Salient to Investors:

William D. Cohan writes:

Mary Schapiro, the former chairman of the SEC is joining a firm loaded with former government financial-services regulators. Schapiro previously ran FINRA, Wall Street’s self-appointed watchdog.

Alan Blinder at Princeton is a co-founder of Promontory Interfinancial Network which offers Insured Cash Sweep, which splits large deposits into $250,000 pieces that each qualify for FDIC insurance.

Nassim Nicholas Taleb said Promontory’s Insured Cash Sweep allows the super-rich to legally scam taxpayers by getting free government sponsored insurance. Taleb says Schapiro is morally repulsive because there is an “implicit deal” whereby regulators such as Schapiro and Blinder make regulations complex and then sell their services at a higher price when they go to the private sector – no regulator will ever make a regulation that’s clean anymore.

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