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Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 9/12/2006 9:27 AM

Herb Greenberg is shocked, shocked I tell you, over the idea of people compromising his privacy by getting his cell records. Shocked as a "journalist" and shocked as an American.

Read all about his shock here.

Of course that is the sort of selective shock and outrage you can expect from Mr. Greenberg. His acquaintance Mr. Rocker expresses the same shock and outrage that anyone would try to stifle his free speech. But when Rocker sues message board posters to stifle their's, that's different.

And when Herb doesn't make a peep over cell records and bank statements being stolen from NCANS and used to try to track my identity, well, let's just say there's no outrage at all. So I think what Herb is saying that when these things happen to HIM, they are shocking and outrageous. When they happen to critics of his little camp, they are just par for the course.

How do you spell hypocrisy? When Eisinger is calling private unlisted numbers, that isn't a big deal - nobody should be fired for that. When he obviously has confidential bank records, no big deal. But wow, Herb gets his bills stolen in exactly the same way, and it should be a capital offense.

Chris Byron at the NY Post also is shocked over the same behavior. But again, not when one of his colleagues in the NY press accesses the same sort of ill-gotten info. None of these brave freedom fighters made a peep when a PI did the same to NCANS.

Here is a self-evident excerpt that proves my point about selective outrage:

"Weeks later, my phone records were stolen from an AT&T subcontractor. When the SEC subsequently charged Thomas with running a pump-and-dump swindle and subpoenaed his phone records, they were found to contain the numbers of confidential sources I had called in researching my story."

Wow. Just like Eisinger did to NCANS, calling all those confidential numbers and citing confidential banking info. I wonder if we can expect an article about how certain journalists should be fired and brought up on criminal charges? No? Didn't think so..

----------------

There are a number of great comment letters now making their way onto the SEC website.

This one from  the Governor of Utah is short and sweet.

This one from a Canadian broker/dealer is a must read.

Kind of amazing that all these apologists are out there insisting that the practice doesn't happen, or isn't a big deal, and yet so many industry insiders and such understand it to be a big problem. What is the disconnect? It couldn't possibly be that the scumbags abusing the markets have mounted a Milken-like PR campaign using every hack in NY to create a sense that there is no problem, could it? I mean, that would be so, well, historically consistent with every other time the industry's royalty get caught stealing....

I hear there is an OSTK letter that is coming down the pike that is also a great read. I'll link it when it goes up.

-----------------

Dr. Trimbath is hosting a panel discussion on Naked Short Selling, which should be a knockout. Here's the full text of the release:

"On October 19, STP Advisory Services, LLC, will present a rare look into the damage done to investors and companies by short selling and settlement failures. The event will include remarks by three speakers with special insights.

Dr. Patrick Byrne, CEO of NASDAQ-traded Overstock.com, will discuss the trading of “phantom shares” that appear to far outnumber those officially issued and outstanding in OSTK. Portfolio manager and financial writer Arne Alsin will reveal insights gained as an investor in large-lot trades in markets systemically flawed by settlement failures. Dr. Susanne Trimbath, an economist with operations management experience at DTCC and the Pacific Clearing Corporation, will illuminate how trading practices take advantage of loopholes in the settlement system to the detriment of both public companies and investors.

A preliminary agenda and speaker list is available through our website at www.stpadvisors.com under “Events.” Mark your calendar now and plan to join us for this important event, the first of its kind being held on the West Coast.

Presented by: STP Advisory Services, LLC
Event name: Naked, Short and Greedy: Is Wall Street Fleecing Investors?
Date: October 19, 2006
Location: Park Hyatt Los Angeles, 2151 Avenue of the Stars, Los Angeles, CA 90067
Registration fee: $45 in advance, online secure credit card payments only. $60 at the door, cash or company check only
Breakfast: Included with registration

----------------

'lilGW's ill-followed blog has another attack on the market reform movement, this time because the NCANS comment letter lacks a signature or an address. Note that Gary's blog contains neither. It also doesn't contain anything that rebuts even one single point articulated in the NCANS comment letter, which has been endorsed now by hundreds of folks.

So why is an obscure author so desperately trying to paint an issue that the SEC, as well as the state securities regulators, as well as prominent politicians, as well as broker/dealers, as well as noted academics, as well as even the hedge fund industry suing the prime brokers, all recognize as a significant problem...as a smokescreen being used by stock fraudsters? His line of reasoning is a classic bit of "Chewbaca defense" - from Southpark. He claims that NCANS is advancing some sort of corporate agenda...what would that be, sweetie? Settle the frigging trades? Observe the securities laws? Adhere to the 1934 Act? Wow. What sneaky corporate touts we are. Hey, I know, when 27 million shares of FTDs happen with a company which has 1 million shares outstanding, and their market cap is cut by 99.7%, that is a meaningless statistic. So is OSTK's climb from a few thousand FTDs to many many millions.

