Post by fastwalker on Feb 13, 2006 8:27:41 GMT -5
This is a long post, but worth a read.
tinyurl.com/blljf
................Court In Amicus Brief; SEC Arguments Today
via COMTEX
Feb 13, 2006 12:31:00 AM
Feb 13, 2006 (financialwire.net via COMTEX) --
February 13, 2006 (FinancialWire) Is a rogue sector of the U.S. Securities and Exchange Commission inexplicably involved after all in a conspiracy to mislead the Congress, its own Commissioners, the public and now the courts in the illegal manipulative stock scandal known as StockGate?
There is a growing chorus of speculation that it may very well be after the SEC filed an Amicus brief in the case involving Nanopierce, now Vyta Corp. (OTCBB: VYTC) that critics say failed to include its responsibility to "settle" securities. At the same time, Rodney Young, CEO of Eagletech (OTC: EATC), the company featured on the truncated General Electric's (NYSE: GE) Dateline NBC program on naked shorting, will argue that "grandfathering" of lawbreakers is a violation of the Fifth Amendment, at the SEC at 10 a.m. today.
Meanwhile, the SEC is seeking comments on adding OTC and OTCBB companies to its tracking of short interest.
The rule-making is located at www.sec.gov/rules/sro/nasd/34-52679.pdf
Comments are being solicited for the next three weeks at www.sec.gov/rules/sro/nasd/nasd2005112.shtml Some eight comments have already been received, from Andrea D. Orr, Assistant General Counsel, NASD, Greg Hogberg, Donald L. Smith, Dr. Jim DeCosta, Paul Vuksich, Daniel Opd**e, Chris Meredith, and David Patch, proprietor of the website, InvestigatetheSEC.com, devoted to the campaign against naked shorting.
The transcript for a November 30, 2005 forum sponsored by the North American Securities Administrators Association has been posted at www.ncans.net/files/NASAAtrans.pdf
The issue, exclusively covered by FinancialWire for 3-1/2 years (since June 17, 2002), has recently become mainstream news as Overstock (NASDAQ: OSTK) has sued, Refco (OTC: RFXCQ), behind the torment of Sedona (OTCBB: SDNA) and its shareholders, has imploded, and coverages have expanded to Fox News (NYSE: NWS), NBC and CNBC.
NASAA brought James Brigagliano, assistant director of the Division of Market Regulation, who served as new SEC Commissioner Annette Nazareth's second-in-command when she was head of the division, face-to-face with detractors who have questioned that division's commitment to enforcing the provisions of SEC Regulation 17A(a)(1)(A), which states: "The prompt and accurate clearance and settlement of securities transactions, including the transfer of record ownership and the safeguarding of securities and funds related thereto, are necessary for the protection of investors and persons facilitating transactions by and acting on behalf of investors."
It was Nazareth who in a now-infamous New York Times interview, inferred that concerns about naked short selling is simply about investors "who want the price of their stock to go up." It was Brigagliano who has been accused by gadfly David Patch of lying to Congress, and who told Euromoney that what appears to be monumental profit-taking by short sellers at the expense of small investors whose shares were apparently "counterfeited" prior to January, 2005, was "grandfathered" by the SEC to avoid "market disruptions."
After the implosion of Refco, whose bankruptcy auditors have found an apparent $10.5 billion item related to short sales, it became apparent to observers that the term "market disruptions" was a euphemism for the possibility of a cataclysmic meltdown in the U.S. financial system, a possibility that appears still possible given the abject failure of Regulation SHO to dent ongoing market manipulations.
Connecticut Securities Director and immediate past president of NASAA Ralph A. Lambiase will moderate the Forum. In a letter to Patch, Lambiase said he had formed a multi-state task force to investigate naked short sales, which many saw as a prod to the SEC whose Regulation SHO has only spotlighted the size of the manipulative abuse but according to members of the U.S. Senate Banking Committee has done little to curtail it.
Lambiase has also been a critic of the Depository Trust and Clearing Corp., whose "stock borrow program" has been accused of aiding and abetting violations of SEC Regulation 17(a). The organization has admitted to $6 billion a day in "fails to deliver," another euphemism, in this instance for counterfeit shares.
The NAASA panel was perhaps more defined by the fact that no one representing the DTCC appeared.
