It is alleged that one of the causes of the French Revolution was a statement attributed to Queen Marie Antoinette. After hearing that masses of starving French peasants could not even afford to buy small loaves of bread, she laughed and said, "Well, Let them eat cake!"

She didn't get it, so off came her head, literally.

From history evolved the next expression that "you can't have your cake and eat it too." Wall Street's elite (financial advisors, CEO's, investment bankers, market makers, and research analysts) still think that they have a right to all the cake they can consume.

Somehow they still think the small investor is going to jump back on band wagon as soon as the latest geopolitical uncertainty, conflagration, or other event is over. And why not?

Even though many retirees had their savings decimated and more than 100,000 financial employees were made redundant last year, Wall Street and many company CEO's are still being richly rewarded. The most amazing thing, though, is that few have ever even offered to 'give' back any of their 'cake' to the rank and file worker.

Great wealth it has always seemed imbued recipients with incredible altruistic tendencies; much of that largesse spread in a dignified fashion among those who needed a hand up.

And this is very, very true for many wealthy families who have created living legacies through philanthropy and humanitarian assistance. There are some wealthy who not only do not think that they have enough, but they feel that they deserve more. Just how much is enough? If you have $20 million, is that enough? If you have self-respect, is that enough?

The reality is that many of these incredibly overpaid executives just don't get it. Case in point: on Monday, the New York Times reported a simply amazing story.

The New York Stock Exchange (NYSE) Board of Directors had put forth the nomination of Sanford Weill to the Board. This is the same Mr. Weill who is alleged to have helped his employee, research analyst Jack Grubman obtain a coveted nursery school slot for his twins in return for Mr. Grubman re-evaluating a bearish rating on AT&T stock.

This is the same Mr. Weill whose Salomon Smith Barney unit will pay the highest fine in investment history - $400 million for its role in perpetrating fraud in stock research analyst practices.

When the NYSE announcement caught the eye of New York Attorney Eliot Spitzer, he was outraged, calling Weill's nomination a "gross violation of the public trust." The Board of Directors of New York Stock Exchange (NYSE) main role is to represent the interests of investors in matters before the exchange (on the web at: http//www.nyse.com).

Currently, some other Directors, Martha Stewart (resigned October 2002); William Harrison, JP Morgan Chase; Jean Marie Messier (resigned January 2003), Vivendi; David Komansky, Merrill Lynch; Michael Carpenter, Salomon Smith Barney have either clouds of alleged firm and/or personal malfeasance hanging over their heads, or their company stock is on the skids.

Two days later, Citigroup's CEO Sanford Weill withdrew his nomination amid mounting criticism that this position (with him in it) would certainly not give the appearance of serving the interests of small investors.

It's hard to understand why there isn't more public outrage over the endless litany of Mae West-type financial wanderings off the path of public good (to quote Warren Buffet's 2002 letter to shareholders).

As she famously said, "I was Snow White, but I drifted." Maybe investors are just too beaten down; after all, this isn't the first time where serious "drifting" by major financial firms earned them unsavoury reputations.

In the 1990s, the SEC took 24 firms to court for price fixing margins (the spreads) between buy and sell quotes on the NASDAQ. It seemed that institutional traders received the best spreads and the small investor day trader the worst. Some of the same names as today - Merrill Lynch, Salomon Smith Barney, Paine Webber, and others - paid monstrous fines then (while neither confirming or denying that they committed wrongdoing, the classic plea financial bargain).

In the 1980s, Salomon Brothers attempted to corner the treasury market by using phony client accounts to purchase the largest positions. Caught and fined. These are just a few high profiles of financial crimes and misdemeanours; you can read about the small fish ad infinitum on the SEC website: http://www.sec.gov. Or read Arthur Levit's book, 'Take on the Street - What Wall Street Doesn't Want You to Know'.

None of this greed is good for the common man. When is it going to end? Certainly, not with Marie Antoinette haircuts.

It will end when investors everywhere take control and responsibility for their personal finances. It will be contained when investors really educate themselves about investments and learn to make informed judicious decisions.

Have you heard of socially responsible mutual funds? These are run by fund managers who do not invest in companies that pollute the atmosphere, produce cigarette toxins, or chemical warfare supplies, deforest the landscape, and the like.

Maybe, just maybe it is time for new type of investment product, say mutual funds (and companies themselves) that are classified as corporately responsible. Think of it, mutual funds that invest only in companies who practice decent business ethics and good corporate governance.

Is there is a market for this type of investment? If significant numbers of small investors said, "enough is enough", and voted with their pocketbooks (since they can't vote with their proxy), it could have a major impact. Every investment has to have a willing buyer as well as a willing seller, if no one buys? Well, what do you think?

Or is this all just rhetoric? Want to bet that just as soon as the market turns and investment values rise quickly, investors will start to feel wealthy again. Everyone will forget about the bear years; everyone will return to the same old thing, chasing the hot investment because after all "money talks, while..." I leave the phrase for you to finish.

@EDITRULE:

Martha Harris Myron CPA CFPr is a Bermudian, a Certified Financial PlannerT(US license) practitioner and VP, Personal Financial Services at Bank of Bermuda. She holds a NASD Series 7 license, and formerly owned a US financial services practice meeting the needs of 400 individual and corporate clients.

Confidential Email can be directed to marthamyronnorthrock.bm

The article expresses the opinion of the author alone, and not necessarily that of Bank of Bermuda. Under no circumstances is this advice to be taken as a recommendation to buy or sell investment products or as a promotion for financial plans. The Editor of The Royal Gazette has final right of approval over headlines, content, and length/brevity of article.