in value over the long term.

6. “Our products must be ‘sold not bought. We use half-truths in order to contrive an ‘urgent financial need’ that you can solve only by buying our products.” One firm charged a 91-year-old “client” more than $35,000 for four trades over two years, at approximately $8,800 per trade. The largest annuity seller is accused of misleading policyholders regarding bonus payments promised on annuity products. Life insurance is not the foundation of every financial plan—you are more likely to run out of money than die in the 21st Century.
7. “We believe the hype of our industry: We give good financial advice that you can’t get anywhere else.” There are no classes in our high schools called Financial Health Class. You can’t easily find out the “tricks of the trade” used to sell you the products created to pay high fees to sellers. Young single people don’t need life insurance. They need to invest 10% of their income at an early age to become wealthy. Also if brokerage firms actually followed their own stock selection advice, they would have negative returns. The average return for the top 10 brokerage firms was minus 2.26% from 1997-2001! Most were negative (Investars). 88% of managed mutual funds earn less than the market.

8. “We are experts at figuring out what your “hot buttons” are and using them to get you to buy our products. We exploit the fact that everyone wants to buy the next Google stock or become a millionaire overnight buying and selling real estate or gold. We exploit the fact that seniors fear losing money and want to earn 10% on their money with a completely guaranteed investment.” Finding the next Google is like finding a dime in a football field on the first try. The average equity investor earned a paltry 2.57% annually; compared to inflation of 3.14% and the 12.22% the S & P 500 index earned annually, 1984-2002. You pay for guarantees by earning less and not keeping up with inflation. So even though you don’t lose money, inflation reduces money’s buying power. Putting your money into different investments reduces your chances of losing money and increases your chance of beating inflation.

9. “We don’t sell products from companies that don’t pay a commission—so you never obtain the least-cost product. We only sell products with commissions and fees and kickback incentives and “soft dollar” reimbursements.” When was the last time your broker offered the funds with the highest returns over a 20-year period? Vanguard Primecap--13.6% over 20 years--#1 in large company growth stock funds. Vanguard Health--17.4% over 20 years--#1 in Sector funds. Vanguard Energy--16.4% over 20 years--#2 in Sector funds. Did your agent call to tell you that life insurance rates are dropping so you should apply?

10. “We charge you fees whether we give good service, good rates, good returns, or good benefits.” One money manager charges 1.5% for the same exact fund that charges .07%. With $250,000 invested, you will give up about $700,000 (2,723,138 vs. 2,022,979 over 20 years of compounding at market rates). Only 12% of managers can beat their benchmarks over long periods of time. You don’t get a refund if your manager can’t beat the index. You can’t get a refund if your CD or annuity renews at a lower rate. You can’t get a refund if we mess up your trustee to trustee transfer. We don’t give you a “better” death benefit check for $200,000 when your loved one dies. Many banks hit customers for fees they didn’t know about.

11. “When things go wrong, we treat you like you’re the enemy.” All brokerage firms disallow you to sue for bad service—you must use their arbiter and settle for the decision. One firm has the worst call response service in the industry. Another company pressured outside engineers to prepare reports concluding that damage was caused by water rather than by wind. They just denied all of them in the same geographic area. Another insurer dropped coverage and stopped signing new policies in coastal areas of 9 states. Some long term care insurers aren’t paying claims.

12. “We don’t care if you have been a loyal customer. We buy and sell customer accounts anytime we can make more money from it.” In the last few years, hundreds of customers have had their accounts dumped on others. For instance, John Hancock’s president sold the company to Manulife [Canada], Fireman’s Fund was sold to Allianz [Germany], Household Finance went to HSBC [Hong Kong], and Sage Life went to Old Mutual [S. Africa]. Brown & Co and HarrisDirect went to E*Trade. Golden West Financial went to Wachovia. MBNA and Fleet Bank went to Bank of America. A complete list is available at http://www.theinsidersguides.com/whoowyoacno.html. More consolidation is expected: HSBC, Rydex, Gateway Investment, GAMCO Investors, Julius Baer Investment, UBS AG. Your accounts could be next. You can do it yourself and save.

"Investors should purchase stocks [financial services] like they purchase groceries—not like they purchase perfume…” Benjamin Graham