Other panelists included James J. Angel, Associate Professor of Finance at the McDonough School of Business at Georgetown University, who spoke three years ago at an Investrend Information sponsored CEO Council event, Peter J. Chepucavage, General Counsel of Plexus Consulting Group, LLC in Washington, D.C., and an advisory board member to Investrend Research-covered Public Company Management Corp. (OTCBB: PUBC), and John Finnerty, Professor of Finance at Fordham University Graduate School of Business Administration and a Principal with Analysis Group, Inc., and
Also, Anand Ramtahal, Vice President, Division of Member Firm Regulation, New York Stock Exchange; Robert Shapiro, co-founder and chairman of Sonecon, LLC, and former U.S. Under Secretary of Commerce for Economic Affairs; Susanne Trimbath, Chief Executive Manager of STP Advisory Services and Senior Research Economist; and a representative of NASD.
NASD, a representative of the NASD has been invited.
The event was meant to prod the SEC to "consider additional measures to limit the detrimental impact of abusive naked short-selling of the stock of small businesses," according to Patricia D. Struck, president of the North American Securities Administrators Association.
NASAA had previously signaled its growing discomfort with the pace of the SEC response to a scandal that some believe could implode the entire U.S. financial system the same way Refco was brought down after what may have been a mammoth $10.5 billion exposure to what bankruptcy accountants entered as "securities sold, not yet purchased."
The DTCC has furiously fought to punish and impede any media that has dared to mention it in connection with StockGate.
Recently, Larry Thompson, Chief Counsel for the Depository Trust and Clearing Corp., mounted what appears to be a brazen and open libel of FinancialWire directly in the face of warnings that members of his Board of Directors received only days before for what Attorney Marshal Shichtman, Esq., referred to as reckless and apparently willful misbehavior against the media.
All 20 members of DTCC's board, including Jill M. Considine, Chair and CEO, and Donald F. Donahue, COO, DTCC; Jonathan E. Beyman, CEO, Lehman Brothers (NYSE: LEH); Randolph L. Cowen, Global Head of Technology and Operations, Goldman Sachs Group (NYSE: GS); Dianne Schueneman, Senior VP, Merrill Lynch & Co. (NYSE: MER), New York; Douglas Shulman, President, NASD, Inc., Washington, DC; and Timothy J. Theriault, President, The Northern Trust Co. (NASDAQ: NTRS); and Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange, had been asked by Shichtman to "reign in" Thompson and other high executives of DTCC following two documented instances of media tampering involving FinancialWire.
The latest attack came in a letter to Financial Express in India, in response to Sucheta Dalal's column, 'Pitfalls ahead in new Sebi proposal?" Stating that the reference to the Depository Trust & Clearing Corporation is "largely inaccurate," Thompson said that "DTCC's stock borrow programme is not being probed by NASD or any other regulator."
Earlier in the year, the DTCC's counsel had also said it had not been sued despite public evidence that it had been.
Thompson said that DTCC's subsidiaries serve as the central infrastructure in the US for post-trade clearance and settlement of virtually all trading of equities and fixed income securities. "Our activities are highly regulated by the US Securities and Exchange Commission, the Federal Reserve and the New York state banking department.
"Ms Dalal's reliance on Financialwire is unfortunate. It is not a legitimate news source."
He added that on her reference to lawsuits, DTCC has been sued by a handful of companies and investors in regard to naked short-selling. In every case but two (which are still pending dismissal motions), the cases have been dismissed or withdrawn by the plaintiffs.
"DTCC does not regulate short selling (naked or otherwise) or other marketplace transactions, and has no power either to allow or stop it. Regulatory and enforcement powers rest with the SEC and with the exchanges upon which the transactions are conducted."
The published statement is very similar if not the same as has been made to distribution vendors of the newswire in attempts to directly interfere with its publication.
Financial Express has been asked by FinancialWire to ascertain Thompson's "proof" behind his assertions, noting that its team of editors and reporters, most of whom are profiled at www.financialwire.net , have extensive journalism backgrounds, and that there is no basis whatsoever for what now appears to be libelous comments.
The most recent effort followed the DTCC's successful interference with FinancialWire's distribution via Investors Business Daily and Yahoo, Inc. (NASDAQ: YHOO) on February 13, 2005, a deed to which attorneys for the DTCC admitted to in a letter to Shichtman in April, in what appears to have been at the time a full-court press against unfriendly news.
