Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (64947)	3/5/2001 9:16:23 AM
From: long-gone	Read Replies (1) \| Respond to of 116764

Monday March 5, 6:53 am Eastern Time Japan watchdog probes brokers after stock slide (UPDATE: Recasts with company, government comments, details throughout) By Shun Watanabe TOKYO, March 5 (Reuters) - Japan's securities watchdog said on Monday it was investigating several brokerages for trading related to stock index-linked bonds, saying ``unnatural'' developments had been seen in the stock market recently. The Securities and Exchange Surveillance Commission (SESC), which last month urged financial regulators to penalise employees of two foreign brokerages for violations involving exchangeable bonds (EBs), has tightened its monitoring of any irregularities in domestic and foreign brokerage activities. In a separate move, Japan's financial regulators said on Monday they had urged the two brokerages -- UBS Warburg (Japan) Ltd and Commerz Securities (Japan) Co Ltd -- to take steps to avoid any repetition of such EB-linked violations. Financial Services Agency Commissioner Shoji Mori said one of the two brokerages will voluntarily pay damages totalling around 77 million yen to investors to compensate for bonus coupons they would have received had the illegal dealings not occurred. An SESC official said Commerz Securities had agreed to pay some form of reimbursements and that UBS Warburg may follow suit. UBS Warburg (Japan) Ltd is an investment banking arm of Swiss company UBS AG (NYSE:UBS - news), and Commerz Securities (Japan) Co Ltd is an investment banking division of of Germany's Commerzbank AG . Commerz Securities (Japan) spokesman Philippe Avril said his firm was considering ways to compensate investors ``but we haven't taken any final action yet''. UBS Warburg had also submitted a draft plan to prevent repetition of improper transactions, the SESC official, adding that stock dealings by a UBS trader had cost investors some 70 million yen ($587,400). Velvet Yoshinami, a spokeswoman for UBS Warburg, said: ``We are discussing with the regulators compensation matters.'' She declined to elaborate. The SESC's latest investigation into up to five Japanese and foreign brokerages comes as the benchmanrk Nikkei share average plumbs new depths, falling last week to a 15-year closing low of of 12,133.90. ``We are conducting a hearing at no more than five brokerages, both Japanese and foreign, in connection with index-linked securities,'' said an SESC official, who declined to be identified. He said the watchdog was investigating price movements last Wednesday, when the Nikkei breached 13,000 yen. KNOCKOUTS Analysts had said the plunge partly reflected aggressive hedge selling related to equity derivatives products, mainly structured bonds with returns linked to the Nikkei's level. Some brokers are suspected of selling stocks deliberately to try to push down the Nikkei average to below pre-determined levels, or so-called ``knockout'' points. (cont) biz.yahoo.com

To: Rarebird who wrote (64947)	3/5/2001 10:24:22 AM
From: lorne	Read Replies (3) \| Respond to of 116764

Rarebird. Have a question for yourself or the thread. It appears to me that over the past couple of years Greenspan has been referring to the stock market as being overheated or " irrational exuberance" and because of this he by raising interest rates has intentionally pierced the so called bubble. So here is my question? Will a market that has been intentionally deflated react the same way as one that has burst due to " irrational exuberance? Thanks Lorne