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Mass. Goes After Wall Street; Says It Targets Seniors

Wednesday, July 10, 2013 - 6:09 PM
Massachusetts' top securities regulator has hit top Wall Street firms with a blanket of subpoenas, saying he fears elderly people are being targeted for high-risk, alternative investment products.

Mass. goes after Wall Street; says it targets seniors  - NBC News.com
11
ShorebreakShorebreak2,620 posts since
Apr 6, 2010
Rep Points: 14,202
1. Thursday, July 11, 2013 - 2:46 PM
What makes these people think that "seniors" are so fragile financially?  They need to be more concerned about all the younger people who are so desperate to find decent savings rates that "they" might get into the risky investment.  Most "seniors" know better from spending a lot of time of DA!  I didn't have DA around or a computer years ago when I started out and I did fine just researching on my own.  It is just so much easier now with the computer and DA for help. 
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
2. Friday, July 12, 2013 - 7:31 AM
Oh really paoli2?

Seniors, who have CD accounts maturing at banks, are routinely talked into putting their funds into alternative investments on a daily basis.  The facts that these products are not FDIC insured and that their principal may fluctuate are barely mentioned as the words "higher yield" are repeatedly echoed to the bank customer.  Despite regulations that supposedly put limits on the high pressure sale of non-FDIC insured products to those seniors, who are unaware of the inherent risks in such products, it still occurs on a regular basis.  Your "Most "seniors" know better from spending a lot of time of DA!" apparently doesn't jive with the statistics that Massachusetts' top securities regulator has in his hands.
8
ShorebreakShorebreak2,620 posts since
Apr 6, 2010
Rep Points: 14,202
3. Friday, July 12, 2013 - 7:47 AM
Oh really Shorebreak?

I have been "targeted" for years but that doesn't mean they can "hit" their target.  There is so much information out there about "risky" investments that a senior would have to be partially demented not to know what is going on.  Maybe I have more respect for the elderly but I think maybe (for once) you may have misunderstood the article.  I would love to know the age of the average person in those risky stocks, funds, and annuities.  I am more concerned about the young desperately getting into them than I am the "wiser" seniors.  Maybe that Massachusetts top securities regulator never checked pass his own state. 
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
4. Friday, July 12, 2013 - 8:19 AM
OK, you are right paoli2. It's all an illusion and it never occurs. The State of Massachusetts top securities regulator is just wasting taxpayers money because all seniors are quite knowledgeable about different investment vehicles. I'm relieved to know that and won't have to worry when I walk into a too big to fail bank and see an elderly couple being given the hard sell by the bank's investment representative at the desk in the corner of the bank. Have a great day because everything is fine in Bankerland today.
8
ShorebreakShorebreak2,620 posts since
Apr 6, 2010
Rep Points: 14,202
5. Friday, July 12, 2013 - 9:22 AM
Quit acting your age Shorebreak.  You make me concerned about when "I" become a senior too.  I never posted they don't get put upon by those financial people, I am just making a point that not ALL seniors are so docile or fragile that they can't know what is best for them financially. I never said "ALL" but that article insinuates it and that is what I resent about such articles.  You have a great day especially if you still think "everything is fine in Bankerland today". 
1
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
6. Friday, July 12, 2013 - 10:12 AM
Re:  Paoli 3. Friday, July 12, 2013 - 7:47 AM

"There is so much information out there about "risky" investments that a senior would have to be partially demented not to know what is going on."

You couldn't have taken the time to phrase this less offensively? 
5
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
7. Friday, July 12, 2013 - 10:33 AM
Re:  Pearlbrown: " You couldn't have taken the time to phrase this less offensively?"

       No.  I seem to have more respect for the intelligence of seniors than you and SB do.  You don't have to agree with me but I do have a right to my opinion.  I also don't consider my response as offensive to seniors.  I was actually complimenting them.   Why haven't you found SB's remark offensive since he seems to agree with the Mass. article?
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
8. Friday, July 12, 2013 - 11:25 AM
Indeed you have a right to your opinion, but your comment about "partially demented" shows little respect for individuals who do have cognitive impairments as they age.  How fortunate for you that you apparently have never seen first-hand how this condition ravages those who have it, or else you surely would have been more careful with your words.