More
tinyurl.com/blljf
................Court In Amicus Brief; SEC Arguments Today
via COMTEX
Feb 13, 2006 12:31:00 AM
Feb 13, 2006 (financialwire.net via COMTEX) --
February 13, 2006 (FinancialWire) Is a rogue sector of the U.S. Securities and Exchange Commission inexplicably involved after all in a conspiracy to mislead the Congress, its own Commissioners, the public and now the courts in the illegal manipulative stock scandal known as StockGate?
There is a growing chorus of speculation that it may very well be after the SEC filed an Amicus brief in the case involving Nanopierce, now Vyta Corp. (OTCBB: VYTC) that critics say failed to include its responsibility to "settle" securities. At the same time, Rodney Young, CEO of Eagletech (OTC: EATC), the company featured on the truncated General Electric's (NYSE: GE) Dateline NBC program on naked shorting, will argue that "grandfathering" of lawbreakers is a violation of the Fifth Amendment, at the SEC at 10 a.m. today.
Meanwhile, the SEC is seeking comments on adding OTC and OTCBB companies to its tracking of short interest.
The rule-making is located at www.sec.gov/rules/sro/nasd/34-52679.pdf
Comments are being solicited for the next three weeks at www.sec.gov/rules/sro/nasd/nasd2005112.shtml Some eight comments have already been received, from Andrea D. Orr, Assistant General Counsel, NASD, Greg Hogberg, Donald L. Smith, Dr. Jim DeCosta, Paul Vuksich, Daniel Opd**e, Chris Meredith, and David Patch, proprietor of the website, InvestigatetheSEC.com, devoted to the campaign against naked shorting.
The transcript for a November 30, 2005 forum sponsored by the North American Securities Administrators Association has been posted at www.ncans.net/files/NASAAtrans.pdf
The issue, exclusively covered by FinancialWire for 3-1/2 years (since June 17, 2002), has recently become mainstream news as Overstock (NASDAQ: OSTK) has sued, Refco (OTC: RFXCQ), behind the torment of Sedona (OTCBB: SDNA) and its shareholders, has imploded, and coverages have expanded to Fox News (NYSE: NWS), NBC and CNBC.
NASAA brought James Brigagliano, assistant director of the Division of Market Regulation, who served as new SEC Commissioner Annette Nazareth's second-in-command when she was head of the division, face-to-face with detractors who have questioned that division's commitment to enforcing the provisions of SEC Regulation 17A(a)(1)(A), which states: "The prompt and accurate clearance and settlement of securities transactions, including the transfer of record ownership and the safeguarding of securities and funds related thereto, are necessary for the protection of investors and persons facilitating transactions by and acting on behalf of investors."
It was Nazareth who in a now-infamous New York Times interview, inferred that concerns about naked short selling is simply about investors "who want the price of their stock to go up." It was Brigagliano who has been accused by gadfly David Patch of lying to Congress, and who told Euromoney that what appears to be monumental profit-taking by short sellers at the expense of small investors whose shares were apparently "counterfeited" prior to January, 2005, was "grandfathered" by the SEC to avoid "market disruptions."
After the implosion of Refco, whose bankruptcy auditors have found an apparent $10.5 billion item related to short sales, it became apparent to observers that the term "market disruptions" was a euphemism for the possibility of a cataclysmic meltdown in the U.S. financial system, a possibility that appears still possible given the abject failure of Regulation SHO to dent ongoing market manipulations.
Connecticut Securities Director and immediate past president of NASAA Ralph A. Lambiase will moderate the Forum. In a letter to Patch, Lambiase said he had formed a multi-state task force to investigate naked short sales, which many saw as a prod to the SEC whose Regulation SHO has only spotlighted the size of the manipulative abuse but according to members of the U.S. Senate Banking Committee has done little to curtail it.
Lambiase has also been a critic of the Depository Trust and Clearing Corp., whose "stock borrow program" has been accused of aiding and abetting violations of SEC Regulation 17(a). The organization has admitted to $6 billion a day in "fails to deliver," another euphemism, in this instance for counterfeit shares.
The NAASA panel was perhaps more defined by the fact that no one representing the DTCC appeared.
