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NCANS Comment Letter Signature Update

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 9/14/2006 8:41 PM

If you haven't read it, take out a few minutes and read the NCANS comment letter to the SEC. We've added a few paragraphs near the end, but it is pretty much complete.

One thing you may notice as you read other comment letters is that NCANS places much of the blame for the current state of affairs on two things - security entitlements being credited to investor accounts without any underlying securities to support them (essentially a futures contract for a share at some unknown point in the future), and exceptions for market makers that provide them with a competitive advantage over investors and other participants - they are essentially being provided a business edge, at investor expense, sacrificing investor protection and the public interest in order to provide liquidity to a select group of business interests. Something the SEC is NOT empowered nor authorized to do, and which is in fact counter to their mandate in the 1934 Act.

Read it.

And then please, join the 730 people who have so far sent in their contact info for their name to be added to the letter.

The goal is to get to at least a thousand, if at all possible. It's been a push due to the busy fax line. I thank you all for your patience.

Please, email me your name and contact info, and put in language that says, "I support the NCANS letter and authorize you to affix my name to the letter." We are getting close. Let's push it over the top.

NCANS.mgr@gmail.com is the address.

I am personally typing in each name, so nobody else is seeing your info, and it won't be provided to anyone for any reason, other than to the SEC if they want backup for the signatures being bona fide. The final letter will have all the names, nothing else, no signatures, no contact info - exactly as many of the industry letters have names.

A thousand signatures saying fix this now. Sent in over one week. That's powerful. It's time to decide whether you are part of the problem, or part of the solution. We've done the heavy lifting. Just typing the names in have occupied several days of my time. Nobody has charged you a dime to create a significant white paper that comprehensively addresses the causes, and the solutions. Our volunteers have spent weeks working on this, editing, rewriting, arguing over solutions, testing the logic, crafting the language.

Send the email. Make your voice heard. This is your time to do something.
Copyright ©2006 Bob O'Brien
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Comments (25)
President of Best Minds Inc. By Doug Wakefield on 10/29/2006 4:50 PM
I saw that someone had read the article on short selling that was recently written for the September-October issue of the CFA Magazine, called, "Taking a Bad Rap". When we worked on our research paper on short selling, Riders on the Storm: Short Selling in Contrary Winds, we interviewed famous short sellers like James Chanos, and Manuel Asensio, as well as other researchers like Alan Newman and Doug Gillespie. We were able to attain a copy of the Pollack Report from the SEC library which gave us a great deal of information on the history of laws regarding short selling in the US since the establishment of the SEC. In regards to textbooks, we found a great deal of helpful information from Dr. Frank Fabozzi's book, Short Selling: Strategies, Riks, and Rewards. Finally, the NCANS site was very helpful when we reviewed information from the Federal Register and the SEC's website in conjunction to writing about naked short selling and Refco, a section we entitled, "Sharks eating the sharks".

The sad fact about our financial markets today is that while legal short selling is extremely hard due the the rigging of the game from fiat currency, and has taken a bad rap since it was started in the late 1600's, the continued growth of illegal short selling, which by the way is something mentioned in the 1986 Pollack Report,thus revealing that this issue has been around for years, is one more example of the growing action in a financial casino that has developed globally because of the ever expanding amount of fiat currency in the entire system.

So while we look at illegal, or naked short selling, we need to realize that this type of behavior is only one game in the every increasing list of reckless behavior in an environment where fiat currency expansion continues to increase speculation and where quelching the behavior will not be possible until the markets globally go through yet one more extremely painful chapter in financial history. Whether it is program insurance in 1987, the S&L Fiasco in the early 90's, the Mexico Peso debacle iin 1994, Asia meltdown in '97, LTCM, Market bubble of 2000-2002, Housing/Debt/Derivatives bubble(still pending downside), or Amaranth implosion in September, these early tremors are cluster patterns telling investors throughout the "money game", that when the leaders in the "money game" develop a policy of "too big to fail", and always step in to provide "liquidity" to certain "big" players, you are setting the system up to get hard when the laws of gravity finally take over.

I would encourage everyone to keep reading and thinking. Be careful. The cluster patterns continue to increase with intensity thoughout the system.

DW

Re: NCANS Comment Letter Signature Update By Wicked World on 9/14/2006 10:33 PM

I faxed my sig last week. Very pleased to do so.

I hope every affected, able hand does the same.
Re: NCANS Comment Letter Signature Update By bbhindyou on 9/15/2006 3:58 AM
I am very appreciative of all the work the people who created this letter have done.If the letter dosn't get the attention it deserves from the S.E.C. ,D.T.C.C. ,congress,ect.... I say we keep getting more signatures and people involved with this letter and hold a march.Maybe more than one.
Re: NCANS Comment Letter Signature Update By Government 4 Sale on 9/15/2006 4:21 AM
http://today.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2006-09-14T174859Z_01_N14203841_RTRUKOC_0_US-FINANCIAL-HEDGEFUNDS.xml

Hedge fund cash floods U.S. politics

By Kevin Drawbaugh

WASHINGTON (Reuters) - Top hedge fund managers are pouring money into U.S. political campaigns ahead of November's congressional elections as the government considers what to do about the lightly policed hedge fund industry.