Not every senior has the advantage of being able to spend time on DA learning about what's possible - some may not even have access to a computer or similar resource.    How fortunate for you that you seem to have both. 

Shorebreak's remark is not offensive to me because he is absolutely right that many people (and not just seniors) are not well informed about financial matters.  I too have seen the bankers pitching to an elderly couple, and the presenters at the free steak dinners giving the hard sell to bewildered customers who are hungrier for better rates so they can make ends meet than for the meal. 
7
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
9. Friday, July 12, 2013 - 11:37 AM
Pearl:   " How fortunate for you that you apparently have never seen first-hand how this condition ravages those who have it, or else you surely would have been more careful with your words."

No, I have not been fortunate enough to have "not" seen how dementia can ravage a human.  I had to actually be the caretaker for one who suffered it before death for many years!   I also know when a senior hits this stage they are usually not able to handle their own finances.  That is why I said "partially" because many are at the early stage where they can still handle their finances and are able to learn to help themselves.  Maybe it is because of my personal experience with these seniors that I am very protective about the way people may post about them.   That article makes it sound like the "elderly" can't think for themselves.  I disagree with them and I don't see how my words were offensive to seniors.  If you have anything else to post to me about my post, I would appreciate it if you would do it in a PM.  This is not being taken in the direction that is the purpose of this forum.
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
10. Friday, July 12, 2013 - 12:03 PM
No need for a PM, I have nothing more to say to you about this or anything else.
5
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
11. Friday, July 12, 2013 - 1:14 PM
Your point is well taken and much appreciated.  I totally agree with you and will oblige your request for no further communications between us.
1
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
12. Friday, July 12, 2013 - 2:50 PM
paoli2 & pearlbrown: With respect to both of you -- and I say "with respect" because I have appreciated the contributions that both of you have made at DA -- don't you think perhaps that you are both being a little oversensitive? People can disagree with each other in good faith, without getting personally offended. And I really don't think that Shorebreak's original post was ever intended to offend the elderly or anyone else. Perhaps this exchange got a little carried away, and after reflection, you might want to reconcile -- it only takes one person to make the first move. If neither of you want to do so, then so be it, but at least think about it.

On Shorebreak's point, often people, including the elderly, tend to be a little too trusting of those they think are "experts," such as financial advisors, bank officers, and insurance agents, and can be swayed into investments that they either don't fully understand or which may not be appropriate for them. It doesn't mean that they are any less intelligent than anyone else, just that they may be more trusting. Many of the elderly, such as people my Dad's age, don't use computers and, therefore, don't have access to the wealth of information available at DA and similar sites. So I don't think the Massachusetts top securities regulator's concern is entirely unwarranted. And I say that as someone who is ordinarily distrustful of the regulatory powers of government bureaucrats, who are penchant to overstep their bounds.
6
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285
13. Friday, July 12, 2013 - 3:30 PM
Wil:  Because I respect you and your posts so much, I will admit that you brought out something I did forget about the elderly.  The "too trusting" part.   I think you just may have hit upon my mistake.  I cannot see myself, at any age, being "too trusting" of such people but maybe they are and that is what this can be all about.  I, apologize if I let my need to be so protective of the elderly to confuse my thinking on this subject.  In his own way, I am sure that Shorebreak only wants seniors not to be taken advantage of also.

 As for Pearlbrown's remarks, she made it very clear that she wants nothing to do with my posts now or in the future and I think we can both post best for DA if we do avoid each other.  Her avoiding me should have nothing to do with your still being able to participate in both of our posts.  I, always, enjoy reading and being able to respond to your posts.   Thank you for caring enough to intervene.
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
14. Saturday, July 13, 2013 - 2:06 PM
Great discussions, folks, just great:D
1
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
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