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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: lindend who wrote (1459)	6/21/1999 10:17:00 PM
From: Mama Bear	Read Replies (1) \| Respond to of 10293

"Schwab says they legally can't provide interest on short proceeds." Twaddle. Ask Michael Burke about short rebates. #Subject-6780 Barb

To: lindend who wrote (1459)	6/22/1999 2:07:00 AM
From: Mark L.	Read Replies (1) \| Respond to of 10293

"Schwab says they legally can't provide interest on short proceeds." Now you know how Charles got on the Forbes 400. Every firm I've ever done business with (5 firms) pays interest on short credit balances. None of them do it enthusiastically however. I have been told that it is fruitless to even broach the subject unless you are talking about at least $600,000 in short credit balances, but that may be an urban legend. For whatever it's worth, the interest I'm paid seems to have gone down somewhat in the last year.

To: lindend who wrote (1459)	6/23/1999 2:17:00 PM
From: Marconi	Respond to of 10293

Hello Linden deCarmo: interest on short proceeds query It has been too long since I set up the account to recall the specific details. Some of the balance from short sales is reserved and cannot be put at risk. Translation--no interest from something 'risky' like money market share--and there is a small risk in money market shares. I am repeating myself, but the historic way to dodge that requirement was to put the balance in T-bills--liquid, and assumed to be riskless--the Feds can print more to pay up. I know in my situation that the interest I receive is significantly higher than doing nothing about it. I do not receive interest on every cent in my short account. If you continue to be interested, I could inquire further the specifics of the deal with my primary trading account. I am confident no regulations are being violated. As a rule of thumb, if you think you should be treated differently, keep asking your broker, ask as you are doing now, and compare notes. It is fair to knowingly state' I can do better elsewhere'. Persistence can pay off. Or find a broker with a more suitable deal. I do not advocate jumping from broker to broker mindlessly. At critical times in years past, I have found it at the least very assuring to be able to access my broker and consider trades, and the relationship that they know me and I know them. That is what business is about--people relationships. I remember in October 1987 being tied up in a seminar all Monday and casually calling my broker to check in during morning break to see if anything was happening--he sounded excited and said he thinks the market is down 800-900 points--I said you are kidding--he said no, and related the tape was at least 20 points behind as best as they could guess and he was not sure if any of the quotes he had were accurate. I was a little shocked. With the lack of accurate information, I did nothing at the time. I waited a few days and made some poor decisions then. I failed to open my mail until a couple weeks later that would have caused me to bail out of funds to money funds and possibly have the guts to buy into the panic partially and bottom fish in the time after it. For the rest of that Monday I was wondering what was going on. It is my recollection a lot of people were panicky at the time--calls were not getting through, no one knew quite what was going on. That incident is not sufficient to justify a broker relationship. I have found over the years since then, having a broker who knows me quite useful (as well as before 1987, too). I have relied on being able to call in to check positions and get quotes when everything else I use to manage accounts has failed. I enjoy the interaction, too. I would think one broker (backed by staff) is sufficient if you can wire funds from other accounts within the day. There are economies to be realized in on-line trading. There are pitfalls, most notably when markets are turbulent. A matching of risk and returns is still demanded for effective stewardship of financial resources, and there have been shifts, but there is significant room for both on-line ~$10-20 trading cost and full service brokers with negotiated relationships, and spectrum between. The last 10 years of up market no matter what is quite unusual. The market remains frothy by historical standards--no new news in that. The untested waters are what happens when the public feels poorer from market changes in face of the major asset of the public being investments in this decade, and what happens with trading infrastructure, particularly newer infrastructure, when significant reversals occur that will strain infrastructure noticeably in yet unrealized ways. Best regards, m