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"SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 10/22/2006 1:32 PM

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Sign the Market Reform Petition now. Click here to view it.

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

First, dear readers, understand that it hurts me more than it hurts you to write today's column.

Honest.

Reason being, I ruptured a blood vessel in my hand (when big water meets a deck, things can move in unexpected ways), and am tapping this out one-handed.

So, where do I start?

Well, how about with the NY Times' astounding expose on the apparent SEC cover-up in the Gary Aguirre matter? Who would have guessed a year or two ago that the idea that our securities regulator is captured would be in the mainstream? That is pretty significant. And the evidence of favoritism and obstruction of justice from our top securities cop is beyond simply being troubling. It hints that Wall Street has managed to co-opt the Commission, and that the wolves control the policing of the hen-house.

Front page, NY Times. I think we can safely say the cat's out of the bag.

Will we see any real action, or more aw shucksy shucking and jiving from the Committee that oversees the SEC? I expect lots of noise with no action from the entrenched bureaucrats who think that running interference for powerful special interests is all good, and that we shouldn't be looking to fix something if "it ain't broke."

Another great article came out from Arne Alsin in the Financial Times, wherein Mr. Alsin skewers the industry for its lying, cheating ways. It is also a must read. Alsin brings real world industry perspective on the cesspool that is the modern market system. I consider his work essential for anyone doubting the reality of the NSS problem.

The Seattle Times had a brief blurb explaining NSS.

And in this stunning comment letter to the SEC, several top dogs at a broker explain how the system is so badly damaged and so compromised that any belief in its integrity is a sham, and a lie.

Speaking of dogs, whenever one thinks of sneaky, guilty dogs, the name 'lilGW can't be far out of the discussion. In this latest broadside, the ever vigilant Antisocialmedia.net offers yet more info on why the "editor" who keeps reverting the Wikipedia article on NSS to the hopelessly biased garbage that is the current ugly norm, is apparently 'lilGW, whose pathological behavior is as seedy as his prose is puerile.

So there is the abbreviated roundup of a very significant weekend. A lot of big news, and some amusing swats at everyone's favorite guilty (and none-too-bright) pooch.
Copyright ©2006 Bob O'Brien
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Comments (57)
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By anyone care if china puts pre$$ure on north korea on 10/22/2006 5:18 PM
http://www.bloomberg.com/apps/news?pid=20601087&sid=acF77NlFuBEA&refer=home

Goldman Sachs Group Inc. has managed to do in China what nobody on Wall Street has done anywhere: earn almost $4 billion from a six-month-old investment.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By InTheKnow on 10/22/2006 6:43 PM
The truth will come out!

SETTLE THE TRADES NOW!
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By whatajoke on 10/23/2006 9:23 AM
http://www.sec.gov/rules/proposed/s72303/ajames121103.htm

Penny stocks often have the bare minimum 300 shareholders necessary to publicly trade and these shareholders believe the value of the penny company is going up. These stocks are therefore illiquid and trade inefficiently, e.g., a few low volume trades can turn a penny stock into a dollar stock while a few other trades can do the reverse. Even if retail investors were permitted by the OTC and Pinks to short penny stock, most would not because of significant risks if the penny stock follows its natural bias upward caused by its pool of “true believer” shareholders. Naked short selling provides virtual (i.e. “counterfeit”) shares to the market place to avoid day to day panic buying. There are always enough counterfeit shares to keep the penny stock low.

At some point, market makers and broker dealers can become so locked into their naked short positions that they simply cannot afford to let the underlying stock rise. The market makers and broker dealers prolonged dissipation of buying energy for promising penny stocks through the sale of counterfeit shares leads to the collection of a large pool of customers’ purchase money for the shares, double or triple the outstanding shares of the underlying company in customer accounts, a paper credit to the customers’ statements for the nonexistent shares, and an incentive to either drive the underlying company out of business or repeatedly over time drive the underlying stock up on low volume and then plunge the underlying stock on large volume to cover the naked short positions, i.e., a process to actually free up and deliver real underlying shares to the customers who cannot be shaken loose. By trading in a circle, market makers and broker dealers can create the illusion of volume on the upside. All this can be accomplished without interference from the DTCC.