Campaign finance records show 20 of the most successful U.S. hedge fund managers have pumped more than $3.1 million into campaigns so far in 2005-2006, up from about $1.1 million by the same group in the last mid-term election cycle.

By far the biggest donor among them is George Soros, of Soros Fund Management, who has donated more than $2.3 million in this cycle to Democratic candidates or groups, up from $112,500, according to PoliticalMoneyLine, a campaign finance research group.

Like Soros, hedge fund managers tend to favor Democrats over Republicans. They also give mostly to candidates and causes that interest them personally, rather than targeting key lawmakers with influence over regulating the industry.

(see full story)
Re: NCANS Comment Letter Signature Update By Government 4 Sale on 9/15/2006 4:23 AM
Truncating the links again
try this

Hedge fund cash floods U.S. politics

http://tinyurl.com/orz2x
Re: NCANS Comment Letter Signature Update By mhelburn on 9/15/2006 5:36 AM
The following has been sent to Senators and some Reps in GA ID PA CA NH MO NC Ark, TX MA OH

I am keeping score. You can private message me on the InvestorVillage message board with who you contact.

The National Coalition Against Naked Shorting in which I'm involved has written a letter to the SEC which outlines what is necessary to correct the shortcomings of Regulation SHO. I attach it for your consideration. http://www.thesanitycheck.com/Portals/0/NCANS.pdf Thank you, Sincerely,
Re: NCANS Comment Letter Signature Update By mhelburn on 9/15/2006 5:53 AM
If the SEC doesn't act, they are going to look like idiots when Refco blows up in their faces. All of the conspirators and their illegal trades which are possible because of the mishmash rules at the DTCC which violate the intent of the Securities Act will come to light. The trading in Sedona and the work of the LA AG is going to show how the SEC has compromised the markets. What are they doing? Why on earth are they having a meeting? Do they have to have a meeting to rescind all the rules that have caused this.. They better jump on this and do a thorough job.

Re: NCANS Comment Letter Signature Update By Stewart Oakes on 9/15/2006 6:33 AM
Do what is right and fix this now for ALL americans.
Re: NCANS Comment Letter Signature Update By davidn on 9/15/2006 7:01 AM
Refco reaches deal with creditors.

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-14T235857Z_01_N14221916_RTRIDST_0_FINANCIAL-REFCO-PLAN-UPDATE-2.XML
Re: NCANS Comment Letter Signature Update By davidn on 9/15/2006 7:02 AM
Refco and Yassar Arafat.

http://www.rgm.com/articles/refco4.html
Re: NCANS Comment Letter Signature Update By davidn on 9/15/2006 7:05 AM
http://en.wikipedia.org/wiki/Refco
Re: NCANS Comment Letter Signature Update By Concerned Citizen on 9/15/2006 8:30 AM
Liz Moyer continues her great work at Forbes.com. Gotta like the title of her new article, "Feeling The Heat". I am still waiting for UBS to deliver the documents.

Sometimes I feel like we are getting somewhere. I would like to thank all who signed up for the letter to the SEC.

--The SEC, which also charged Andreas Badian of the investment firm Rhino Advisors in the matter, alleges Badian used aggressive and manipulative short-selling tactics with the help of the Refco brokers to drive down the price of Sedona, which had traded as high as $10 before the short-selling campaign began.

Shares of Sedona rose almost 5%, to 22 cents. They have been rising since last month, when Forbes.com reported that the Louisiana attorney general was trying to force another brokerage firm, UBS Securities, to turn over loads of documents related to its trading and stock-lending activities in connection with Sedona.

UBS was supposed to respond to the Louisiana state officials this week.
Re: NCANS Comment Letter Signature Update By Jumbo on 9/15/2006 8:31 AM
Bob, Ramy needs your help. How about a blogg covering GENI ?

Organized Short Sellers Use Media to Disseminate False Information on GenesisIntermedia and Ramy El-Batrawi
Friday September 15, 9:00 am ET


LOS ANGELES, Sept. 15 /PRNewswire/ -- In early 2001, GenesisIntermedia (OTC: GENI - News) was heavily shorted by what appears to be a group of organized shorter sellers. Having established a sizable short position, the short sellers began disseminating negative publicity about GENI and Ramy El-Batrawi in an effort to drive down the stock price, states Mr. El-Batrawi.

Shorters began posting negative information on public message boards to drive the price of GENI down, but instead of dropping, the price continued to surge upwards. Then a reporter from financial news service Bloomberg started to write a series of negative articles on the company. The articles accomplished what the short sellers could not independently accomplish. Subsequently after the 9/11 attack, the negative press, and the concerted efforts of short sellers attacking the company trading in the stock was halted and once it resumed trading, it was all but worthless. This is a text book example of how the media can bring a stock down.