I couldn't imagine a more venomous bit of drivel if he was being paid to write this pap. Not that I believe anyone would compensate 'lilGW for his marginal talents, given his minuscule following and the lack of any coherence to his arguments, such as they are.

He dismisses the growing mountain of FOIA data as meaningless statistics, and makes false and misleading claims about those of us working for investor protection, yet never explains why those are meaningless, or how we are being tricky. Classic Chewbaca. Albeit not particularly skillful. But you have to work with what you have, I suppose.

This is the brave defender of investors? Please. It couldn't be more transparent if he was inventing aliases and engaging in back and forth dialogs, both on his blog, as well as message boards, as well as in his book reviews - which we have been assured he doesn't do.

I find it spectacularly funny that his blog, which I haven't looked at for some time (and apparently few others have, either) contains glowing words from Herb, who writes missive after missive attacking the targets of a cabal of hedge funds, and was recently subpoenaed over his role in the Gradient/Rocker Overstock suit.

Huh.

So let me see if I understand this. 'lilGW attacks those who are fighting to end an illegal manipulative technique - and is supported by those aligned with those believed by many to be the driving force behind the manipulations.

Huh again. If only there were some sort of a sign. Something that could make it clear for us....

Copyright ©2006 Bob O'Brien
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Comments (26)
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By newspaper on 9/12/2006 12:44 PM
you missed one big story
just how dirt is Morgan Stanley?
they break every signle trading rule ever created.

http://www.bloomberg.com/apps/news?pid=20601109&sid=a4Iy3J2GROBk&refer=home
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By JumpinJack on 9/12/2006 12:49 PM
I sent a thank-you letter to Mr. Whitlam at Research Capital. Just thought someone ought to commend him.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By powerful on 9/12/2006 12:53 PM
Powerful comment letters. The one from Research Capital, a Canadian brokerage is very compelling

- does the percentage of trades by dollar value include hundreds of billions of US debt that also settles through the DTCC? That would be a very deceiving comment if it included debt.

- the Herb Greenberg's of the world are going to realise that it isn't smart to make yourself the poster child for ripping off widows and orphans in a scam that has caused many to lose their jobs. No, Herb, your address is not anonymous.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By bobo on 9/12/2006 12:55 PM
Thanks for introducing that article, newspaper. I actually am typing from an airport, and forgot all about it.

How surprising that Wall Street royalty is largely lawless.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By Samiam on 9/12/2006 12:57 PM
Anyone else think that Gary looks like a coke-fiending ugly brother of Lou Reed, complete with bad dye job? Is he standing on a box in his photo? Tony Ryals is like his favorite follwer.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By powerful on 9/12/2006 1:01 PM
I always thought Gary looked like a mob goodfella.

These guys are all going to be sorry they put their faces on this scam. Ma and Pa investor are going to be royally pissed as they figure it out.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By mhatmccane on 9/12/2006 1:08 PM
I have to wonder how the SEC is going to dodge investigating the manipulation in
OSTK in light of the letter from Research Capital - 39 times they tried to buy in and 39 times they failed. Makes one wonder about those millions of shares traded since Feb2006. Oh, that's right, they don't comment on investigatiions -haha haha haha
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By mhelburn on 9/12/2006 1:43 PM
I read through most of DeCosta's letter to the SEC. Too bad this is such a terrible situation and his 79 page letter could be expanded upon. The part that really griped me was his very rational explanation of how the DTCC rules ever got SEC approval. Anyone that signed off on it needs to be on a "where are they now?" list that shows how certain people sold out America for a buck. Hemingway posted the latest letter from Grassley to the Commissioners. The idea that these people at the SEC are trying to avoid giving up the goods to the people who are in charge..namely Congress, just makes me incredulous. Perhaps a few more days will pass and Congress will simply go in and arrest the offenders. Get a clue. How about cutting off their paychecks?
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By InTheKnow on 9/12/2006 2:03 PM
Like James Cummins said in his addtional posting on the forum at antisocialmedia.net to the administrator ...

" I believe you are mistaken by going after such a trivial figure in Weiss with such zeal, but that is your right though and I am not interferring with it. There are a lot of bigger targets out there which deserve your attention more than Weiss."
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By davidn on 9/12/2006 2:36 PM
Mary, I've been saying for a while that we need to make this personal.

