hedge’s need to disclose their short positions.

Why they weren’t allowed to is CRIMINAL.

Sounds like bribes exchanged to politicians.

They should be required to do the same thing for a SELL order. You need to have the security in the account in order to submit the sell. You may have obtained the security by borrowing it (as in the margin account long example).

This is a fair market. Equal for buyer and seller. All participants should be required to follow that standard.

http://aaronmorgangroup.typepad.com/aaron_morgan_group_blog/

So many criminal conspirators to catch . . . it’s time.

dzimmer@aaronmorgangroup.com

I am mostly libertarian, but I recognize critical services, such as police and roads need to be owned by the people.

The people need to make sure there is a road network that allows for the efficient transportation of goods and services.

What if banking were wholesaled by the government, so that buying and selling of goods and services could also be done efficiently.

Private banks would act as the middle men, providing the buildings, paperwork and loan guarantees (they pay back loans that go bad) and you pay them a fee to insure your loan and deal with the paperwork, appraisals, etc.

- the government bank would have infinite money to lend and because of the retail bank’s role as guarantor, every loan would be repaid in full. The private retail banks would still charge based on credit worthiness and limit loans to ability to repay

- because money could be created without interest, there would be no monetary inflation

- the government could pay for its bills by just spending government bank money which they create out of thin air. The value of money would go up or down if they spent too little or too much, but there would be no such thing as government debt.

- there would be no tax at any level of government

- all deposits would be pushed from the retail banks to be held at the government bank

Just is in the current system, there would need to be checks and balances to control government spending (otherwise the spending would lower the value of the money), but under this proposal:

- there would be no booms and busts
- the banks would always be liquid and credit always available
- no taxation
- no government debt
- low unemployment
- deposits 100% guaranteed

The system would still be capitalistic, but society would be creating money out of thin air instead of the private banks doing it.

They shorted the stocks, somehow got
“interest on the money” which they used
to by CALL options to protected themselves
if the stock (for some reason went up).

Late afternoon they would call the other
heavy hitters and attack one or two stocks
… drive it down, down, down … then
at some point… let the Call Options go
(most options are never executed) …
cover the short at the low price… and
back the truck up to the door and
shovel the money in.

Getting rid of the uptick rule … has not
helped the current situation either.

All I can say is… Not Good!

Being able to Naked Short a stock is
ridiculous … great for Hedge Funds
and Market Makers … but no one else.
Theorectically you could short 10 Million
shares of a stock that only has 1 Million
shares outstanding. What is that
all about?

Thank you

And, does anyone have any problem with
Market Makers… ie Goldman, Morgan,
USB, Credit Swiss… “trading for their
own accounts now” … it use to also
be illegal. Now they make almost 1/2
their profits this way. Where is everyone?

Judd, I know you’re busy, but more podcasts would be an excellent way to help spread the word to more people. I know that events seem to be evolving on nearly a daily basis, but this a great medium to help spread the word. If you’re too busy, enlist the help of someone else to get these things out there!

How ’bout some polished, distilled version of Patrick’s excellent Dark Side / Deep Capture presentations in two or three ten minute YouTube installments, to be promoted to the public in every way possible?

The current political climate presents a false dichotomy of “more regulation” vs. “deregulation”. Advocates of the free market do not blindly oppose all regulation; we oppose unnecessary, counter-productive regulation. We favor regulations that punish force and fraud.

In a free market, you can’t sell stolen merchandise, nor can you misrepresent what you’re selling. Naked short selling is fraud, pure and simple. It is no more a part of the free market than is the proverbial sale of the Brooklyn Bridge. Those who sold shares they did not own or legally borrow are also guilty of breach of contract.

In today’s digital world, it should be feasible for each stock exchange to maintain accurate databases of who owns how many shares of stock, who has loaned shares to others, etc. It should not be possible to sell shares that have neither been purchased nor legally borrowed. If the individual transaction logs contain a precise timestamp that establishes the time line of trades, anyone trying to game the system would be caught, even if the automated systems could not prevent the transaction from occurring. Anyone who somehow manages to “sell” shares they are not legally allowed to “sell” (without some damned good explanation as to why they thought they held more shares than they really did at the time of the sale, such as having themselves been the victim of a naked short) should forfeit the entire sale amount trebled. A second offense should also suspend their trading privileges for a month, and a third offense for life.

