33 Replies to “Patrick Byrne on New England Cable News”

  1. Hedgie, the heat getting to you huh? LOL!!More to come big guy more to come!! But I am sure you are used to the heat based on where you reside and will be residing!!

  2. I was personally told by the SEC Office of Investor Education (a Mr Green):

    ROBERT T GREENE
    Office of Investor Education and Advocacy
    U.S. Securities and Exchange Commission
    100 F St, NE
    Washington, DC 20549-0213
    (202) 551-6331

    that the SEC HAS NEVER said Naked Shorting is illegal. He said there was ABUSIVE short selling that isn’t legal.

    Alice in Wonderland mentality they have there…

  3. It is not brain surgery. If you don’t have a pre borrow, you have no right to sell. Period.

  4. SEE MY PREVIOUS MESSAGE POST:

    —– Original Message —–
    From: marv eatinger
    To: sgoldstein@dtcc.com
    Cc: Kara.scannell@wsj.com
    Sent: Monday, February 16, 2009 7:24 PM
    Subject: Fw: NAKED SHORT SELLING AND COVERING THREE YEARS LATER BY USING TWO ACTIVE TRADING SYMBOLS OF “DLOV” & “DLVO” – DALECO RESOURCES CORP – OTCBB

    —– Original Message —–
    From: marv eatinger
    To: webmaster@fairness.com
    Cc: hawked@sec.gov ; chairmanoffice@sec.gov ; CFLETTERS
    Sent: Monday, February 16, 2009 6:16 PM
    Subject: NAKED SHORT SELLING AND COVERING THREE YEARS LATER BY USING TWO ACTIVE TRADING SYMBOLS OF “DLOV” & “DLVO” – DALECO RESOURCES CORP – OTCBB

    Marv Eatinger Says:
    February 16th, 2009 at 7:04 am
    NAKED SHORT SELLING & COVERING BY DALECO RESOURCES CORP – SYMBOLS “DLOV” & “DLVO”. SEE FEB 15, 2009 POST BY MARV EATINGER:

    —– Original Message —–
    From: marv eatinger
    To: sgoldstein@dtcc.com
    Cc: nsccaa@dtcc.com ; newseditors@wsj.com
    Sent: Thursday, July 17, 2008 7:15 PM
    Subject: NAKED SHORT SELLING AS AIDED & ABETTED BY THE DTCC?????

    STUART Z. GOLDSTEIN:

    DTCC: FROM FEB. 28, 2000 TO AUG. 1, 2000 DALECO RESOURCES CORP OR DALECO RESOURCES INC. TRADED ACTUAL SHARE VOLUME OF APPROXIMATELY 70,000 COMMON SHARES WHILE DELISTED TO THE PINK SHEETS FROM THE OTCBB MARKET. IN 1996 & 1997 DALECO RESOURCES CORP OR DALECO RESOURCES INC. HAD APPROXIMATELY 7,000,000 COMMON SHARES SOLD “NAKED SHORT”. THESE “NAKED SHORT” SALES WERE COVERED BY THE ACTUAL TRADING OF APPROXIMATELY 70,000 COMMON SHARES PLUS TWO EXTERNALLY ADDED ZEROS 3 YEARS LATER FROM FEB. 28, 2000 TO AUGUST 1, 2000!!! DID THE DTCC AID DALECO IN THIS SCAM OF THE REGULATORY SYSTEM FOR PUBLIC EQUITIES?

    Marv Eatinger

    > FROM HISTORICAL VOLUME FOR DALECO RESOURCES CORP– (AS OF SEPT. 27, 2006 AT 4:29 PM CST THE BELOW HISTORICAL
    VOLUME DATA FOR DALECO RESOURCES CORP HAS NOT
    CHANGED ON http://WWW.MONEYCENTRAL.COM)
    > SYMBOL DLOV ON http://WWW.MONEYCENTRAL.COM
    >
    >——————————————————–VOLUME
    > 3/14/2000 0.1563 0.1563 0.1563 0.1563 230,000
    > 3/13/2000 0.7500 0.7500 0.7500 0.7500 200,000
    > 3/10/2000 0.1250 0.1250 0.1250 0.1250 0
    > 3/9/2000 0.1250 0.1250 0.1250 0.1250 30,000
    > 3/8/2000 0.7500 0.1250 0.1250 0.1250 2,620,000
    > 3/7/2000 0.5000 0.1250 0.1250 0.1250 230,000
    >
    > ===========================================================================================
    —– Original Message —–
    From: “Ron Franz”
    To:
    Sent: Tuesday, April 04, 2006 10:13 AM
    Subject: Re: [CSI Website Query: daily volume figures multiplied by 100 – symbol DLOV]