Since market makers and broker dealers control the market price, to shake off the naked shorts, the underlying company is force to sell out (probably to a potential competitor seeking to acquire the disruptive technology), to delist to the pink sheets to avoid centralized OTCBB/ DTCC clearing thereby making naked short selling more inefficient and more dangerous, to go private forcing all naked shorts out, or to give these market manipulators significant time to unwind their naked short position during which the underlying company is unable to obtain additional financing or is tempted to accept death spiral financing, particularly when management is more interest in continuation of their pay than appreciation of their stock. However, each of the alternatives requires that the penny company actually be valuable and have some residual strength.

According to Paul Harrison of the Federal Reserve Board, short selling and naked short selling have been around for 400 years - at least. (See Reference 7) Given such longevity, this writer is willing to accept that short selling has some efficacy. But when one broker can sell 162% of a company’s outstanding shares and still maintain a “flat” position, it doesn’t take other brokers long to follow and dilute the outstanding shares by a factor of 3 or more. As a famous wag once said, “You got to keep the game honest enough for the suckers to play.” The market place has reached that point, and through the internet, we suckers finally have a sense of what is really going on. The SEC must cap, track, and audit short selling to realize its perceived benefits without permitting the continued selling of air to investors as was historically the case.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/23/2006 9:24 AM
I like simple solutions the best myself.
If the dtcc RUNS OUT OF CERTS it's a problem for them.
If we all take that little bit we own in the name of cede and company and instead make it REALLY ours this can't go on.
ORDER YOUR CERTS
Change every account you own to reflect true ownership in a real company.
I am in the process of dumping every bond fund and money market fund and every other name fund my employer retirement 401k and profit sharing plan has in it and having that money instead put in a retirement account of real held in my name stocks.
I have s sneaking supposition that the money in these funds may have been the money in use by certain partys to manipulate stocks , NOT NOW.
PEOPLE WE HAVE THE POWER.
STOP THE DTCC
Think how to get control of YOUR money back .If you allow someone else to control it you have lost it.How do you think it got this bad?
The media and wall street have all worked well together to convince us we are just stupid and don't get it. We didnt get it allright, we didn't get what we paid for and the word is out.
Make them pay.If all our resources are converted to owner registered certs the covering will HAVE to happen and the dtcc will be over.
Order certs in everything you have.
It's the simplest solution.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By whatajoke on 10/23/2006 9:32 AM
Notice that according to these comments, the broker who shorts OTC stocks keeps it all internal and reports it as flat by naked shorting to their own customers.

Does the SEC even know what is going on at brokerages that may or not even be under SEC jurisdiction?
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By selene on 10/23/2006 9:52 AM
May day was 1975

Selene
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By ginger on 10/23/2006 10:01 AM
bbhindyou,

that's what CMKX did... pull their certs. They had a cutoff date of May 16th 2006 but still many certs haven't been delivered; they're still trickling in from the brokers... even today 15 new certs arrived.

http://www.cmkmtaskforce.com/
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By cede on 10/23/2006 10:08 AM
These guys say Cede & co assets are pledged.

http://www.monetaryportfolio.com/i_specialReports_01b.asp

A greater consideration is just exactly who does the DTC hold these securities for? As the owner, who has the DTC pledged these securities to? Our research points to the Federal Reserve System, an international private banking cartel with major offices found in Moscow, London, Tokyo, and Peking. By treaty with the United Nations and in compliance with the Bretton Woods Agreement, the DTC under regulation of the Federal Reserve System has pledged all those stocks and bonds to the International Monetary Fund (IMF). These are the same paper securities found in your IRA and pension fund accounts, as well as in your brokerage account. Remember, you don't own them.... you're just a beneficiary.