With respect to your DVP analysis, this was primarily a tool used within the government and municipal securities segment of clearing until recently being inappropriately employed in equities. It was more used when the actual delivery was in bearer or actual physical certificate form and literally had to be shipped from one depository to another.

You are a learned source of information and as others have stated, I appreciate your commentary. You are hitting the fringes of what transpires but we are going to need to get to the “meat” to convince Congress to take action.

I am waiting for our website to be reconstructed (or at least the blog to be formatted) to post an article I have written for delivery to several Congressional representatives and publication therein. Like you and others on this site, we are ready to roll into action with a handful of publicly traded companies on the SHO List already making contact. We need more to do so and look forward to additional emails.

dzimmer@aaronmorgangroup.com

A note of interest, the number of companies on the SHO List has decreased in recent weeks but the prices of securities have not increased and the number of shares in the phantom float has not decreased. Stay tuned and watch for the article as the illegal naked short sellers have begun to incorporate two additional illegal activities into their matrix. They can run but they cannot hide forever. This snowball is much larger than it was last week and it is beginning to roll down the hill a little faster. What needs be done is for this snowball to break into smaller snowballs, each growing and building speed towards our eventual goal. Will there be restitution, perhaps, but that is going to take years. First step, get the illegal activity to stop, then deal with the idnetification of who is responsible.

The key to eradicating abusive naked short selling crimes is education. The crime is so heinous and so pandemic that understanding it by the masses will help bring about its eradication. After 28 years of studying this discipline the most effective learning aid I’ve come up with to explain the heinous nature of abusive naked short selling is the “balance” analogy. Picture a scale or “balance” similar to the “scales of justice” you might see on a courthouse building. Let’s let the left hand tray represent the “demand” variable for the shares of a publicly-traded corporation occupied by buy orders and the right hand tray represents the “supply” of readily sellable shares plus the supply of readily sellable “securities entitlements” in that corporation’s share structure. “Securities entitlements”/IOUs/”placeholder securities” result from a seller not delivering that which he sold. Mere “securities entitlements” are treated as being readily sellable in our clearance and settlement system due to the ultra-short termed lifespan they theoretically have due to their being associated theoretically only with “legitimate” delivery failures that couldn’t quite be delivered on time; perhaps by 2 or 3 days. The relative “weights” of these two variables interact to determine the share price of the given corporation through a process known as “price discovery”.

Imagine what would happen if stock manipulators could sell nonexistent shares into the buy orders that normally fill the demand tray so as to neutralize their share price buoying effect. All DTCC participants and hedge funds have access to their own “conveyor belt” like the ones used to load and unload suitcases onto and off of airplanes. When an abusive naked short sale occurs the securities fraudster merely places his conveyor belt over the demand tray and “intercepts” that buy order before it hits the demand tray and provides its share price buoying effect. This represents manipulation #1 in which the “demand” variable that interacts with the “supply” variable has been manipulated lower by this “interception”. Note that naked short selling occurs into buy orders that surface in the market. The price buoying effect of buy orders is only realized after the buy order hits the demand tray where its “weight” can be registered. This “weight registering” was prevented in this instance. Manipulation #2 occurs when after the “interception” the naked short seller absolutely refuses to deliver that which he sold which causes that buy order to convert into a delivery failure that in turn is converted into a “securities entitlement”. This “securities entitlement”/IOU then is transported down the conveyor belt where it falls onto the “supply” tray which makes it sink downwards. The share price of any corporation is proportional to a line that can be drawn from the middle of each tray and is extrapolated to the right of the supply tray onto a grid. The higher on the grid where the extrapolated line intersects the higher will be the share price from this “price discovery” process.

Share price “manipulation” is defined as the intentional interference with the supply and demand variables that lead to “price discovery”. Both variables are simultaneously “manipulated” in abusive naked short selling crimes. That’s why the share prices often seem to fall off of a cliff. If you put this entire process into slow motion you’ll notice a very rare phenomenon. The increased demand for shares perhaps associated with record earnings just caused the share price to go down in the intermediate term instead of up. The buy order was not only neutralized but it was converted into a net negative.