    >I had them remove the extra digits.
    > Yahoo should have it corrected by this afternoon.
    > Please let me know if you do not see the corrections.
    > Thank You,
    >
    >
    > marv@mitec.net wrote:
    >> Regarding:
    >> Data Error Report
    >>
    >>
    >> Message:
    >> On March 7, 2000 the following web sites showed volume for the day for DLOV – Daleco Resources CP of 2,300 shares: FinancialWeb.com and Quicken.com.
    >>
    >> On March 8, 2000 the following web sites showed volume for the day for DLOV – Daleco Resources CP of 26,200 shares: FinancialWeb.com, Quicken.com and MSN Money Central.com.
    >>
    >> On March 13, 2000 Barchart.com showed DLOV – Daleco Resources Corp volume for the day as 2,000 shares.
    >>
    >> Daleco Resources Corp was deleted from the OTCBB to the Pink Sheets on February 22, 2000 to be effective on February 28, 2000. Yahoo Finance & MoneyCentral web sites are presently the only web sites that I can find that show Historical Volume figures for the time period of March 1, 2000 to August 1, 2000 when Daleco Resources Corp was listed only on the Pink Sheets.
    >>
    >> Yahoo Finance Historical Volume figures for the above mentioned dates is shown as follows:
    >> March 7, 2000——————–230,000 shares
    >>
    >> March 8, 2000——————2,620,000 shares
    >>
    >> March 13, 2000——————200,000 shares
    >>
    >> Apparently from the period starting March 1, 2000 to August 1, 2000, all trades that took place in Daleco’s stock had two zeros added to the daily trading volume!
    >>
    >>
    >> From:
    >> marv@mitec.net

    > FROM HISTORICAL VOLUME ON http://WWW.YAHOO.COM FOR– (AS OF SEPT. 27, 2006 AT 4:35 PM CST THE BELOW HISTORICAL
    VOLUME DATA FOR DALECO RESOURCES CORP HAS NOT CHANGED
    ON http://WWW.YAHOO.COM SINCE TWO ZEROS WERE REMOVED FROM THIS
    HISTORICAL TRADING VOLUME ON APRIL 4, 2006 – SEE RON@CSIDATA.COM
    ABOVE EMAIL DATED APRIL 4, 2006 AT 10:13 EST)
    > DALECO RESOURCES CORP SYMBOL DLOV
    >
    >———————————— VOLUME
    > 14-Mar-000.160.160.160.16 2,300
    > 0.13
    > 13-Mar-000.750.750.750.75 2,000
    > 0.63
    > 10-Mar-000.120.120.120.12 0
    > 0.10
    > 9-Mar-000.120.120.120.12 300
    > 0.10
    > 8-Mar-000.120.750.120.12 26,200
    > 0.10
    > 7-Mar-000.120.500.120.12 2,300

  5. How can we fix the financial markets when we can’t even get our president right ?

    Barry Soetoro, received financial aid as a foreign student from Indonesia

    * Posted by Irma on June 11, 2009 at 8:01pm
    * View Irma’s blog

    Date: Friday, May 8, 2009, 7:55 PM

    AP- WASHINGTON D.C. – In a move certain to fuel the debate
    over Obama’s qualifications for the presidency, the group “Americans for
    Freedom of Information” has released copies of President Obama’s college
    transcripts from Occidental College . Released today, the transcript
    indicates that Obama, under the name Barry Soetoro, received financial aid
    as a foreign student from Indonesia as an undergraduate at the school. The
    transcript was released by Occidental College in compliance with a court
    order in a suit brought by the group in the Superior Court of California.
    The transcript shows that Obama (Soetoro) applied for financial aid and was
    awarded a fellowship for foreign students from the Fulbright Foundation
    Scholarship program. To qualify, for the scholarship, a student must claim
    foreign citizenship. This document would seem to provide the smoking gun
    that many of Obama’s detractors have been seeking.