The truth is, the securities you purchased and paid for with your hard earned money is collateral for the United Nations which is backed by the Federal Reserve System and it's associated agencies, such as the International Monetary Fund.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/23/2006 10:13 AM
Ginger it can't be just one penny stock it has to be across the board ,big name stocks that we need to be exposing as undeliverable or the story told will be that the little scam deserved it.
Unless some major find on claims held by the cmkx dividend company etgmf come in I don't see any way for cmkx stockholders to make any difference in this even if the stock had been heavily naked shorted because the claim will be it was a company that 'deserved it'.
We need to show the whole market is compromised not just some fringe stock.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By ginger on 10/23/2006 10:40 AM
bbhind...

you mean "across the board" on the US exchanges onl... not the Toronto Exchange.
get better dude. i always fear what might happen if you were to just disappear one day... By newspaper on 10/23/2006 12:07 PM
You are too important to the cause. No more fishing for you.

you guys read about sssu? again tdameritrade wont let people buy that stock. how can they get away with that over and over again? anyone remember the link to the Investor Hub message baord that talks about the ameritrade no buy list?
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By yoda on 10/23/2006 1:17 PM
pathchie,

you are exactly right...I would add a staggered rotation of directors at least 7 from the states added by lottory (so the bad guys won't know who is next) with a term of about 5 years or less.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By report on 10/23/2006 1:26 PM
Report for congress.

http://www.opencrs.com/rpts/RS22099_20050330.pdf
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By what next on 10/23/2006 6:51 PM
"There is no question that Mrs. Hevesi suffers from debilitating illnesses ... but state employees may not use public resources to care for their loved ones.

http://seattlepi.nwsource.com/national/1110AP_Ethics_Chauffeur.html
sec halts cshd and accuses the ceo of being a liar. By newspaper on 10/24/2006 7:04 AM
The sec finally halted cshd. Look at the reasons for the halt. They halted it not for all the naked shorting or the huge share imbalances or the inability to buy this stock from ameritrade. They halted it because they think the Ceo might be a liar or dirty. But the 100million naked counterfeit shorts don’t even warrant a mention.

http://www.sec.gov/litigation/suspensions/2006/34-54645.pdf
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Kuma on 10/24/2006 7:23 AM
Brokers restricted trades link
http://www.investorshub.com/boards/board.asp?board_id=6401

Nobo list link
http://www.investorshub.com/boards/board.asp?board_id=4365
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/24/2006 8:27 AM
We know the sec and dtcc are liars AND dirty , why aren't they shut down?
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By FreddoCazzo on 10/24/2006 9:38 AM
"I keep printing up and distributing folders of shame. Anybody else out there willing to look like a loony tune?I don't care if they look at me crosswise the folders are being REQUESTED by local people now and some of them get it.It has cost me a lot of paper and time but I think it's working.Getting people to belive this version and not the 'it's a small problem and not important to you 'official party line has not been easy.I will be running the printer later today how about some help?"

I am allllll about it bbhindyou........How can we get together. I would love to spread some flyers around downtown Manhattan, and Brooklyn!

FC,CF
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/24/2006 10:13 AM
freddo vectoring works best from starting small centers in diverse locations and having those you 'convert' spread the same message through their network.
I print up folders containing the N CANS letter ,the primer on naked shorting and the Bud Burrel blog on the rules on the borrowing of securitys to short securitys.
Other information that will get attention should be included as it is made available.The new york times having articles out for instance.
I print up these folders ask the people who receive them to read it ,get involved ,read the sanity check ,sign the folder and pass them on to someone they know who will be interested in doing the same.
I have started to have people pass folders to ME that I didn't make and around here the outrage level is getting higher.
Lets see if it will catch on in YOUR area.
P.S it feels good to get around the media blackout with my personal printing press but do we have anyone who could do this on a larger scale?
I find the process of putting the problem [the naked shorting primer] and the solution [the ncans letter] all in one folder seems to get more people to be really interested than just telling people to visit the sanitycheck.
I hear the local high school is looking into making this a civics project here.
HEE HEE HEE dtcc don't you just love me!
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By old duffer on 10/24/2006 10:18 AM
is there any way to force your broker with a IRA account to get real shares into your accounts?

TIA for any help!
question. By newspaper on 10/24/2006 2:54 PM
Anyone know how many stocks have been on SHO since it came into existence?

Is this public information? Even if a stock went on SHO for just 1 day I am curious how many unique companies made it there. To me it looks something like 6000 different companies made it there since inception.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By hackers in trouble now on 10/24/2006 4:10 PM
The government has launched investigations into fraud cases in which computer hackers apparently manipulated client accounts at two of the nation's largest electronic brokerages, stealing millions of dollars.

http://www.forbes.com/home/feeds/ap/2006/10/24/ap3117054.html
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Designed for a Reason on 10/24/2006 4:51 PM
The DTCC is owned by the BROKERAGE HOUSES and was designed for one reason and one reason only.

