Vanguard is not a non-profit

Dan Weiner makes that point clearly in this article in the Philly Inquirer today, Vanguard partnership profits up 15% over 2016, by Erin Arvedlund. A few interesting notes,

 

*Wiener estimates current CEO William McNabb takes home between $12 million and $21 million, based on how partnership units were awarded to previous leaders such as Bogle and Jack Brennan.

Here’s something to think on that someone shared with me: today only management makes ‘big’  money from Partnership …non-management is on a lower cap of partnership. When Mr. Bogle created partnership, the funds were distributed more even across CrewMembers. McMcNabb is receiving more funds that he should and these funds should be shared.

And here is another take away from the article…’In his latest newsletter, Wiener writes: “Since its first year, the Partnership Plan’s dividend has risen 62 times. The value of one share of 500 Index has, with all distributions reinvested, grown 27 times over the same period. The takeaway for a Vanguard investor is pretty clear:  Vanguard is not, and has never been, a nonprofit, though much of the language around ‘operating at cost’ does, at times, make it sound as though it is. The company is exceedingly profitable, and hence has the ability to pay its captains millions of dollars every year,” he writes, adding that 90 percent of the top executives’ compensation comes as dividends from the Partnership Plan.”

Vanguard is a for profit company that did not pay taxes and the IRS case is open and has been in  investigation since 2013.

The Fox is Guarding the Henhouse…

Are you kidding me!!! what’s wrong with this picture, it should NOT be allowed, it ain’t complicated folks, but hey, common sense ain’t  so common, I’ve come to learn…

FINRA Board of Governors – was this published before? Can this Chairman role be handled by a former President of Vanguard? Will any conflicts arise?
___________________________________________

FINRA Board of Governors

Chairman

John J. Brennan
The Vanguard Group, Inc.
Malvern, PA

FINRA CEO

Robert W. Cook
President and CEO
FINRA
Washington, DC

Public Governors

Carol Anthony (John) Davidson
Retired
Princeton, NJ

Shelly Lazarus
Ogilvy & Mather
New York, NY

Joshua S. Levine
Retired
New York, NY

Brigitte C. Madrian
Harvard Kennedy School of Government
Cambridge, MA

Eileen Murray
Bridgewater Associates
Westport, CT

Charles I. Plosser
Former President and CEO, Federal Reserve Bank of Philadelphia
Amelia Island, FL

Randal K. Quarles
The Cynosure Group
Salt Lake City, UT

Hillary Sale
Washington University in St. Louis
School of Law
St. Louis, MO

Leslie Seidman
Former Chairman
Financial Accounting Standards Board
Westport, CT

Luis M. Viceira
Harvard Business School
Boston, MA

Elisse B. Walter
Former Commissioner and Chairman
U.S. Securities and Exchange Commission
Bethesda, MD

Susan Wolburgh Jenah
Former President and CEO
Investment Industry Regulatory
Organization of Canada
Toronto, ON

with this picture, it should NOT be allowed, it ain’t complicated folks, but hey, common sense isn’t so common, I’ve come to learn…

The Audacity of Vanguard …..

Joe DiStefano says it best in the opening sentences, ‘Who knew that a mutual fund company, like a political campaign, is seeking to hire lawyers to do opposition research, searching for questionable activity by rivals, in hopes of using it against them? Vanguard did just that. Click here to read the full article, Vanguard’s novel want ad sought lawyer to dig up dirt on its rivals’, Joe DiStefano, June 7, 2017

And, how about this ad, if opposition research isn’t your specialty, but firing people is, another ad for a Vanguard position in Arizona may be of interest. Among other human-relations duties, the company seeks applicants willing to “support the involuntary termination process for crew members,” and to “recommend and conduct termination as needed.” “Crew members” are what Vanguard calls its 15,000 employees.’

By the way, there is clearly a theme here…it’s COMPLIANCE……

Actual Posting that was removed:

Associate Counsel, Marketing

110984
Malvern, PA, US

June 5, 2017

Apply
Keep Me In Mind

Add to Cart

Vanguard is a leading provider of financial products and services to individual and institutional investors worldwide. In addition, Vanguard is an employer of choice that continually invests in the growth, development and success of its employees over the course of their Vanguard careers. Known for its strong ethical business practices and client focus, Vanguard fosters a collaborative, team-oriented environment that rewards and recognizes its attorneys for providing business-focused legal solutions, with a strong emphasis on excellent client service and relationship management skills. Vanguard is seeking an attorney to partner with the business and Compliance to provide legal advice on all aspects of marketing and brand management issues.

Specific Responsibilities:

  • Provide thought leadership on all marketing, advertising and brand management issues.
  • Advise the business on the creation of a holistic brand management strategy and a marketing rules-based framework.
  • Coordinate with PR on brand management issues and assist with positioning of content.
  • Serve as a legal resource for our Advertising Compliance Group.
  • Create guidelines to differentiate between marketing and servicing communications, and create appropriate processes to evaluate these different materials.
  • Provide legal advice on all aspects of Vanguard’s use of social media.
  • Advise on marketing campaigns at their inception to ensure campaigns are consistent with all relevant laws, including FINRA marketing regulations.
  • Provide legal advice with respect to FINRA inquiries on Vanguard marketing materials.
  • Review competitors’ campaigns for possible FINRA violations; advise the business on whether to raise matters with FINRA.
  • Draft regulatory comment letters related to FINRA advertising rules.