    Along with the evidence that he was first born in Kenya
    and there is no record of him ever applying for US citizenship, this is
    looking pretty grim. The news has created a firestorm at the White House as
    the release casts increasing doubt about Obama’s legitimacy and
    qualification to serve as president. When reached for comment in London ,
    where he has been in me etings with British Prime Minister Gordon Brown,
    Obama smiled but refused comment on the issue.

    Britain ‘s Daily Mail has also carried the story in a
    front-page article titled, “Obama Eligibility Questioned,” leading some to
    speculate that the story may overshadow economic issues on Obama’s first
    official visit to the U.K.

    In a related matter, under growing pressure from several
    groups, Justice Antonin Scalia announced that the Supreme Court =2 0 agreed on
    Tuesday to hear arguments concerning Obama’s legal eligibility to serve as
    President in a case brought by Leo Donofrio of New Jersey . This lawsuit
    claims Obama’s dual citizenship disqualified him from serving as president.
    Donofrio’s case is just one of 18 suits brought by citizens demanding proof
    of Obama’s citizenship or qualification to serve as president.

    Gary Kreep of the United States Justice Foundation has
    released the results of their investigation of Obama’s campaign spending.
    This study estimates that Obama has spent upwards of $950,000 in campaign
    funds in th e past year with eleven law firms in 12 states for legal
    resources to block disclosure of any of his personal records. Mr. Kreep
    indicated that the investigation is still ongoing but that the final report
    will be provided to the U.S. Attorney General, Eric Holder. Mr. Holder has
    refused to comment on the matter.

  6. Why bother with the SEC at this point? They’re so far gone, it seems like a waste of time. And Congress? Sheesh, don’t get me started.

    Wouldn’t the financial crimes division of the FBI be the best hope at this point? Is the evidence being given to the FBI as well as the SEC (waste of paper).

  7. Anon, what does this have to do with our Market Manipulation, and Capital Markets??Absolutly nothing!! But you post this drivel here again. Please keep this cr-p of the forum!! It discredits any and all of your other good posts!!

  8. Dr. Jim DeCosta,

    The more I learn about the “Wall Street Counterfeit Machine”, the more questions come to mind.

    I am wondering if there is a direct connection between the FTDs (Fail to Delivers – Counterfeit Shares of Stock) and the short position reported twice a month?

    There seems to be a direct connection, but I am not sure what it is.

    QUESTION:
    Can you shed some light on this seeming connection?

  9. sean,
    Please refrain from attacking others on the board when YOU feel their postings are not relevant. The post regarding Obama is more than relevant because he has the power to and is calling for market reform. Sadly, he may just be holding a presidency he is not legally entitled to hold so therefore the puppet masters will continue unbridled market manipulation at will without prosecution if the commander in chief is of foreign born and bred and allows the destruction of the American way which does include market manipulation as well as the hyperinflation we are headed for. No true change can come if the powers that be are NOT legitimate to start with. This is not an attack on Obama, it is reverent as he will be providing new market legislation in the near future via his cronies like Pelosi and Reed….
    Without true Leadership, we are all screwed !!!

    anon

  10. Anon, Everytime you( not others) attack President Obama, expect the same from me to you. He is OUR President and was legally voted in and there is NOTHING YOU or anyone else can do about it!! So lets stick to talking about stock manipulation and keep your bigoted rightwing crap off the board!!! Thanks Jim for your input. This guy is out of control. Now back on topic…

  11. Good Lord, Sean…. get a grip! I find it absolutely amazing that you chastise anyone who raises any issue with, or is even remotely critical of Obama (even when such criticism pertains to issues that are central to stock manipulation and financial fraud). It’s easy to see how much you blindly support him, to the point that you’re not even interested in learning whether or not the electorate has been duped into electing someone who may not even be Constitutionally qualified to serve in the office.

    I understand that you think that this is not the “forum” to discuss any issues except for those that you deem appropriate, but you really should stop trying to dictate to everyone what information they can and cannot share with others here. That is a job for the moderators, not for you.

    I happen to appreciate the information that was shared here by “Anon”. Until I read his/her post, I was completely unaware that the SCOTUS had agreed to hear the case and I was pleased to learn of this development. I hope that the matter can be put to rest once and for all but, until then, there are legitimate questions about whether Obama meets the minimum qualifications for the office. I would think that anyone who is interested in the truth would want to know for certain whether or not Obama was born in Kenya or Hawaii and, if Obama was indeed born in Hawaii, it would be very easy to produce a official birth certificate. And until an official birth certificate is produced, this cloud will hang over his presidency (much like the 2000 election results were repeatedly called into question during the entire eight years of the Bush presidency).