TO MAXIMIZED PROFITS FOR THE OWNERS and to hell with anyone else!
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By FreddoCazzo on 10/24/2006 4:53 PM
bbhindyou......I am with you all the way....I am trying to team up with viral also....and I would appreciate your ideas, your folders/templates, and your ideas.....Thank you.

email me at: emailmorewords@gmail.com

please and thank you.....FC,CF
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By GaryWeissIsA_Worm on 10/24/2006 5:33 PM
self administeredmreal estate IRA. let's see them counterfeit real property titles. Also, hard to counterfeit if you already have a tenet in a rental property

alternatively, i suggest bullion coins are a good vehicle to save for retirement.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bobo on 10/24/2006 6:21 PM
The spin is kind of funny on the computer hackers. Note that it includes lots of rhetoric about pump and dump, but they just can't bring themselves to even utter the words short selling in the manipulation discussion.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Mosses on 10/24/2006 7:05 PM
U.S. Launches Probes Into Fraud Cases
By JOSH FUNK 10.24.06, 6:08 PM ET

The government has launched investigations into fraud cases in which computer hackers apparently manipulated client accounts at two of the nation's largest electronic brokerages, stealing millions of dollars.

Officials at TD Ameritrade Holding Corp. (nasdaq: AMTD - news - people ) said Tuesday that the fraud cost the company about $4 million in the July-September quarter. Last week, E-Trade Financial Corp. said the company lost about $18 million in a similar scheme during its third quarter.

Both companies reimbursed customers for their losses.

Ameritrade's chief operating officer, Randy MacDonald, said the fraud that his company experienced during the quarter was part of an industrywide problem and that the company was working with the FBI and other law enforcement agencies.

Ameritrade officials said the problem largely occurred overseas when clients were using either wireless networks or public computers infected with spyware, and user IDs and passwords were stolen.

"We're spending a lot of time educating our clients about the need to keep their information secure," MacDonald said. "And we're working with software vendors to develop new techniques for preventing this from even happening at their keyboard level."

Officials at Omaha-based Ameritrade and E-Trade, which is headquartered in New York, said that while hackers manipulated individual accounts, their own computer systems remained secure.

E-Trade Chief Executive Mitchell Caplan told analysts during a conference call last week that the fraud his company saw appeared to be concentrated in eastern Europe and Thailand, according to a transcript provided by Thomson Financial's StreetEvents.

"We believe that we've made a significant number of operational changes and technology changes," Caplan said during the call. "We've seen that level of fraud in the last three weeks or so reduced to almost zero as a result of the changes we're making."

Both E-Trade and Ameritrade have insurance that may cover some of their fraud losses. They reimbursed their clients because both companies offer their clients asset protection guarantees.

The Securities and Exchange Commission, like the FBI, is investigating hacking fraud throughout the online brokerage industry.

SEC spokesman John Heine in Washington declined comment Tuesday on the Ameritrade and E-Trade cases.

Officials of the SEC and other law enforcement agencies, along with representatives of online brokerage firms, were meeting Wednesday to discuss the issue, said John Reed Stark, head of the SEC's Office of Internet Enforcement.

"We've seen an increase in the number of intrusions," Stark said. "These innovative frauds often involve an intricate web of participants that are not only committing securities fraud but are also committing identity theft and hacking as well."

Ameritrade's chief executive, Joe Moglia, said he thinks this latest rash of fraud and identity theft is under control, but it's a problem the industry and society will always have to contend with.

"From the beginning of time, there's always been someone trying to take advantage of someone else," Moglia said.


Associated Press Writer Marcy Gordon contributed to this report from Washington D.C.


