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To: patron_anejo_por_favor who wrote (33361)	11/2/2000 8:09:20 PM
From: rolatzi	Respond to of 436258

They should collect damages from the brokerages, too! HO, HO, HO! The one thing they should be allowed is more than $3K in capital losses on their income taxes. That amount is outragous.

To: patron_anejo_por_favor who wrote (33361)	11/2/2000 10:20:23 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

I am puzzled by the anecdote of the man who was allegedly contacted on Sunday afternoon and told to transfer funds immediately. I suppose the margin clerks were working overtime and just got around to calling him on Sunday? The only way I know to transfer funds on a Sunday is via credit card - if it's in a savings account, you have to give your bank a wire transfer order when it's open, right? I've never tried to do a wire transfer without going down to the bank and filling out the paperwork in person. So on the facts presented it does sound outrageous. But I suspect there is more to the story once the other side is presented. The law on modification of a written contract by the course of dealing between the parties is pretty much as the experts stated in the article. Depending on the facts, there may be a case, if the broker has made it a practice over time of giving you three days to meet the call, it may be reasonable for you to assume that you've got three days. But the argument can backfire because if you are such a seasoned investor as to have had enough margin calls to establish a course of dealing, then you ought to know the rules. It really depends on the facts of the case. For example, a newbie investor can't say, well, I thought I had three days when the contract says one. Arbitration tends to favor the brokerages, anyway, in the absence of wrong-doing.

To: patron_anejo_por_favor who wrote (33361)	11/4/2000 10:07:07 AM
From: Mama Bear	Respond to of 436258

"In the past, many brokerages gave investors three days to come up with the money. But this year, many firms demanded cash on the spot. " I'll bet that most folks don't understand the difference between a house call and a Fed call. If people were sold out with no notice on a house call and the brokerages standard practice has been to give three days they likely have a case. However, I'd be willing to bet that most of the immediate liquidations were from Fed calls, and I believe the brokers don't have any discretion there. Fed call = 25% equity to loan, house call is usually 30%, sometimes 35% depending on the brokerage. Don't mistake this post as compassion for people who use margin and don't have the sense to cut their losses. Regards, Barb