Abusive naked short sellers that have ran up massive naked short positions have to collateralize these debt obligations. If the share price of a corporation that a naked short seller has ran up a massive naked short position in goes up then that naked short seller has to dig into his pocket and come up with a large amount of cash to maintain his collateral position. Some abusive naked short sellers refuse to do this and instead they crank up their conveyor belts to full speed and often they invite their buddies to bring their conveyor belts over to this corporation’s “balance” to help give it a hand in its time of distress. These abusive naked short sellers basically put a selling “blanket” over the targeted company’s shares and naked short sells into pretty much every buy order that appears. They know that eventually all waves of buying must come to an end and once it does end it can methodically “walk down” the share price via a variety of “MMMs” or “market maker manipulations”. This will allow that extra collateralization money to flow back into its wallet.

Not all conveyor belt activity is illegal. Truly bona fide MMs are allowed to address order imbalances involving buy orders dwarfing sell orders by firing up their conveyor belt and naked short selling into a moderate amount of the buy orders. When the wave of buying ends and sell orders enter the market a truly “bona fide” MM will reverse the direction of his conveyor belt and buy-in and replace the shares it failed to deliver earlier.

There is a problem, however, in our current DTCC-administered clearance and settlement system. This involves allowing the sellers of nonexistent shares to gain access to the funds of the purchasers of admittedly nonexistent (naked short sold) shares despite the fact that some abusive naked short sellers absolutely refuse to deliver that which they sold in a timely manner. In other words their conveyor belts only go in one direction and they refuse to address markets wherein sell orders dominate over buy orders as the share price drops. This is when truly bona fide MMs cover their naked short positions and deliver the shares they refused to deliver before. The foundation of nearly every clearance and settlement system on the planet (except our DTCC-administered one) absolutely forbids the seller of shares from gaining access to the funds of the purchaser UNTIL he delivers to the purchaser that which it sold him. This is referred to as “Delivery Versus Payment” or “DVP”. “DVP” mandates the use of only conveyor belts that can rotate in either direction which a certain percentage of DTCC participants refuse to utilize.

Do you think the DTC fails will out?, how do you see that playing out?

Private Equity Investment? Ownership ?

I see that NYT took great pride parking SAC_Stevie C’s ‘San Simeon’ <complete with its ice rink __ ***vague memories of $8,000 waste baskets***), The mansion looks lovely under Ivan and Mike ***the capturer becomes the prey?****….

‘capture is an unbelievable blog…..

PT

As the average American’s wealth continues to be whittled away by tumultuous markets, the rising cost of living, and the disastrous lack of leadership being displayed in the Nation’s Capitol, folks are just beginning to realize they have no idea who or what is in control of their wealth.

Many assume that the players they see and hear about on TV – like Hank Paulson, Ben Bernenke, or Alan Greenspan – work for the US Government, because that is who signed their paychecks. It is an easy mistake to make, as they look like Civil Servants in most every way: They are appointed by the President, they are confirmed by the full Congress of the United States, and they are paid with US Tax Dollars. Civil Servants then, right?

Well, no – not necessarily.

Most folks know absolutely nothing of the basic facts about how our finances are administered. They are unaware that the Federal Reserve is a privately owned company who’s shareholders are not citizens nor patriots, and who have no interest in the continued success of the United States beyond what we were able to offer them as a Super Power over the better part of the last century.

Just watch as the financial power centers are slowly shifted from the United States to the far east, particularly China, who’s system of government-controlled “free trade” has made them the fastest growing Empire in history. They don’t have to worry about what a Congress or constituents might think, no protesters to drive by, no subpoenas to dodge. Oh, and the environmental and human rights laws…

Totalitarianism geared towards textbook Fascism is a much more favorable environment for Capitalism to thrive in than is our Representative Democracy, which has outlived it’s usefulness since the development of the Multinational Conglomerate.

After years of unrestrained borrowing and spending, during which time the vast majority of our fundamental production capabilities and jobs were displaced and reestablished over-seas using subsidies provided by American tax dollars, the United States has lost it’s title as the best place in the world to keep and grow your money. We have essentially lost our AAA rating with the world. We are insolvent, and the world is running on us.

How can we tell?

How about the $700BB withdrawal they are working on for Wall Street and foreign-owned banks? How about the GSE bailout? And the record number of recent trips banks have made to the discount window – the one they opened up to gamblers (investment banks) months ago? FDIC funds for Indy Mac and others? And how many transactions like Countrywide’s $11.5BB loan from the Federal Home Loan Bank System do we know about? Or all the treasuries being auctioned to provide liquidity?