Copyright 2006 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed
cshd just gave an amazing radio interview By newspaper on 10/24/2006 8:08 PM
he is proclaiming his innocence. He is going to try and fight the sec. he wants a congressional committee to investigate the corrupt sec. the interviewer on the radio could have been a clone of Herb or GW because his argument was basically shorts are American heroes and pump and dumps are ever present and evil and we need to be protected from them and from you Rufus. He was trying to bash Rufus down and Rufus ripped the basher interviewer to shreds by talking about naked shorts and the corrupt SEC.
this might get very interesting!
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Freefalling on 10/25/2006 1:48 AM
TheStreet.com Adds Stock Ratings to Its Free Services
Monday October 23, 9:55 am ET
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By gregcable2002 on 10/25/2006 6:16 AM
I can see the next headlines now,Eastern Europeans hack broker dealers computors and flood our markets with Naked Short Shares.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By clearthinker on 10/25/2006 6:46 AM
Headlines? Even if the government cleans this up, you can bet it will be a stealth job, They will try to keep the public ignorant of the problem. Too much complacency took place....and they know it. The best we can hope for is that they fix the problem...don't hold your breath that the public ev er finds out there really was one....
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By gregcable2002 on 10/25/2006 7:38 AM
clearthinker,you underestimate the general pubic,I'm the general public and we are growing in numbers by the day,more and more everyday people are getting informed by blogs such as this one,just look how far this issue has come in the two years that I've been around,I remember when the party line was the NSS issue didn't even exsist.The truth will win out in the end,defining a timetable for the end is the trick.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Chain Gang on 10/25/2006 8:34 AM
I recently received an email of about 150 names asking that I add my name to the list in support of the platform they endorsed, (medical coverage), and email it to people I know and whoever becomes number 500 is to send it in, in our case that might be to the Justice Department.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By mhatmccane on 10/22/2006 7:48 PM
I could not find the comment letter you referenced at the SEC comment letter site. Is
it an earlier letter? Do you have a date on it?

Thank you
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By CMElec on 10/22/2006 8:04 PM
Sep. 14, 2006 Andrew and David Wilkes, Portfolio Manager
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By low IQ people in charge on 10/22/2006 8:09 PM
Not sure why lil gw would want to front the bad guys against the angry mob. Sign of a low intelligence.

These links are off topic, but they also aren't. The banksters that control the federal reserve also control the stock market and they control other aspects of our democracy.

"The five Big TV Networks cover the same major stories EVERYDAY -- and they ALL cover these chosen "major stories" from EXACTLY the same angle EVERYDAY."

"In other words, the FED banksters can arrange that member banks make extremely large loans to their chosen "capitalists", i.e. tens of millions or hundreds of millions of dollars, with which businessmen can then attempt to takeover whole industries. If they fail, the loans can be written off to the American people."

"in 1987 there were 18,000 family and regionally owned office supply companies. Then in 1987-1988 three companies sprang out of nowhere with unlimited credit to establish stores in every region of the country: Office Max, Office Depot, and Staples. By 1997, there were only 4000 family and regionally owned businesses left. It's not fair when one faction has a MONOPOLY on all the issuing of money."

http://www.votefraud.org/election2000_scam.htm

"In "Black Money" a government investigator investigating S&L fraud starts to look into the revenues and expenses of a fast food chain, which is experiencing far more deposits from sales than it is selling pizzas. As Thomas walks you through a handful of the near infinite number of possible money laundering schemes known to mankind, you start to get a sense for some of the economics of fast food franchises that have nothing to do with feeding people."

"The problems this presents to people trying to run an honest business are numerous. The problems it creates for our work ethic and culture are numerous too. It increasingly puts the low performance people in charge, and everyone starts to behave like and follow them."

http://www.narconews.com/narcodollars3.html
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By buyins on 10/22/2006 8:20 PM
The buyins thing is a joke. How about a fine of ten times the value of the trade each time you fail delivery? Paid to the buyer you were trying to rip off.

Within 24 hours, trades would never fail.

As for the NSCC buy in - because of netting THEY ARE THE ONES THAT NEED TO BE BOUGHT IN. They are the ones that need to be fined ten times the value of the trade.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By oldfeller on 10/22/2006 9:58 PM
What blows my increasingly feeble mind is how few of our elected representatives will speak out. I have to give them the benefit of doubt that stupidity rather than complicity is responsible for their silence.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Edgar on 10/23/2006 4:31 AM
New format for SEC data to boost investor access

October 9, 2006
BY TERRY SAVAGE Sun-Times Columnist
The Securities and Exchange Commission is creating a new financial "language" that is designed to provide individual investors with an advantage previously available only to securities analysts and huge firms. Coming soon: All corporations will report their financial information in a format called XBRL. You don't have to understand the technology to reap the benefits.