We need a list on the front page of this site that is a bit of a rogues gallery. Maybe a quote wall with bios and pictures, then quotes from the rogues.

I'll get it started:

Annette Nazareth "they are just mad because their stock prices didn't go up"

Other notables would be Jim Cramer with his subpoena pic or Herb in his orange jumpsuit.

Cockroaches don't like the light. Our enemy is not some anonymous regulatory organization. It's individual people who are selling us out for a buck.

They need to be made accountable.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By virakiller on 9/12/2006 2:44 PM
all we are asking for is fair traded markets

give America its money back then go to jail
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By rtway1 on 9/12/2006 4:18 PM
I just wonder if this is a gimmick on Herbies part to divert attention away from something else. He also has distanced himself from Cramer or vice versa, and they were the dynamic duo for quite awhile. Something seems strange here. Whatever GW has to say isn't worth writing about much less reading it.
Re: Great Article On NSS Featuring Dr. Byrne By rtway1 on 9/11/2006 8:51 PM By robelita on 9/12/2006 5:58 PM

My problem with you robelita is that you dance to a different tune at different times .When one puts their finger in the wind the prediction or weather can change. I feel the same about you and I hope I am wrong, but I would be re-missed to say that I think you follow the main stream media. Time will tell. At least I would like more info on GW as he depicts the parasitical world we live in. My faith in a GW news article would be like watching the Simpsons.

wrongway,

Are you for real? I have been completely and utterly consistent-our current government is irreparably broken by the two-party system. I have stated so REPEATEDLY in most of my posts here. You haven't a clue about my presence here and and your clairvoyance skills lack even the most fundamental precepts.

FWIW-I AGREED with you but now I realize you are just another parrot.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By nabrum on 9/12/2006 6:57 PM
"We need a list on the front page of this site that is a bit of a rogues gallery. Maybe a quote wall with bios and pictures, then quotes from the rogues."

davidn. What a FANTASTIC idea! The Wanted Posters, and the quote(s) would put the nail in their coffin. Pictures speak a 1000 words.

Bobo. Would there be a place on the sanitycheck for this? Not the MS Paint section, but it's own section. Complete with a paragraph on who the person is/does, and their damming quotes. Unsueable, since it's all public domain speech.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By oldfeller on 9/12/2006 8:26 PM
re: nabrum
I say stupid things all the time, if you read my posts you will notice. Taking potshots at the easy targets will just make them more defensive. I would prefer to take the high road. The stock market has been a den of thieves since it started. It most likely always will be. Instead of picking on individuals let`s just smile at them collectively and say you crooks have stepped over the line and it`s time to clean things up. That`s just me. If they just leveled the playing field I would be happy. I really doubt anyone knows exactly who did what and which people were working together to perpetuate this mess. I would rather look forward to a transparent market than dirty my hands trying to punish the parasites that already got fat.
Quote By JR on 9/12/2006 11:18 PM
==========================

Here's the thing about truth: It may take a while. It may take years. But truth's a tenacious battler. Eventually it will come out.

-Anonymous

==========================
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By Crimes & Punishment on 9/13/2006 4:32 AM
<>

Oldfeller, that's exactly what's been going on for 100 years and exactly why it continues to go on. When financial crimes go unpunished, or even limited to fines that amount to a cost of business, those crimes will flourish.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By hearmeroar on 9/13/2006 6:38 AM
Herb et al are in trouble.

People are getting their news from blogs like this one rather than the mainstream media.

"I am blogger hear me roar!"

http://www.whatreallyhappened.com/blogger.html
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By newspaper on 9/13/2006 8:08 AM
Annette Nazareth "they are just mad because their stock prices didn't go up"

I am angry because the SEC grandfathered fails. Why did they do it? Why did they never explain to us why they did it?
It would have been so simple for the SEC to tell give us some reason or explanation why they decided to grandfather fails. Instead they just put the clause in at the 11th hour and pretended it never existed.
Who shorts massively? Who creates fails? Hedge Funds - Investment banks do retail does not.

Why wont they tell us what the real short interest in any stock is?
Why wont they tell us what the monetary value of fails are?
Why wont they tell us how many fails are in the market without FOIA requests?

oh yeah…

They wont tell us because they don’t want to cause any short squeezes for the big firms they are protecting, but who buys and goes long?
Wait for it

RETAIL and retirement IRA’a and 401k’s!

