http://investigatethesec.com/drupal-5.5/files/Senators Dear Colleague Letter re NSS_20091014.pdf

http://www.opensecrets.org/pres08/contrib.php?id=N00009638&cycle=2008

http://latimesblogs.latimes.com/washington/2009/10/obama-raises-money-for-dems-in-ny-among-wall-streeters-he-slams-for-bonuses-an-optics-problem.html

On air and online October 20, 2009 at 9:00pm

http://www.pbs.org/frontline/warning

Sifting the ashes of the financial meltdown, Kirk finds a lawyer named Brooksley Born, who, from her perch at the little-known Commodities Futures Trading Commission, tried to convince the country’s key economic power players to do something which may have helped avert the financial crisis: regulate the increasingly high-risk financial instruments called “derivatives.”

Here is another link to a story airing TONIGHT…

— The Warning – On air and online October 20, 2009 at 9:00pm

——–( http://www.pbs.org/frontline/warning

The must see story that veteran producer / director Michael Kirk (Inside the Meltdown, Breaking the Bank) reports in this Tuesday night’s FRONTLINE is both riveting, illuminating and the perfect follow through for Michael Moore’s Capitalism / A Love Story ~ for Michael never really gets his questions answered about Derivatives.

Sifting the ashes of the financial meltdown, Kirk finds a lawyer named Brooksley Born, who, from her perch at the little-known Commodities Futures Trading Commission, tried to convince the country’s key economic power players to do something which may have helped avert the financial crisis: regulate the increasingly high-risk financial instruments called “derivatives.”

“They were totally opposed to it,” Born says of the fierce resistance to regulation she met from Alan Greenspan, Robert Rubin, and the other members of President Clinton’s “working group” ~ a highly influential and secretive body that determined the country’s economic policy. In her first television interview, Born tells FRONTLINE that she was “puzzled” by the opposition she faced in Washington. “What was it that was in this market that had to be hidden?”

Excerpt:

The Warning / On air and online October 20, 2009 at 9:00pm
http://www.pbs.org/frontline/warning

” Born’s battle behind closed doors was epic, Kirk finds. The members of the President’s Working Group vehemently opposed regulation ~ especially when proposed by a Washington outsider like Born.

“I walk into Brooksley’s office one day; the blood has drained from her face,” says Michael Greenberger, a former top official at the CFTC who worked closely with Born. “She’s hanging up the telephone; she says to me: ‘That was [former Assistant Treasury Secretary] Larry Summers. He says, “You’re going to cause the worst financial crisis since the end of World War II.”… [He says he has] 13 bankers in his office who informed him of this. Stop, right away. No more.’”

Greenspan, Rubin and Summers ultimately prevailed on Congress to stop Born and limit future regulation of derivatives. “Born faced a formidable struggle pushing for regulation at a time when the stock market was booming,” Kirk says. “Alan Greenspan was the maestro, and both parties in Washington were united in a belief that the markets would take care of themselves.” Now, with many of the same men who shut down Born in key positions in the Obama administration, The Warning reveals the complicated politics that led to this crisis and what it may say about current attempts to prevent the next one. ”

http://www.pbs.org/wgbh/pages/frontline/warning/?utm_campaign=Various&;utm_medium=Bulletin&utm_source=Main

http://blogs.salon.com/0002255/2009/10/19.html

The 98% that don’t sue get their money back from their brokerage. “Sorry, it turned out you didn’t buy a real share. That seller screwed you. We’ll give you your money back at your purchase price, even though the stock has gone down 99.9999999%”

Too me, a huge scam is when companies are delisted, the brokerages typically remove the shares from your trading account as having no value. Who gives them that right? What if I own 51%? Can my broker steal those shares from me? What if I wanted to use my controlling stake to merge with a company that is good?

Too me, even a scam company has a lot of value if it has a lot of IOU’s. What if the scam company shell bought something with real value and forced the IOU’s to be honored?

The reason this persists is that it is cross jurisdictional. If you sue in California, you won’t get records from Malaysia or Berlin because the court doesn’t have jurisdiction. Discovery will only ever get you a partial picture to what is actually going on.

In my mind, there is too much focus on the action, the verb, the naked shorting.

What about the passive custodial activity. If the states / Feds. started arresting custodians that committed mail fraud by sending statements that implied shares were in safekeeping when they weren’t, then this activity would cease.

This isn’t like fractional reserve banking. Depositories, clearing brokerages and introducing brokerages should be required to own the shares they tell their customers they have in trust. If they don’t own them, it is fraud.

U.S. Plans to Charge 10 More After Rajaratnam Arrest
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By Joshua Gallu and David Scheer

Oct. 19 (Bloomberg) — Federal investigators plan to charge at least 10 securities professionals with insider trading, some linked to the criminal case against billionaire hedge-fund manager Raj Rajaratnam that shook Wall Street last week, people familiar with the matter said.

“The pending crackdown, more than two years in the making and among the biggest undercover operations into insider trading, may yield charges against hedge-fund managers and their associates as early as this week, the people said, declining to be identified because the cases aren’t public. Authorities had planned to arrest Rajaratnam this week as part of a broader sweep, expediting it after learning he had bought a plane ticket to travel to London on Oct. 16, one person said.”

Now if and only if one or more of these Hedge Fund managers are the same ones that shorted DNDN that Mark announced in the DNDN saga this will be for real. I want Chanos, Einhorn, Paulsen,Cohen just to name a few on the firing squad. But its a start.

I don’t get it. If I don’t get what I am entitled to, I will sue the broker. How can they convince a court that they don’t have to give me those shares?

By Joshua Gallu and David Scheer
http://www.bloomberg.com/apps/news?pid=20601103&sid=a1fb2.emSyh4#

“To overcome that hurdle, the SEC began using computer software about two years ago to sift hundreds of millions of electronic trading records, known as blue sheets, attached to the stock exchange reports about suspicious incidents, according to people familiar with the project. By looking for patterns in the library of data, they identified groups of traders who repeatedly made similar well-timed bets. ”

I am assuming if this secret mission by the SEC started 2 years ago then the findings on who took down BS and Leh should be readily accessible for immediate prosecution ?