This new reporting format will make all data interactive. That means anyone can go online and easily find and make comparisons of all the data that's been filed -- including financial reports, footnotes and management's discussion of the company's prospects.

http://www.suntimes.com/business/savage/88737,CST-FIN-terry09.savagearticle
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By SteveM on 10/23/2006 4:41 AM
OK, Old Feller. Then we must conclude that either we have voted for the stupidest government possible, or they are all criminals. There doesn't appear to be any third choice.
Maybe they are 60% stupid and 40% criminal...

VOTE OUT ALL INCUMBENTS. End the status quo.
Don't vote for the heavily marketed candidate.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By gregcable2002 on 10/23/2006 4:43 AM
Just like the text books in our collages are written on a 8th grade level so to do our elected officials run campainges on a 8th grade level or lower.Thats why we'll never see anyone running for office touch this subject of the stock market.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/23/2006 4:46 AM
There is no doubt that guilt not stupidity keeps most politicians mouths shut on this issue.Stupidity HAS something to do with it but its our stupidity not theirs.
WHEN WILL WE LEARN TO VOTE FOR THE PERSON WHO WILL HELP US NOT THE GUY WITH THE MOST MONEY [clearly prebought] TO SPEND ON ELECTION HOOPLA.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By gregcable2002 on 10/23/2006 4:51 AM
Next time you see a ad for a person trying to get elected ask yourself who they are targeting.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By gregcable2002 on 10/23/2006 4:58 AM
bbhindyou,it's We The People who are to blame,we've become fat and lazy over concerns of our government and we are going to pay big time for it.Is it to late to turn things around? God only knows,one thing for sure is we who see need to fight on,I for one think we can win in the long run.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Greed Is Good on 10/23/2006 5:03 AM
Gluttons At The Gate
...
"Taken together, these trends serve as a warning that the private-equity business has entered a historic period of excess. "It feels a lot like 1999 in venture capital," says Steven N. Kaplan, finance professor at the University of Chicago. Indeed, it shares elements of both the late-1990s VC craze, in which too much money flooded into investment managers' hands, as well as the 1980s buyout binge, in which swaggering dealmakers hunted bigger and bigger prey. But the fast money--and the increasingly creative ways of getting it--set this era apart. "The deal environment is as frothy as I've ever seen it," says Michael Madden, managing partner of private equity firm BlackEagle Partners Inc. "There are still opportunities to make good returns, but you have to have a special angle to achieve them.""

http://news.yahoo.com/s/bw/20061020/bs_bw/b4007001
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bbhindyou on 10/23/2006 5:10 AM
I keep printing up and distributing folders of shame. Anybody else out there willing to look like a loony tune?I don't care if they look at me crosswise the folders are being REQUESTED by local people now and some of them get it.It has cost me a lot of paper and time but I think it's working.Getting people to belive this version and not the 'it's a small problem and not important to you 'official party line has not been easy.I will be running the printer later today how about some help?
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By mhelburn on 10/23/2006 5:19 AM
The SEC has allowed rules that make it more difficult to enforce the laws. Why would anyone do that? I have to agree with the thread here of stupidity or criminality in the officials.

The SRO's can't enforce themselves because of the conflict of interest. The regulators depend on the SRO's for leads. Individuals within the regulators are co-opted and expect a payoff from those they regulate when they go to work for the industry. One can't really tell when the job change happens, except the new hire begins to tout that the behavior he had at the SEC is not only acceptable, but desirable when we recognize it as criminial.

Naked shorting and the market maker exemption disquise irregular trading patterns that would make it easy to recognize criminal conduct. There was no consideration for how these rules void legitimate oversight.

Secondly, when did the SEC give up their role as enforcer and bring in the vigilante shorts who have used both legal and illegal shorting to "punish" scam companies. These criminals are no better than the scam companies, but just add another layer of criminality to deal with.

Two wrongs don't make a right.

We need to change the way we fund elections so that influence peddling becomes non-existant and our elected officials are not beholding to special interests. We also have to make it illegal for someone to go to work for a party for whom they had regulatory oversight while in office.