    Quite frankly, I am more disgusted by your accusation of “bigotry” than anything else! What do you find “bigoted” about the post above? Hmm? Please be specific….

    Then again, this is what can be expected from those who are blindly cheering for Obama as he drive this country toward the brink of bankruptcy and financial ruin…. when you can’t dispute the message, attack the messenger! And when all else fails, play the race card….

  12. http://WWW.DEEPCAPTURE.COM: THE FOLLOWING IS POSSIBLY SOMEWHAT OFF TOPIC. BUT, THE INFORMATION IS ALL PART OF THE DETAIL THAT MADE IT POSSIBLE FOR DALECO RESOURCES CORP, OR DALECO RESOURCES, INC. [[DALECO RESOURCES, INC. WAS A TEXAS INCORPORATED COMPANY THAT WAS NEVER “PUBLICLY” AFFILIATED WITH DALECO RESOURCES CORP. DOV AMIR & LOUIS ERLICH (FORMER DALECO RESOURCES CORP PRESIDENT & CEO) INVENTED DALECO RESOURCES INC]] AFFILIATES TO SELL “NAKED SHORT” AT LEAST 5,000,000 TO 7,000,000 COMMON SHARES OF DALECO RESOURCES CORP AND COVER THESE “NAKED SHORT” SALES THREE YEARS LATER WITH STAGED TRADING WHILE LISTED ON THE PINK SHEETS AND WITH THE ADDITION OF “TWO ZEROS” TO THE VOLUME OF THESE ACTUAL STAGED TRADES.

    DALECO RESOURCES INC AS FOLLOWS:

    Entity Information: DALECO RESOURCES INC
    PO BOX 483 C/O DALE CHEPULIS,PRESIDENT
    LEWISVILLE, TX 75067-0483

    Status: NOT IN GOOD STANDING
    Registered Agent: DALE M CHEPULIS
    4999 LUSK LANE
    DOUBLE OAK, TX 75028
    Registered Agent Resignation Date:
    State of Formation: TX
    File Number: 0112441900
    SOS Registration Date: August 22, 1989
    Taxpayer Number: 17522921778

    —– Original Message —–
    From: marv eatinger
    To: philip.long@yale.edu
    Cc: franzese@ou.edu
    Sent: Wednesday, November 15, 2006 8:01 PM
    Subject: REGULATORY CONTROL – HISTORICAL DATA – DUE DILIGENCE & THE AVERAGE INVESTOR?

    [PDF]
    CRSP Data Definitions and Coding Schemes Guide
    File Format: PDF/Adobe Acrobat
    Daleco Resources, Inc. 85619. Meditrust Corp. … PERMCO is a unique permanent company identification number assigned by CRSP to all …
    http://www.som.yale.edu/itg/research_unix/pdf/data_defs.pdf – Similar pages

    http://www.som.yale.edu/itg/research_unix/pdf/data_defs.pdf

    http://WWW.SOM.YALE.EDU:

    FROM PAGE 9 OF THE ABOVE SHOWN YALE.EDU PDF: THE FOLLOWING ISSUES WITH DATA PRIOR TO 1998 HAVE BEEN ADDED TO
    THE DATA FILE:

    PERMNO NAME
    78387 DALECO RESOURCES, INC.

    AFTER READING APPENDIX B: CRSP TERMINOLOGY (PAGE 177 OF 210), I AM COMPELLED TO ASK THE FOLLOWING QUESTION: HOW
    DID DALECO RESOURCES, INC. EVER END UP BEING SHOWN WITH A PERMNO NUMBER OF 78387 FOR THE YEAR OF 1998????? IN
    EVERY FILING THAT DALECO RESOURCES CORP OR DALECO RESOURCES CORPORATION HAS FILED WITH THE SEC, DALECO
    RESOURCES, INC. HAS NEVER ENTERED THE PICTURE AS ASSOCIATED WITH DALECO RESOURCES CORP OR DALECO
    RESOURCES CORPORATION!