And we are still borrowing and spending – just like they keep asking us to. Aren’t you glad your Social Security is not in the stock market right now? They already talked us into 401K’s that are quickly losing their value, both in the markets and through inflation and devaluation. And they have already tricked us into taking all the equity out of our homes to finance our lifestyles, which are lavish by world-wide standards. What freedoms and advantages we enjoy in our lives are not the norm, and those freedoms and advantages are being eroded so rapidly as to be almost imperceptible.

The false confidence that we as a people collectively hold that this State of Grace that we have enjoyed and have been blessed with for so long in this country will somehow continue unabridged for perpetuity is our hubris, and now our tragedy is realized as the final chapters of our great saga reveal our fate.

The foundations for this wholesale withdrawal of our Nation’s wealth were first laid when the Federal Reserve System was developed, which will be covered in later posts. The crisis at hand today demands we look at some of the relevant parts players that are acting to subvert our Rights, our Middle Class, our National Security and the Constitution of the United States, before we get into the history.

I was worried that nihilistic, neo-liberal ‘neo-cons” were setting the stage for Fascism under some delusion called the Project for the New American Century dreamed up by the Bush family and their minions, but I was wrong. They started setting up all the mechanisms in earnest by the early 1990’s under President Bill Clinton, who I always thought was too chummy with George Herbert Walker Bush-41 and was really a closet Right-Winger.

Isn’t he singing McCain’s praises now when he is supposed to be bucking for Obama? It will not surprise me a bit when McCain dumps Sarah Palin and announces – no, not Joe – but Hillary C as his running mate. Probably just paranoia, but I would not put it past the Clintons or old Turd-Blossom Carl Rove.

Anyway, the point is of this series is to reveal some of the “undisclosed” workings of our financial system, which as it turns out has long been an un-natural, undemocratic and un-constitutional marriage of private power and public funds for generations, and to shed some light on these unprecedented actions of our Federal Government which are technically displays of classic Fascist principles:

Various scholars attribute different characteristics to fascism, but the following elements are usually seen as its integral parts: socialism, nationalism, class collaboration, populism, militarism, totalitarianism, dictatorship, collectivism, statism, social interventionism, and economic planning… Fascist governments nationalized key industries and made massive state investments. They thought private property was to be regulated to ensure that “benefit to the community precedes benefit to the individual.” They also introduced price controls and other types of economic planning measures. Fascists promoted their ideology as a “third way” between capitalism and Marxian socialism.
The Depository Trust & Clearing Corporation is the biggest bank in the world that you have probably never heard it. They happen to be the registered owners of 99% of all paper (stocks, bonds, securities, etc.). Scary, but true. And they have a perfectly good reason for it – with electronic trading, it is impossible to make timely changes to registered ownership of the paper.

The DTCC retains registered ownership while you as the peasant investor have the designation of beneficiary of the instruments. More on all of that below. First, lets see what the DTCC has to say about itself:

DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.
DTCC’s depository provides custody and asset servicing for 3.5 million securities issues from the United States and 110 other countries and territories, valued at $40 trillion. In 2007, DTCC settled more than $1.86 quadrillion in securities transactions.
DTCC operates through six subsidiaries – each of which serves a specific segment and risk profile within the securities industry:
National Securities Clearing Corporation (NSCC)
The Depository Trust Company (DTC)
Fixed Income Clearing Corporation (FICC)
DTCC Deriv/SERV LLC
DTCC Solutions LLC
EuroCCP Ltd.
DTCC’s customer base extends to thousands of companies within the global financial services industry. DTCC serves brokers, dealers, institutional investors, banks, trust companies, mutual fund companies, insurance carriers, hedge funds and other financial intermediaries – either directly or through correspondent relationships. Increasingly, DTCC’s customers operate both in the U.S. and overseas, where DTCC continues to provide them with services.
In the U.S., DTCC provides critical services to the markets for U.S. Government and mortgage-backed securities, and to all U.S. equity marketplaces, including the New York Stock Exchange, The Nasdaq Stock Market, the American Stock Exchange, and regional U.S. markets, as well as electronic trading and communications networks (ECNs).
All services provided through the clearing corporations and depository are registered with and regulated by the U.S. Securities and Exchange Commission (SEC). The depository is also a member of the U.S. Federal Reserve System and a limited purpose trust company under New York State banking law.
Wow – can you believe these guys are this central to everything that is going on and we have not heard a peep out of them? Wouldn’t you think that their expertise might come in handy right now? Maybe they are – but not for the benefit of you and me.