The shorts enlisted the help of journalists; one of them was a financial writer whose columns regularly appeared in Bloomberg News. Throughout 2001, he wrote a series of negative, and consistently inaccurate, reports about GENI and Mr. El-Batrawi. The journalist's efforts on behalf of short sellers where not limited to GENI, and some of his other targets fought back: in 2000, Computer Thermal Imaging, Inc. and Hitsgalore sued for libel, and in 2002, Wade Cook Financial Corp. issued a public statement challenging journalist's distortions of its public filings.

What happened to GENI is not uncommon, but is often a situation that goes unnoticed. One must always wonder what the motivation is of journalists who write slanted articles, either positive or negative. Are they reporting news or do they have other motivations or interests? Whatever the answer is, it is obvious that the media can have a direct influence on the value of publicly traded companies. It is also very obvious that the media can be influenced and corrupted.

Abusive short sale practices are illegal. It is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the sale of the security by others.




--------------------------------------------------------------------------------
Source: GenesisIntermedia
Re: NCANS Comment Letter Signature Update By plokiju on 9/15/2006 8:55 AM
CFA magazine has an article posted about naked short selling titled "Taking a Bad Rap". It's basically a lamentation about how lonely it is to be a legitimate short seller, primarily quoting Doug Wakefield of Best Minds of Dallas. The section dealing with naked short selling and REG SHO primarily quotes Finnerty, which is good. There is only one quote from Larry Thompson, which is also good. I'd link it, but its pay per view and a pdf.
Re: NCANS Comment Letter Signature Update By sarbjeet mission on 9/15/2006 9:16 AM
SEND NSS TO JAIL!!!!
Re: NCANS Comment Letter Signature Update By gregcable2002 on 9/15/2006 9:21 AM
SEC roundtable concludes with the opinion that all is well on wall street,no problemo,everyone gets a pair of rose colored glasses free of charge for their attendence.
Re: NCANS Comment Letter Signature Update By virakiller on 9/15/2006 9:26 AM
reading that refco and arafat and bawag article was really numbing to the senses
how can our elected officials sit back and watch our people get robbed by casino
gamblers in palistine ?

throw all out of office repub demo all GUILTY

AMERICA IS WAKING UP AND THEY ARE HAVING A MUCH HARDER TIME
LYING TO US

GET THE BATS PEOPLE AND MEET ME IN WASHINGTON
Re: NCANS Comment Letter Signature Update By jcline on 9/15/2006 9:47 AM
I just loved the comments ---------

Short sellers are a opressed minority ( poor baby's)

Short sellers are the allies of the SEC to prevent P&D P&D far more common, bear raids are infrequent (yep...those hard to locate stocks just need more transparency)
Re: NCANS Comment Letter Signature Update By Little Bo peep on 9/15/2006 10:56 AM
More smoke and mirrors entertainment.
Keep everyone confused about shorts verses naked shorts.
very "stinky fingers"

Cats in the litterbox now though about to uncover the "stinky"

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060915:MTFH77962_2006-09-15_16-41-29_N15410925&type=comktNews&rpc=44
Re: NCANS Comment Letter Signature Update By tommytoyz on 9/15/2006 11:02 AM
Remember, foreign investors in US markets are also invited to support the NCANS letter.
Re: NCANS Comment Letter Signature Update By CMElec on 9/16/2006 5:01 AM
<<< Nobody has charged you a dime to create a significant white paper that comprehensively addresses the causes, and the solutions. Our volunteers have spent weeks working on this, editing, rewriting, arguing over solutions, testing the logic, crafting the language. >>>

Clearly we all owe these volunteers a debt of gratitude that can not be repaid.

It falls short, but Thank You anyway.
Re: NCANS Comment Letter Signature Update By Just Do It on 9/16/2006 4:20 PM
Bob,

Why don't you just do the inevitable and sue WSJ for the bank records/phone logs crime? Wouldn't the same lawyers going after Rocker also want to go after his good buddies Dave Kansas and Jesse Eisenger?

Then I'm sure Colarusso and Greenberg would condemn the WSJ's "pretexting" on CNBC 3 times an hour....lol.
Re: NCANS Comment Letter Signature Update By Daniel L Means on 9/16/2006 4:15 PM
I own stock in Pavis , in which 2.65 billion shares of restristed stock was sold bye TDameriatrade as free trading and never recived shares from trust co and did nothihg to fix it . Not only did they hurt the share holders but the co to . Now they only let there clients sell and do not alowy buys . You most audit the C.N.S. We the little invester need the help of the sec you need to help the little guy . My email is mortgageforyou@ msn.com
Re: NCANS Comment Letter Signature Update By Bruce Thompson on 9/16/2006 4:18 PM
Hey EB. Your "Who is Bob O'Brien" link takes me to a page with Google ads. One of them is for TSDC and Jim C himself. Looked at your ads lately???

BT
Re: NCANS Comment Letter Signature Update By Google Ads are automatic on 9/17/2006 6:42 AM
Bruce - Google ads automatically reflect the words on a page.

It's the reason Google is a $300-400 stock.

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