    CRSP THROUGH YEAR 1998 SHOWS DALECO RESOURCES, INC. WITH A CRSP PERMNO NUMBER OF 78387. DOES THIS CRSP NUMBER
    OF 78387 REALIZE THE EFFECT OF DALECO RESOURCES CORP APPARENT EFFECTIVE REVERSE 1 FOR 10 COMMON STOCK SPLIT DATES
    OF FEBRUARY 17, 1998 AND FEBRUARY 24, 1998? NOTICE THAT DALECO RESOURCES CORP NEVER USED CUSIP NUMBER OF 23437P208
    (POST REVERSE SPLIT CUSIP NUMBER AS COMPARED TO 23437P109 PRE REVERSE SPLIT NUMBER) ON ANY OF DALECO’S FORM
    12B-25 FILINGS WITH THE SEC AFTER FEBRUARY 24, 1998 (COPIES OF 12B-25 FILINGS SHOWN BELOW)!
    ============================================================================================================
    “On February 17, 1998 by BUSINESS WIRE (BW1566) Wayne, Pa. and REUTERS (15:46 02-17-98) Wayne, Pa. Daleco Resources Corp
    issued a Press Release that included the following information: In the annual meeting held on Feb. 16, 1998 the shareholders
    overwhelmingly approved the board of directors proposed amendment for a ten for one reverse split of the company’s common shares.

    The effective date for the reverse stock split is Feb. 17, 1998.”
    =============================================================================================================
    “FROM 10KSB REPORT FILED BY DALECO RESOURCES CORP ON MAY 18, 1999 WITH THE SEC – PAGE 39 – NOTES TO THE CONSOLIDATED
    FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPT. 30, 1998, 1997 AND 1996: Item k.
    k. Reverse Stock Split

    Effective February 24, 1998, the majority of
    stockholders of the Company approved a reverse
    ten-for-one stock split. The effect of the reverse
    stock split has been retroactively reflected in these
    financial statements. All reference to the number of
    common and preferred shares, stock options, warrants,
    and per share amounts elsewhere in these financial
    statements and related footnotes have been restated
    as appropriate to reflect the effect of the reverse
    split for all periods presented.”
    ============================================================================================================

    DALECO RESOURCES CORPORATION (OTCBB) FORM 12(b)-25 SEC FILINGS USING CUSIP NO. 23437P109 AS A REFERENCE:

    FORM 12(b)-25 CUSIP NO. 23437P109 FORM 12(b)-25 SEC FILING DATE

    NT 10-Q YES FEB. 11, 2005

    NT 10-K NONE DEC. 28, 2004

    NT 10-K YES DEC. 29, 2003

    NT 10-K YES DEC. 30, 2002

    NT 10-K YES DEC. 27, 2001

    NT 10-K YES DEC. 28, 2000

    NT 10-K NONE DEC. 29, 1999

    NT 10-Q YES AUG. 13, 1999

    NT 10-K NONE DEC. 30, 1998
    ===============================================================================================================================

    Marv Eatinger
    711 no. 92ct #408
    Omaha, NE 68114

    Telephone: 402-391-7536

  13. More power to the Fed? Can this be good in any way with what we have seen of the Fed actions?

    What do you all think?

  14. just for the record
    hussein obama is not my president
    he has usurped the office of the presidency
    and i consider hussein obama a traitor and therefore
    my enemy.

  15. There are many places on the internet to discuss President Obama’s citizenship, and this should not be one of them. Let’s keep naked short selling and market manipulation firmly locked in our sight picture here. Straying too much into politics is mission creep. I am happy to listen to people theories on 9/11 or the President’s citizenship status – only at somewhere else.

  16. DCN, I do not disagree with you… however, we do not need any thought police here, do we? There is also plenty of that to go around. For the most part, people do stay on topic and post relevant information.

    And the Obama administration’s failure to quickly and adequately address the issues of market manipulation and naked short selling is absolutely fair game….

  17. No thought police necessary, but subject constables are needed. The original post should have been responded to better, without escalation and mudslinging. The administration’s response to market manipulation can be discussed without covering the President’s citizenship. Neither this President nor the last is beyond reproach with regards to nss-manipulation; however, it can and should be discussed without such vitriol.

  18. DCN and Jim Hall thanks for comments I will refrain from expressing my furhter thoughts to those who attempt to hijack this blog for their personal “Nonsense” and get back to matters at hand. Your responses were more gentlemanly than mine was going to be!!!
    Back on topic..