Other panelists included James J. Angel, Associate Professor of Finance at the McDonough School of Business at Georgetown University, who spoke three years ago at an Investrend Information sponsored CEO Council event, Peter J. Chepucavage, General Counsel of Plexus Consulting Group, LLC in Washington, D.C., and an advisory board member to Investrend Research-covered Public Company Management Corp. (OTCBB: PUBC), and John Finnerty, Professor of Finance at Fordham University Graduate School of Business Administration and a Principal with Analysis Group, Inc., and
Also, Anand Ramtahal, Vice President, Division of Member Firm Regulation, New York Stock Exchange; Robert Shapiro, co-founder and chairman of Sonecon, LLC, and former U.S. Under Secretary of Commerce for Economic Affairs; Susanne Trimbath, Chief Executive Manager of STP Advisory Services and Senior Research Economist; and a representative of NASD.
NASD, a representative of the NASD has been invited.
The event was meant to prod the SEC to "consider additional measures to limit the detrimental impact of abusive naked short-selling of the stock of small businesses," according to Patricia D. Struck, president of the North American Securities Administrators Association.
NASAA had previously signaled its growing discomfort with the pace of the SEC response to a scandal that some believe could implode the entire U.S. financial system the same way Refco was brought down after what may have been a mammoth $10.5 billion exposure to what bankruptcy accountants entered as "securities sold, not yet purchased."
The DTCC has furiously fought to punish and impede any media that has dared to mention it in connection with StockGate.
Recently, Larry Thompson, Chief Counsel for the Depository Trust and Clearing Corp., mounted what appears to be a brazen and open libel of FinancialWire directly in the face of warnings that members of his Board of Directors received only days before for what Attorney Marshal Shichtman, Esq., referred to as reckless and apparently willful misbehavior against the media.
All 20 members of DTCC's board, including Jill M. Considine, Chair and CEO, and Donald F. Donahue, COO, DTCC; Jonathan E. Beyman, CEO, Lehman Brothers (NYSE: LEH); Randolph L. Cowen, Global Head of Technology and Operations, Goldman Sachs Group (NYSE: GS); Dianne Schueneman, Senior VP, Merrill Lynch & Co. (NYSE: MER), New York; Douglas Shulman, President, NASD, Inc., Washington, DC; and Timothy J. Theriault, President, The Northern Trust Co. (NASDAQ: NTRS); and Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange, had been asked by Shichtman to "reign in" Thompson and other high executives of DTCC following two documented instances of media tampering involving FinancialWire.
The latest attack came in a letter to Financial Express in India, in response to Sucheta Dalal's column, 'Pitfalls ahead in new Sebi proposal?" Stating that the reference to the Depository Trust & Clearing Corporation is "largely inaccurate," Thompson said that "DTCC's stock borrow programme is not being probed by NASD or any other regulator."
Earlier in the year, the DTCC's counsel had also said it had not been sued despite public evidence that it had been.
Thompson said that DTCC's subsidiaries serve as the central infrastructure in the US for post-trade clearance and settlement of virtually all trading of equities and fixed income securities. "Our activities are highly regulated by the US Securities and Exchange Commission, the Federal Reserve and the New York state banking department.
"Ms Dalal's reliance on Financialwire is unfortunate. It is not a legitimate news source."
He added that on her reference to lawsuits, DTCC has been sued by a handful of companies and investors in regard to naked short-selling. In every case but two (which are still pending dismissal motions), the cases have been dismissed or withdrawn by the plaintiffs.
"DTCC does not regulate short selling (naked or otherwise) or other marketplace transactions, and has no power either to allow or stop it. Regulatory and enforcement powers rest with the SEC and with the exchanges upon which the transactions are conducted."
The published statement is very similar if not the same as has been made to distribution vendors of the newswire in attempts to directly interfere with its publication.
Financial Express has been asked by FinancialWire to ascertain Thompson's "proof" behind his assertions, noting that its team of editors and reporters, most of whom are profiled at www.financialwire.net , have extensive journalism backgrounds, and that there is no basis whatsoever for what now appears to be libelous comments.
The most recent effort followed the DTCC's successful interference with FinancialWire's distribution via Investors Business Daily and Yahoo, Inc. (NASDAQ: YHOO) on February 13, 2005, a deed to which attorneys for the DTCC admitted to in a letter to Shichtman in April, in what appears to have been at the time a full-court press against unfriendly news.
More