Why is there so much secrecy in our financial system? Why is so much of the system, and our wealth, controlled by so few people who are so far removed from the law and the Constitution? And how is it they have been getting away with it for so long?

About the DTCC (from a 2003 article “The unknown 20 trillion dollar company”, and you think mine are long! So here are excerpts):

Jim McNeff, Director of Training for the DTC… stated “the DTC is a brokerage clearing firm and transfer center. We’re a private bank for securities. We handle the book entry transactions for all banks and brokers. Every bank and brokerage firm must secure their membership with us in case they become insolvent, so your assets are secure with DTC”. Yes, you read that correctly. The DTC is a private bank that processes every stock and bond (paper securities) for all U.S. banks and brokerage houses. The big question is this; Just who gave this private bank and trust company such a broad range of financial power and clout?
This is another in the list of Federal Agencies like the IRS, FDIC, SEC, and the like who have amazingly broad powers yet little oversight by or subordination to any branch of government. Have you eve heard of an audit by the GAO of the Federal Reserve? You won’t, they are not a government agency, just the “Board” and it’s “Chairman” are, formerly Alan Greenspan and currently Ben Bernenke. The Federal Reserve Board are only an “advisory council” for the President and the families that own the FED, but they are not the decision makers. (More on the Fed in subsequent articles).

The reason the public doesn’t know about DTC is that they’re a privately owned depository bank for institutional and brokerage firms only. They process all of their book entry settlement transactions. Jim McNeff said “There’s no need for the public to know about us… it’s required by the Federal Reserve that DTC handle all transactions”. The Federal Reserve Corporation, a/k/a The Federal Reserve System, is also a private company and is not an agency or department of our federal government, according to the 1998 Federal Registry. The Federal Reserve Board of Governors is listed, but they are not the owners. The Federal Reserve Board, headed by Mr. Alan Greenspan, is nothing more than a liaison advisory panel between the owners and the Federal Government. The FED, as they are more commonly called, mandates that the DTC process every securities transaction in the US. It’s no wonder that the DTC (including the Participants Trust Company, now the Mortgage-Backed Securities Division of the DTC) is owned by the same stockholders as the Federal Reserve System. In other words, the Depository Trust Company is really just a ‘front’ or a division of the Federal Reserve System.
Don’t we deserve to know why this is from someone, especially now, like the media or our elected officials? I guess not, so here is more:

“DTC is 35.1% owned by the New York Stock Exchange on behalf of the Exchange’s members. It is operated by a separate management and has an independent board of directors. It is a limited purpose trust company and is a unit of the Federal Reserve.” -New York Stock Exchange, Inc.
The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer’s name. The assets must be held in the name of DTC’s holding company, CEDE & Co. That’s how DTC has more than $19 trillion dollars of assets in trust… or is it really in “trust” if the private Federal Reserve System is technically holding it in their “unknown” entity’s name?
Obviously, if stock and bond certificates you’ve purchased aren’t in your name, then the “holder” (the Federal Reserve System) could theoretically refuse to surrender them back to you under a “national emergency” according to the Trading with the Enemy Act (as amended).
Between the market crash and terrorism attacks, I don’t think the powers that be will have too much trouble manufacturing more “national emergencies” with which to further erode our Constitutional Rights. Remember the Patriot Act? They have not even begun to use that on us yet.