    Commentary: Awaiting the Next Pecora Commission
    By Stephen J Nelson; The Nelson Law Firm, LLC

    June 13, 2009

    On May 20, 2009, President Obama signed into law the “Fraud Enforcement and Recovery Act of 2009 (FERA),” legislation enacted in response to the financial crisis by an overwhelming vote of both houses of Congress.

    As one might expect, the Act raises penalties for financial fraud, expands the reach of government agencies, including the SEC, to investigate fraud, and expands the type of instruments that would be covered by existing prohibitions on fraudulent activities. It is a typical legislative response to ramp up enforcement resources in response to notorious criminal behavior. Old movie buffs will recall that the good citizens of Dodge City hired Wyatt Earp when things had gotten out of hand.

    FERA also creates, within the legislative branch, the Financial Crisis Inquiry Commission to determine what caused the current financial crisis. The establishment of the Commission is intended to recreate the success of the famous Pecora Investigation, which examined the causes of the First Great Depression.
    There actually was no “Pecora Commission.”

    On March 4, 1932, the Senate Committee on Banking and Currency launched an investigation into the causes of the 1929 Market Crash. The Senate at the time was Republican controlled, and Democrats charged that the whole thing was a white wash. In 1933, the now Democratic controlled Senate hired Ferdinand Pecora, a New York assistant district attorney, to write the final committee’s report. He found the investigation was incomplete, and asked for an additional month of hearings.

    Pecora conducted the hearings loaded for bear. His expose of National City Bank (now Citibank) caused the resignation of its president. Under Pecora’s grilling, JP Morgan admitted that he, and many of his partners, had paid no income taxes in 1931 and 1932, resulting in a huge public outcry.

    But the greatest success of the Pecora investigation was its public exposure of a wide range of abusive practices by banks and their affiliates. Among other things, Pecora was able to place on the public record evidence of banks underwriting unsound securities to pay off bad bank loans and pools created to support market prices of bank stocks.

    The hearings resulted in massive public support for new regulations. Congress responded by passing in rapid fire order the Glass-Steagall Banking Act of 1933 to separate commercial and investment banking, the Securities Act of 1933 to set penalties for filing false information about stock offerings, and the Securities Exchange Act of 1934, which formed the SEC to regulate the stock exchanges.

    The FERA Commission has been charged to examine a list of twenty-two potential causes of the financial crisis. Among other things, these include the failures of federal and state regulators, monetary policies, global imbalances in savings, trade flows and fiscal imbalances of various governments, accounting practices, tax treatment of financial products, lending practices and securitization, derivatives and short selling. Compensation is on the list twice, as compensation structures generally and compensation for employees of financial services firms in particular. Finally, the Commission is required to examine the causes of each major financial institution that failed, or would have failed without exceptional governmental assistance.

    To accomplish all of this, the Commission is empowered to hold hearings, subpoena witnesses, and retain staff, including consultants. I expect the Commission will seek outside legal help, and if so, we will submit our application to assist the Commission in its work.

    Will the FERA Commission match the success of the Pecora Investigation? If so, we should see a substantial change in financial services regulation in the wake of its final report.

    One thing that makes this seem unlikely is that the Commission’s report is due on December 15, 2010. The Obama administration, as well as the relevant Committees in the House and Senate, seemed determine to introduce legislation later this year, a full year before the Commission’s work is complete. If this effort succeeds, the FERA Commission’s report will be anticlimactic.

    Rumors emanating from the House and Senate, as well as the White House, suggest that the zeal for regulatory reform has diminished, as the economic outlook appears to be brightening. The legislation developed this year will reflect economic conditions. If the favorable economic trend continues, the vaunted reforms that result from the crisis are likely to be fairly modest.

    On the other hand, if the current improvement in financial conditions is temporary, we may be knee-deep in financial tragedy next year. The FERA Commission’s report in 2010 would then be very timely and result in a regulatory upheaval. As is so often the case, events on the ground will determine the outcome.

