From Hyatt to Hyatt

Tuesday San Diego. It is a perfect, magnificent Southern California afternoon. Sunny, ’70s, breezy, no humidity. A driver named Derek Kelley from CLS has driven me down to a shopping center near La Jolla where I am meeting a close friend named Joe for sushi. This man, whom I think of as a brother, worked for decades helping his brother, whom I also think of as a brother, in the financial planning business. Then, through circumstances I cannot fathom, the SEC came after the brother who was the financial planner. They accused him of all kinds of misconduct. He fought the case with high priced lawyers, and I was called to a deposition. I told the SEC that I thought that overall, the advice given by my “brother” was overwhelmingly helpful. I fact, as I told the SEC attorney who took my depo, I learned some life saving basic investment sense from my “brother.” The SEC pursued the case anyway, and my “brother” lost. He was barred from the financial planning and advising business for life -- and I still cannot figure out what he did wrong. However, as Conrad Black so aptly said, when you take on the federal government, you’re taking on the most powerful force in the world. So, my “brother” is appealing, but meanwhile he is barred from plying his trade. It is a damned shame, a cruel shame, because, first of all, my “brother” didn’t do anything bad, or at least seriously bad. Second, his advice was superb and people need superb financial advice. They can still get it from Phil DeMuth, who is as pure as driven snow and a genius. But it takes a cool million to be a client of Phil’s and not everyone has a cool million. For the middle class guy or doll, my “brother’s” advice -- stay liquid, diversify, and match assets against liabilities -- is still great advice. Anyway, it was a major downer as a dinner. My two “brothers” are not rich and have lots of legal fees and other debts, and I have no idea what they are going to do. It is scary. I do not want to wind up broke. I really ...