Qualifications and Experience:

  • Minimum 5-10 years of relevant professional experience; excellent undergraduate and law school academic credentials
  • In-house experience required, preferably in a global organization
  • Demonstrated ability to influence business leaders and impact decision-making
  • Demonstrated track record of providing business-focused solutions that combine excellent judgment, creativity, risk-taking, and technical expertise
  • Demonstrated expertise in the use of data and digital market trends
  • Shares Vanguard’s values, including unmatched ethical standards, teamwork, client service, work ethic and positive attitude

Vanguard is not offering visa sponsorship for this position

http://www.vanguardjobs.com/job/7420221/associate-counsel-marketing-malvern-pa/

 

And here is the other posting:

Specialist, Crew Relations and Compliance

110685
Scottsdale, AZ, US

June 6, 2017

To provide timely and objective advice and counsel to Vanguard crew throughout their lifecycle with the organization, and to mitigate risk through the effective resolution of crew-related issues.Duties and Responsibilities

  • Provide site, division, or case-based insights to Crew Relations & Compliance CoE leadership to assist with design of strategies, frameworks, policies, and processes.
  • Support the involuntary termination process for crew members.
  • Support consistent policy interpretation and application of HR policies globally. Identify divisional or regional nuances in addressing crew-related issues and suggest potential process improvements to address these nuances while maintaining compliance with local regulations.
  • Work with managers and crew as needed to understand, monitor, and resolve crew complaints and conduct investigations as needed. Partner with Crew Relations & Compliance Leads and HR Policy & Risk Management Lead to address sensitive matters as needed while mitigating risk.
  • Provide objective coaching and counseling services to managers and crew. Clearly guide managers through the appropriate steps to be taken for corrective action due to crew disciplinary or performance issues. Recommend and conduct termination as needed.
  • Recommend appropriate programs for specific crew situations. Identify and highlight benefit programs provided by the Total Rewards CoE with the highest impact to crew due to utilization and/or perceived value. Suggest ways to optimize program value.
  • Partner with Crew Relations & Compliance Leads, HRBPs, and Talent Management CoE to lead and/or facilitate performance differentiation sessions in the business. Assist with fostering broad dialogue across the talent spectrum during differentiation sessions and identifying key performance-related trends. Provide guidance to managers in addressing performance-related issues.
  • Conduct in-person exit interviews for voluntary departures. Partner with Crew Central to efficiently process voluntary departures. Provide criteria for exit interview analysis and assist in analyzing exit interview data to mitigate risk and identify trends.
  • Provide leaders in the business with consultative support throughout the progressive investigation process by facilitating the process for either a disciplinary or performance-related issue. Provide dedicated support to both crew and leaders as needed.
  • Support educational initiatives for HR crew on internal and external compliance requirements and related process controls.
  • Conduct new manager assimilations as appropriate.
  • Facilitate the unemployment process as needed. Represent Vanguard at hearings as needed.
  • Assess, monitor, and manage crew trends for book of business.
  • Partner with other service organizations regarding crew matters as appropriate including Fraud, Information Security, Physical Security, Compliance, Audit, etc.
  • Participates in special projects and performs other duties as assigned.

Qualifications:

  • Undergraduate degree in related field or equivalent combination of training and experience. Masters Degree and or HR professional certifications preferred.
  • A minimum of three to five years previous employee relations experience.
  • Employee relations and/or compliance experience preferred
  • Ability to remain poised and professional under potentially contentious situations
  • Sensitivity in working with confidential information
  • Proven teamwork capabilities
  • Strong oral and written communication skills
  • Excellent project management skills, including planning and organizational skills
  • Attentive to details and deadlines; ability to manage multiple initiatives
  • Ability to effectively work independently and identify when to engage others

Additional information: 

  • This position will report to Ruby Gilchrist.
  • Vanguard is not offering visa sponsorship for this position.

Bogle, Index concentration concerning, future impact uncertain…

Jack Bogle made these comments speaking to a group today, Vanguard’s Bogle tells CFA Institute…., by Erin Arvedlund, May 23, 2017

“index-fund management is heavily concentrated among three giant, trillion-dollar money managers that together hold some 20 percent of U.S. stocks,” Bogle said. “The impact of all this concentration remains to be seen.” . He speculated that concentration could even invite scrutiny from regulators.