    *****

    Stephen J. Nelson is a principal of The Nelson Law Firm in White Plains, N.Y. Nelson is a weekly contributor and columnist to Traders Magazine’s online edition. He can be reached at sjnelson@nelsonlf.com

  19. Short Sales: SEC Expected to Rule on Fails
    By Nina Mehta

    June 2009

    The Securities and Exchange Commission is expected to make permanent an emergency order it instituted last September to reduce naked short selling. The temporary rule, known as Rule 204T, was put in place when markets were in free fall and investors blamed abusive short-selling practices for the decline. The rule expires on July 31.

    “I expect the Commission to consider adoption of that [rule],” said James Brigagliano, co-acting director of the SEC’s Division of Trading and Markets. He added that the SEC could “adopt it as it exists or in response to comments” from the industry. Brigagliano spoke at a Security Traders Association conference in Washington, D.C., last month.

    Kevin Cronin

    Rule 204T requires clearing firms, by 9:30 a.m. on the day after settlement date, which is the third day after the trade, or T+3, to close out short sales that did not settle. The SEC added Rule 204T to Regulation SHO to counter naked short selling, in which investors fail to borrow the shares needed for settlement. Abusive naked short selling occurs when investors deliberately don’t borrow the shares.

    The SEC’s rule imposes strict penalties on firms whose internal desks or customers flout the new rule. Until the failed trades settle, those firms must “pre-borrow” (arrange in advance to borrow) shares for new short sales in that name, instead of simply locating the shares. That raises trading costs for those firms.

    Richard Ketchum, the newly installed head of the Financial Industry Regulatory Authority, called Rule 204T a success. “It’s remarkable how well that has worked,” he said at the STA conference. He noted that it was implemented “in a fairly short time when firms didn’t even have technology systems in place.”

    Industry members also support the rule. Kevin Cronin, director of global equity trading at mutual fund giant Invesco, said the problem of naked short selling “has been effectively dealt with through Rule 204T.” At last month’s SEC roundtable discussion on short selling, Cronin said the rule should be made permanent.

    According to the SEC’s Office of Economic Analysis, the average daily number of stocks on the “threshold list” of securities (those with large and persistent levels of failures-to-deliver, which represent stock sold short whose shares were never borrowed) decreased to 63 per day in March, down from nearly 600 last July. Overall, the daily fails in all securities declined 81 percent to 0.43 billion shares on March 31, from a high of 2.2 billion shares last July 16. Fails can result from abusive naked short selling as well as operational glitches.

    ———vvv——-vvv——-
    But not everybody thinks the SEC is off the hook. Roel Campos, a former SEC commissioner who is now a partner at law firm Cooley Godward Kronish, credits the SEC with reducing fails. But he doesn’t think the agency went far enough. “Failures-to-deliver, a proxy for naked short selling, continue to occur in companies that do not appear on the Regulation SHO threshold list,” he wrote in a letter to the SEC on behalf of a dozen issuers. This can happen when the company has a large number of shares outstanding, raising the bar to get on the threshold list. Campos thinks the SEC should require investors to pre-borrow shares for all short sales.

    ( http://www.tradersmagazine.com/issues/20_295/short-sales-fails-sec-103844-1.html )

  20. So let me understand this correctly about Rule 204T added to Regulation SHO to counter naked short selling…..:

    “Rule 204T requires clearing firms, by 9:30 a.m. on the day after settlement date, which is the third day after the trade, or T+3, to close out short sales that did not settle. The SEC added Rule 204T to Regulation SHO to counter naked short selling, in which investors fail to borrow the shares needed for settlement. Abusive naked short selling occurs when investors deliberately don’t borrow the shares.

    The SEC’s rule imposes strict penalties on firms whose internal desks or customers flout the new rule. Until the failed trades settle, those firms must “pre-borrow” (arrange in advance to borrow) shares for new short sales in that name, instead of simply locating the shares. That raises trading costs for those firms.”

    …. So let me get this straight in my mind – the author stated……:

    “The SEC’s rule imposes strict penalties on firms whose internal desks or customers flout the new rule. Until the failed trades settle, those firms must “pre-borrow” (arrange in advance to borrow) shares for new short sales in that name, instead of simply locating the shares. That raises trading costs for those firms.”

    ….. if any “clearing firms” engages in abusive naked short counterfeit selling, they are “PENALIZED” by requiring the clearing firm to “PRE-BORROW” REAL SHARES of STOCK BEFORE sell can sell any additional shares of a specific stock?

    … And this “PRE-BORROW” requirement of REAL SHARES of STOCK raises the trading costs a clearing firm engaged in Counterfeit Naked Short Selling?