And it appears President Clinton has paved the way for a Gulag Society with his 1994 Executive Order 12919 (which I will also examine in subsequent articles). Right now though, the DTCC:

Simply put, the Depository Trust Company absolutely controls every paper asset transaction in the United States as well as the majority of overseas transactions, and they now physically hold (as of April 1999) 99% of all stock and bond book-entrys in their street name, not the actual owner’s names.
REGISTERED HOLDER- A Registered Holder literally possesses, owns, and holds, his stock or bond with his name appearing on the face of the certificate. The company that issued the certificate has registered the owner’s (holder’s) name on their official books. This is the safest way to own a paper asset. You literally possess the fully registered certificate and only you can transfer or sell it. By all Rights and definition of law, you are the owner. You have it, you hold it, you possess it, and you keep it. You have the complete control over it.
BENEFICIAL OWNER- A Beneficial Owner is nothing more than a beneficiary, “One who is entitled to the benefit of a contract”- A Dictionary of Law, 1893. All book-entry stocks and bonds you purchase make you the beneficial owner, not the registered holder. The owner of a book-entry stock or bond is the entity or name that it is registered under.
Even the name of the shadow company that is the agent of who knows, possibly the IMF according to this article: CEDE. Can you believe that. CEDE. I kills me.

CEDE- To surrender possession of, especially by treaty. See Synonyms at ‘relinquish’.” -American Heritage Dictionary of the English Language, 3rd Edition of 1992.
And that is just the plan, just as soon as everything gets a little more chaotic in our once static lives. Living in an Empire at it’s peak is like living in the eye of the hurricane – and if you lived your whole life there under the still, blue skies, you really have no idea what is heading your way.

It’s quite obvious that the stock markets are going to ‘crash and burn’ at some future date and for some ‘unknown’ reason… The Great Depression is about to be repeated, and it will be as deliberate and manipulated as the first one that began with the stock market crash of 1929. We are, without a doubt, on the brink of the Mother of all economic Depressions.
Remember, this was penned in 2003. Pretty prophetic in light of this weeks news. So, how does your portfolio look now?

Your broker sends you a fancy accounting every month of your purported holdings, along with dividend and interest payments paid. The fact is, you only receive the benefit of ownership (interest and dividends) without holding title to your property. You are at the mercy of the registered owner, the DTC. If you don’t believe this is true, then call your broker right now and ask them who’s name is listed as the Registered Holder of your book-entry stocks and bonds. If you’re lucky, the broker will tell you “why of course you’re the Beneficial Owner”, then you’ll know the truth. He may emphasize to you that the stocks and bonds are being held in “safe keeping” for your own protection. This is broker language for “your stocks and bonds are held by the DTC in their street name as the creditor”.
I tried it, and they don’t like to talk about it. At all. I had the feeling they did not understand it completely either, but they swore it was only for expedience and nothing sinister. Fine. But why a private company, and why all the cloak and dagger mystery surrounding what is purported to be the most regulated, the most transparent of all industries?

The reality is that the very history of the Federal Reserve is much more akin to that of conspiracies, Masons and secret inner circles of power. I can’t blame the conspiracy theorists, when you examine even the most tame of the accusations, you find a hell of a lot more mysteries than answers. One more point from the article that I am looking into:

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. Is it any wonder that the UN can operate year after year with increasing budgets, but without sufficient funds? The UN has nearly $19 Trillion of backing and reserves, thanks to millions of duped Americans. We are financing the New World Dis-Order with our stocks and bonds.
Sounds so ominous, but then again it doesn’t when we go back to some of the text that DTCC has provided about themselves and some of their initiatives on their own website. Remember, they technically own your securities, they are a private corporation that only serves banks, and they use whatever fees they collect to increase their world-wide monopoly. From DTCC:

DTCC Organizes GREAT Collaboration with Global Peers: More than 40 delegates from 11 infrastructure organizations across the globe came together in New York in July for the first annual Global Relations Exchange and Training (GREAT) workshop hosted by DTCC. The program is aimed at cultivating relationships among colleagues from international clearers and depositories, and fostering collaboration on key trends shaping operations practices in today’s capital markets.
Robert Hegarty, managing director and practices leader, Securities & Investments and Insurance from the independent research firm the Tower Group, discussed in his presentation on securities industry trends the demographic shifts transforming the capital markets, and the challenges facing securities and investment firms and infrastructure organizations.
“There has been – and will continue to be – a major shift of wealth creation from the west to the east and, along with that shift, massive numbers of potential clients to win and service. Companies that don’t embrace this new global marketplace will miss their opportunity to determine their future,” said Hegarty.
Having several of DTCC’s executives meet with these international delegates demonstrates the priority the organization places on gaining a more global perspective. “The sessions were extremely productive in helping us gain a better sense of the value foreign markets place on our services, and the potential business opportunities we all have outside our home borders,” said Patrick Kirby, DTCC managing director, Asset Services.
The DTCC is bigger than GM (GM), GE (GE), Google (GOOG), Microsoft (MSFT) and many other mega-companies – all added together. Are you sure you never heard of them?