They are protecting the Hedge Funds and Investment Banks from US small retail investors who would steal their big money if we just could attain the information that we should have had in the first place.

I am angry because the SEC fines banks anemic fines while they break a massive amount of trading laws, And they always get away with it without admitting wrongdoing!

I am angry because stocks go on REG-SHO and after T+13 there is NO BUYIN. When I found out the SEC Recommends but does NOT Require buyins I was aghast!
Look at Pgwc all of the longs there were holding out hope for t+13 the days came and went and the share price went down and now its T+19.

We have been beaten and robbed, bloody and broken we ask the SEC for help. In response they (the SEC) whispers to us “it was no ones fault but your own”
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By virakiller on 9/13/2006 8:37 AM
the coward sec is PLAYING WITH FIRE
because the good hardworking families that invest will be in the street VERY SOON
looking for fairly traded markets OR blood

Get with the laws of 34 before it is too late hedge funds and sec because we are out for fair markets or blood

choose one cowards/traitors
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By anon on 9/13/2006 8:40 AM
"In his book, Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market, author Dan Reingold detailed his experiences as a top industry analyst and the problems he saw from the inside. Amy Borrus (deputy director of the Council of Institutional Investors and former journalist for BusinessWeek) will moderate a discussion of how Wall Street is working to resolve the conflicts of interest between stock research and investment banking with Reingold and Laura Unger, a former SEC commissioner and now an independent consultant to JPMorgan Chase at 9:45 a.m. on September 19.

The growth of securities lending has allowed hedge funds to borrow votes by the boatload. Professor Henry T.C. Hu, who holds the Allan Shivers Chair in the Law of Banking and Finance, University of Texas Law School, will discuss trends in securities lending and their implications for governance on September 19 at 11:30 a.m."CII's Annual Fall Conference Will Focus on the ABCs of Corporate Governance
Tuesday September 12, 2:55 pm ET

http://biz.yahoo.com/prnews/060912/dctu068.html?.v=36
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By clearthinker on 9/13/2006 10:31 AM
Don't be surprised if they stall ong enough to get long some of the issues that are going to run, when this unwinds. These scumbags are motivated by greed, and they will eventually get on our side if they can make a buck
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By virakiller on 9/13/2006 12:26 PM
soon we will be living in their houses and eating their food
and they will be shopping at the 99cent store like we do today

role reversal will be very painful because it will be hard to carry groceries from 99cent store with two broken arms
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By kevin on 9/13/2006 12:45 PM
I'm looking forward to driving their cars.

Did you ever see "Trading Places" with Eddy Murphy? One of my favorites - "Turn those machines back on!!!!!"

Aaron Russo, who produced that movie. His new movie battles the IRS and the privately owned US Federal Reserve and the mainstream media is giving it less press than they give share counterfeiting.

http://en.wikipedia.org/wiki/Aaron_Russo

http://www.freedomtofascism.com/

He would be a good one to get onside. Trading Places is a fitting title for our movement.
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By virakiller on 9/13/2006 1:42 PM
right on kevin

we will be trading places with these pigs

remember the end of trading places on the beach ?

we will all be partying as they are getting f%$ked in jail by bubba
Re: Herb and Byron Outraged; More Comment Letters; NSS Conference; 'lilGW Does The Chewbaca By newspaper on 9/13/2006 2:05 PM
Everyone and their mother think the SEC requires mandatory buyins after T+13. Now where did we all get that crazy idea from?
------
To reiterate, the 13 consecutive settlement day requirement for threshold securities also applies to long sale fails. Accordingly we also we will be monitoring long sale fails where our clients have failed to deliver on or prior to settlement date of a trade.

Mandatory Close-Out Requirement for Threshold Securities – Reg SHO will require each market center (e.g., NYSE, NASDAQ) to publish each settlement day a list of securities that have been failing to the CNS system operated by NSCC for a minimum amount over a defined period. (See the SEC’s release for the details of these requirements.) These securities are called “threshold securities.” Reg SHO requires that a broker-dealer who is failing for 13 consecutive settlement days in a threshold security close out its fail to deliver position by buying the securities in the market.
------

What the F#$%? What the hell? Are they lying to us? We all know the truth is the SEC’s definition of the word Require is Recommend.

It should read we recommend you buyin but don’t worry it’s not mandatory.
I mean could they get sued for lying or misrepresentation or what?

BTW
Liz, Moyer is at it again with another great article. She is my hero. I love her.
http://www.forbes.com/2006/09/13/naked-shorts-jp-morgan-chase_biz_cx_0913naked.html?partner=yahootix

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