The scandals coming out of Congress, the 94 days they work annually while accomplishing little, the priorties of being re-elcected overriding the reason the reps were sent to office are all symtomatic of a morally corrupt system filled with self-serving individuals. Good people get frustrated and can't get the co-operation they need to do the job.
Re: FinCEN Needs to Investigate By Willie Loman on 10/23/2006 6:04 AM
When will the Financial Crimes Enforcement Network (“FinCEN”) come to regard the ongoing rape of retail investors as the act of money laundering that it is?

http://www.metrocorpcounsel.com/current.php?artType=view&artMonth=October&artYear=2006&EntryNo=5702
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Stab From The Past on 10/23/2006 6:57 AM
Is anybody else amazed at the ability of these people to reinvent themselves.
What I want to know is how come they didn't lose everything after all their bad calls?

Gross predicts Dow 5,000
Influential Pimco bond manager sees stocks moving lower before recovery begins.
September 6, 2002: 5:10 PM EDT


NEW YORK (CNN/Money) - The manager of the world's biggest bond mutual fund predicts the Dow Jones industrial average could fall another 40 percent to 5,000 because the stock market remains stubbornly expensive despite a more than two-year decline.

Bill Gross, who manages the $6.2 billion Pimco Total Return fund, expects stocks to keep falling until the stock market's yield rises enough to make shares attractive relative to bonds.

"The market needs to yield close to 3.5 percent before it approaches fair value, and that means Dow 5,000," Gross wrote in his monthly commentary.

http://money.cnn.com/2002/09/06/markets/pimco/
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By seattle on 10/23/2006 7:15 AM
http://seattletimes.nwsource.com/html/businesstechnology/2003316307_housekeeping22.html
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By davidn on 10/23/2006 7:26 AM
http://www.marketwire.com/mw/release_html_b1?release_id=175070

There's a lot of misunderstanding of how the clearance system works. He says "our transfer agent's DTC list" which is not correct.

1. The transfer agent has a list of the actual registered owners. One of those registered owners is a private partnership, Cede & Co. This is referenced as the DTC's nominee, although Cede & Co. and the assets don't show up in their annual report. Cede & Co. has been around at least since 1971, predating the current clearance system.

2. The DTC creates a "security position report" specifying which participants, typically clearing brokerages and depositories, have claims on Cede & Co.'s shares.

3. Those clearing brokerages keep track of which introducing brokerages have claims on those shares and those introducing brokerages keep track of which customers have claims on those shares. These various lists of claims are in various jurisdictions.

4. The NOBO list ADP creates is created on the honor system by the subset of brokerages that use their services. It is an incomplete list as it consists only of the shareholders who want annual reports and other materials from the company.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By davidn on 10/23/2006 7:30 AM
Bottom line:

Investors registered on the company shareholder list and Cede & Co. are "shareholders".

Everyone else are "claimholders".

Claimholders have a claim on a share by virtue of a contract with their brokerage. The brokerage has a claim on a share held by the clearing brokerage. The clearing brokerage has a claim on a share held by a depository. The depository has a claim on a share owned by Cede & Co., the actual shareholder.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By bobo on 10/23/2006 7:36 AM
Willie: Don't hole your breath. Do you really believe that the powers that be don't have a very clear idea of how the hedge funds are a second-tier banking system for the super rich to evade all rules and regulations? How do you think all the drug money moves around? Terrorist funding? Arms bucks? You think they are doing wire transfers and writing checks, or swapping derivatives between hedge funds in a completely unregulated manner? FINCEN is in place to keep the guy with a few mil from getting his cash out of the country. What it doesn't do is stop hundreds of billions of drug money from moving around the globe.

Or did I miss where there is no more drug trade now that FINCEN shut it down so effectively?
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Patchie on 10/23/2006 7:40 AM
The New York Times article says it all.

“the file shows that after Mr. Aguirre was blocked from questioning Mr. Mack about the Heller deal, Mr. Hanson, the S.E.C. branch chief, acknowledged in e-mail messages that he had discussed Mr. Mack’s “political clout” and the “juice” of his lawyers with officials at the commission.”