    WOW, what a horrendous penality…. – the Counterfeiting Clearing firm is then ONLY allowed to sell REAL SHARES OF A COMPANY STOCK!!!!!!!

    Requiring a clearing firm to sell ONLY REAL SHARES of Stock is the PENALTY!!!

    Only the Wall Street Counterfeit Machine would call this requirement a PENALTY!!!

    If any of us common people were to sell a car which we did not delivery after receiving a payment for 100% the cost of the car, the penalty would be JAIL TIME!… not the requirement of only SELLING REAL CARS!!

  21. Watching the Senate Banking Committee hearings grilling Giethner.
    We are doomed, there is no hope.
    They are just too easy to dupe!

  22. Ron doc. I watched it too and you are correct. This scam is just too obvious!!! Just more of the same from the last treasury sec.

  23. Just a refresher for some..

    For inquiring minds, a “Failure to Deliver” position or “FTD” is a “Naked Short” position. See the important video below by Senator Robert F. Bennett that all investors should see as it is very short while making concise statements explaining a major issue within the market for all to fully understand:
    http://www.cnbc.com/id/15840232?video=652216599&play=1

  24. “Stock Shock” Just Released — Blockbuster Movie About Sirius XM Exposes Wall St. Corruption and Inept Regulation
    “STOCK SHOCK” is the movie sending shock-waves through America’s financial centers, exposing the dark underbelly of America’s worst stock market sharks, laying out the sordid financial schemes that led to America’s economic collapse in early 2009.
    Stock Shock offers a clear and simple explanation of some of the most complex financial shenanigans in the history of the markets.
    This fraud has wiped out thousands of companies, millions of jobs and billions of investment dollars. No part of the American economy is unaffected.
    You don’t annihilate the companies in this economy that create new jobs without destroying the entire country.

    Hollywood, CA (PRWEB) June 16, 2009 — “Stock Shock” is the first of 3 major films to be released about the fleecing of the American investor. This timely movie reveals the tricks of traders who use lightening fast market technology to make profitable bets on stocks they never even own, landing legitimate investors in the poorhouse. “Stock Shock” is told through the eyes of stunned Sirius XM investors who saw their stock nearly evaporate.

    Stock Manipulators Celebrate Gains

    This movie exposes a technique known as naked short selling, which has resulted in the collapse of the stock value of some of America’s most famous and promising public companies, all so that a small handful of jaded market manipulators could make a fast buck.

    Thousands of investors have flocked to “Stock Shock” fan sites in anticipation of the release of the movie. Tens of thousands of American investors are twittering Stock Shock developments as word of the film and its message spreads.

    “Stock Shock” zeroes in on one of the most shorted stocks on Nasdaq: Sirius XM, which hit a high of $9.00/share and then plummeted to a horrifying low of 5 cents in 2009, leaving an estimated one million investors with their dreams crushed and their bank accounts emptied. Stock Shock interviews individual investors who lost their shirts and who are in a rage because it didn’t have to happen.

    Michael Moore, Oliver Stone and Ridley Scott are all working on films about this latest round of greed. But “Stock Shock” is first out of the gate.

    “Shocking and eye opening,” says CNN Headline News TV Host Jane Velez-Mitchell of the film, “Stock Shock offers a clear and simple explanation of some of the most complex financial shenanigans in the history of the markets.”

    “This fraud has wiped out thousands of companies, millions of jobs and billions of investment dollars. No part of the American economy is unaffected.” So says Bud Burrell, industry expert and shareholder advocate adding “You don’t annihilate the companies in this economy that create new jobs without destroying the entire country.”

    Movie Director and select cast available for interviews.

  25. They are effectively making the bank for international settlements a global central bank, above democratic government control (reporting to the banksters) and giving it the power to print a new global currency (IMF special drawing rights).

    http://www.webofdebt.com/articles/basel.php

    In other words, they are crashing the economy for a reason.

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At the time much of the content on DeepCapture.com was written, the Great Financial Crisis of 2008 was either on the verge of happening or had just occurred. In those days, emotions among this publication’s contributors were raw and, in an effort to get their warnings noticed and appropriate blame placed, occasionally hyperbolic language and shocking imagery were employed. Were we to write these entries today, a different tone would most certainly prevail.

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