The three firms are, ‘ Blackrock, State Street Global Advisors and Vanguard, with a total of about 21 percent of the entire indexing market.’ Just so you know please take a minute to see who really owns Blackrock, and State Street, and so you can drill down into better understanding providing links to further educate you, and if you don’t know Wellington and Vanguard go back to Bogle’s beginnings, do some homework, Blackrock, PNC, State Street. T.Rowe Price, Discover Financial Services…..there is an antitrust issue here, I have no idea why mainstream media is not reporting on this, (United States antitrust law is a collection of federal and state government laws that regulates the conduct and organization of business corporations, generally to promote fair competition for the benefit of consumers. )

Please read the article for the full story, the link has been embedded to make it easy. I have pulled out the blatantly obvious that supports what I know to be  facts, and those facts are, number one, you betcha Vanguard is getting scrutiny from regulators, the IRS has an OPEN investigation going on OVER four years for TAX EVASION, and I know for a FACT the SEC and FINRA are both investigating Vanguard, and I happen to know a WHOLE lot about those charges too. So, I’ll say it again, and again, you have been educated. In life we make decisions based on the knowledge we have. You have been given voluminous knowledge on the injustices and unethical behaviors at Vanguard. Indexing has caused significant damage in America. The article states, ‘Bogle predicted that 10-year equity returns could be as low as 4 percent annually, based on the current price-to-earnings compression in the stock market.’, looks like active management may have a value added over the next 10 years if they only have to beat 4%.

 

 

Index Funds have done MASSIVE damage to America

 

When you invest in companies and put no brain power or reasoning behind the investment no good can ultimately come from that. Index funds simply invest in companies because of market share, regardless of the ethics or morality of the company. Please tell me what is good about that? If you, the consumer, are not pleased with the ethics and behavior of a company your power is in your dollar, where you invest and where you spend your dollars.  Don’t complain and then throw your money in index funds, that feed billions upon billions into corporations that make headline news for unethical and immoral behavior on a daily basis.

Billy Graham, a remarkable man with a heart for God, always…..

Billy Graham   in 1949  at the Los Angeles crusades  prays specifically for, ‘praying for an old fashion, Holy Ghost, Heaven sent revival, that will sweep America from coast to coast’, No Nation improves without a moral revival, he went on to say in this video, ‘“I’m absolutely convinced that no matter who’s elected, America is not going to be saved unless we have a moral and spiritual revival … no nation has ever improved morally without a revival.” Billy Graham understands the importance of prayer, he walked it, lived it and never lost sight of what was behind his success.

Morgan Stanley Drops Vanguard Mutual Funds….

Morgan Stanley, the largest U.S. brokerage by salesforce, said on Wednesday it is dropping mutual funds from Vanguard Group, the largest U.S. mutual fund firm, to read more, click, Morgan Stanley Drops Vanguard Mutual Funds.

Here’s a question, Vanguard mutual funds have a liability to The Vanguard Group to the tune of $3 billion dollars, I don’t believe Vanguard ETFs have this same liability, is it better to own the ETF or the mutual fund because of this? Is JP Morgan in any way making a decision based on this knowledge? I sure don’t know, but it is interesting.

How much is Vanguard Worth, December 15, 2015 Joe DiStefano, from the article, ‘In addition to financial and professional services expenses (Vanguard has long reported its management-fee ratios), Vanguard funds have begun noting in their liability statements that they also owe “Payables to Vanguard.” The ” Payables,” a footnote says, include operating costs “such as deferred compensation/benefits and risk/insurance costs.” For all Vanguard funds,  these ‘payables’ total more than $3billion.

 

Premier tax publication responds to Danon Third Circuit Ruling

Included in this document is the following summary from initial court filings…Premier tax publication responds to David Danon’s Third Circuit decision

In that case, Danon brought several claims against Vanguard, alleging that it had failed to report more than $1 billion in state and federal tax liabilities. His complaint brought several claims under the state False Claims Act, including failure to pay taxes, conspiracy, presenting false records, and retaliation.

Folks, the handwriting is on the wall….

This is such an incredibly sad story that I had to sit on it and decide whether or not to post, it’s about a PONZI SCHEME, small scale albeit, in Charlotte, NC, only $16million….but the story is the same I see over, and over….the authorities, you choose, SEC, FINRA, FBI, are in the know and investigating, YEARS, before the public is aware and privy to inside information…often after the public has lost millions and billions of dollars…why,  because of red tape, it takes time to investigate fraud, think on this, if it takes authorities 4 years to figure out this tiny Charlotte case, how long is it going to take to figure out Vanguard…folks, I’ve been trying to educate you and forewarn you, whatever comes to fruition I’ll have little sympathy, you didn’t do your homework and act when you had  a chance.

Rick Siskey had a quick rise in Charlotte and a quick fall…

Siskey’s swift rise suffered a setback in 2004 when he accepted a two-year ban from being associated with a securities firm and agreed to pay a $10,000 fine over private securities transactions.

At issue were transactions Siskey had participated in from 1998 to 2001. The offerings had been filed with the Securities and Exchange Commission, but Siskey had not given proper notice to his employers, a violation of industry rules, according to the consent agreement with the regulator now known as the Financial Industry Regulatory Authority. Siskey neither admitted nor denied the findings.

These same transactions later became the subject of a settlement with the U.S. Labor Department in 2011.