What more needs to be said. Wall Street Executives become rich stealing your money. They steal enough to hire the best lawyers and politicians. They are no free to commit any crime of their choosing because they have paid off any challengers. Politicians and Lawyers are fixing "Wall Street parking tickets" for the criminals and your Federal Government are the ones that are taking the bribes in the fix.

For teh safety of our capital markets, the push should be to have a single regulatory agency oversee the markets but not at the Federal level but the state level. The SEC Commission staff and directors should be replaced by representative of the state regulatory agencies (NASAA). The Feds can still fund the agency they just need to keep their hands out of this cookie jar when it comes to enforcing crimes.
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By Willie Loman on 10/23/2006 8:10 AM
Bobo: that is probably so ... :-( ... but if enough "independent" agencies are forced to focus on the problem of naked shorting, they can't keep dissembling about it forever. And the stakes would be huge. Imagine the size and scope of the penalty actions Treasury could bring, if FinCEN would only turn its "big" pattern-recognition guns towards the brokerage industry's machinations. Thar's enough gold in them thar hills (treble damages etc) to wipe out the federal deficit overnight (or is it NITE)...
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By troydian on 10/23/2006 8:12 AM
According to Paul Harrison of the Federal Reserve Board, short selling and naked short selling have been around for 400 years - at least. (See Reference 7) Given such longevity, this writer is willing to accept that short selling has some efficacy. But when one broker can sell 162% of a company’s outstanding shares and still maintain a “flat” position, it doesn’t take other brokers long to follow and dilute the outstanding shares by a factor of 3 or more. As a famous wag once said, “You got to keep the game honest enough for the suckers to play.” The market place has reached that point, and through the internet, we suckers finally have a sense of what is really going on. The SEC must cap, track, and audit short selling to realize its perceived benefits without permitting the continued selling of air to investors as was historically the case. http://www.sec.gov/rules/proposed/s72303/ajames121103.htm
Re: "SEC Cover-Up" Enters Popular Lexicon; Great Article Exposes Systemic Rot; Comment Letter Bombshell; 'lilGW Guilty Dog By whatajoke on 10/23/2006 9:18 AM
Naked short selling of OTC stocks goes one step further by waiving the pretense of borrowing shares as part of a short sale. A broker dealer member sells a share to its customer that does not exist - an artificial or “virtual” share. (See Reference 5 below) A broker member keeps the customer’s purchase money while “crediting” the customers account with the intent, in the future, to actually deliver a real share. The broker member then has a “flat” position described above of one share in a customer account and one virtual share short, and no interaction with marketplace through “broker internalization” and no delivery requirement. Market liquidity and efficiency are enhanced by this procedure since customers can continue to “buy and sell” closely held and illiquid shares through virtual shares. Moreover, when liquidity isn’t readily available, wholesale market makers can step forward to do what an ECN can’t do - take risks (i.e., naked short) on behalf of their clients.

(See Broker/Dealer Internalization: http://www.knight?sec.com/How_the_Trade_Gets_Done/HowStock.asp)

Since members and exchanges, but not the SEC (See Reference 6 below), prohibit retail customers from shorting a stock with a price under $5, almost all naked shorting is done by brokers dealers and/or market makers who make a profit by actually buying the previously credited share, with the customer’s purchase money, in the marketplace once the price has dropped. Because of the dilution caused by naked short selling, the long term price trend for most OTC stocks is down. However, to hedge their naked short positions, the broker dealers, market makers and exchanges permit hedge funds, institutional investors, and foreign investors to add through regular shorting procedures to the members’ naked short positions with a 50% margin further protecting the entire pool of naked short positions. Foreign investors’ short sales can be facilitated through the NASDAQ London office and U.S. market makers having London satellite offices. In the less usual case where an OTC stock price begins to rise, the broker dealers and market makers can clear their naked short naked positions first and before too much upward momentum is built by artificially controlling the bid and the ask.

Justifications offered for naked short selling are liquidity and efficiency. Currently, naked shorting achieves both objectives since the sale of non-existent shares is profitable and unlimited with bankruptcy of the target company the preferred result. However, the enrichment of a few by destroying promising U.S. companies is obscene and supports offshore money laundering, drug running, terrorism and organized crime world wide. It is one thing to let air out of a stock and quite another to destroy it with the aforementioned consequences.

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