As the rich realized in France, money, power and influence means nothing when your head is in a guillotine.

These people are enemies of America.

I say we start the arrests with the Herb Greenbergs and Gary Weiss’s to make an example, then go for people who are paid to lie like Stu Goldstein and Larry Thomson at the DTCC, then start arresting the commissioners at the SEC and scumbags like Shelby who was on the take both as a republican and when he was a democrat.

It’s time we take this country back from the parasites that suck wealth from the middle class. They are little mosquitos and it is time we get the fly swatter and show them who is boss.

The current corrupt system gives these scumbags power, but they are tiny little people with names we can put in lights and they are very arrestable.

We the people ARE and always HAVE BEEN in charge and it is time we stop acting like children.

Solid post. Full understanding of the way the DTCC / NSCC so convolutes its own charter as it self-protects the firms it serves is not a mystery. It would be unlikely that any internal investigative action therein, or one run by the SEC, would serve to ameliorate the harm. The network these people operate within is far too intertwined.

It is going to take outside action by a consortium whose work, if properly compiled, will provide Congress with the information and tools necessary to make changes.

Stopping the illegal activities is one thing. Establishing damages and if possible allocating to the appropriate parties is another story. I’m more interested in the creation of the data and analysis from the information that is available first. We can worry about the other issues once that is complete.

In the interim, let me speak about an issue in theory that illustrates the harm many have spoken of, shares in existence being greater than shares issued. Let’s assume you have a company that has issued 50,000,000 shares. You check the records and find that insiders own 20,000,000 shares and institutions own 40,000,000 shares thus the actual float, not including free traded shares is 120% of the issued amount. This may seem illogical but our work suggests that stocks subject to being naked shorted often display such ratios. sometimes much greater.

If a hedge fund that is naked short covers shares they have to buy. If you assume free traded shares remains constant, unless an insider or institution is the seller how does this ratio ever decrease? There are a number of stocks that have recently come off the SHO List but their respective ratios, as discussed above, has not changed. You may ask how that could happen?

The fact that these ratios do not decrease, as stocks are removed from the list, suggests that the hedge funds employ the illegal technique of “parked” or “free-riding” shares. With either type of trade, a true conspiracy exists. Naked shorts are not being covered, they are being exchanged. The exchange can be between two accounts controlled by the same hedge fund or through accounts owned by separate hedge funds. There are numerous ways in which market makers (another unbridled tool of the prime brokers) can serve this dual illegal purpose as well but our SEC sees no reason to close that loophole either.

My Dad became a broker when I was 13. Forty years later there is little I have experienced or do not understand about how the securities industry works. Many people who read this thread and have issues relating to specific securities, similar to what we all have spoken of, have contacted me by email. The stories have many similarities.

In listening to what each person has to say suggests that the “patterns” both you, me and others have spoken of are becoming more clear and eveident daily. I need to hear from more people, share owners of other company’s stocks whose names have appeared or still appear on the SHO List, who have been victimized by this conspiracy. This will enable us to complete a puzzle that is missing but a few pieces.

I’ve done this kind of work before and see where a cross sectional analysis of current and former SHO Listed companies will turn the tide against every conspiring entity from the prime brokers to the hedge funds to the DTCC / NSSC all the way up to the SEC.

I list my email address again for you or anyone who has an interest to contact me. Information will always be kept confidential as some of those who have already been in contact are the very people who run these companies. Looking forward to hearing from one and all and like others, for being a small part of a large number of people who have made a difference.

dzimmer@aaronmorgangroup.com

Please note, we are “reconstructing” our website to add a segment that deals directly with the forensic side of this securities issue. We hope to have it complete (or close to complete) early this week. Others made this an issue of awareness. It is up to the rest of us to drive home the information we collect and unearth such that change is effected.

IE in the case of Sedona

“sell with unbridled levels of aggression”

This is not complicated, folks, but there sure are a lot of people who want it covered up for the all too obvious reason – it is a CRIMINAL ACT and even could be looked at as SEDITION or TREASON.

The SEC is CLEARLY responding to pressure from people they are supposed to be REGULATING…..

This is sick.

I have had enough of this.